Gold Loan – Financing Option for Short Term Needs
In India, people are culturally and emotionally attached to gold. Once bought it is kept in lockers. It is like a dead investment. People tend to keep it in lockers and do not use it for the money. One can use it to come over the financial crisis. So whenever one needs money, think of gold and make money.
Applying for a loan is not a new process in India. It has been existing in the Indian market for a long time. Earlier it was into the unorganized sector. Moneylenders used gold as collateral for lending money. Now, banks are entering into it as the price of gold is touching the sky. Therefore, gold can be easily used as collateral. It is becoming a popular option day by day.
The process to apply :
A person can apply through a bank or an NBFC. He/she has to offer his/her gold to the lender. The lender will check the purity of the gold. After evaluation, the paperwork is done. The applicant needs to attach a PAN card, proof of address, etc. Usually, the loan amount is 80% of the price of gold. The applicant gets his jewelry back after repaying the loan amount.
The maximum duration for which a Loan Against Gold is provided is 1 year. It is a short term loan and one can get up to 85% of the value of the loan. There are many RBI norms that the banks and NBFCs need to follow. So, one can rest assured that the loans provided are not a burden on the customer’s part.
|Leading Gold Loan Providers (Click to Apply)|
|Manappuram Gold Loan||Muthoot Gold Loan||Reliance Gold Loan||Other banks|