Gold Loan – Financing Option for Short Term Needs
In India, people are culturally and showing emotion connected to gold. Once bought it’s kept in lockers. it’s sort of a dead investment. individuals tend to keep it in lockers and don’t use it for the cash. One will use it to come back over the money crisis. thus whenever one wants cash, think about gold, and build cash.
This loan provided by completely different banks and NBFCs. Major Banks like Muthoot Gold Loan Finance, Manappuram, HDFC Bank, SBI Bank, ICICI Bank, AXIS Bank, and many a lot of giving gold loans
Applying for a loan isn’t a brand new method in India. it’s been existing within the Indian marketplace for an extended time. Earlier it had been into the unorganized sector. Moneylenders used gold as collateral for loaning cash. Now, banks are going in it because the worth of gold is touching the sky. Therefore, gold will be simply used as collateral. it’s turning into a preferred possibility day by day.
The process to apply :
An individual will apply through a bank or associate degree NBFC. He/she has got to provide his/her gold to the loaner. The loaner can check the purity of the gold. when analysis, the work is finished. The individual must attach a PAN card, proof of address, etc. Usually, the loan quantity is 80% of the worth of gold.
The individual gets his jewelry back when repaying the loan quantity. The utmost period that a Loan Against Gold is provided is one year. It’s a short-run loan and one will rise to 85% of the worth of the loan.
There are several rbi norms that the banks and NBFCs got to follow. So, one will rest assured that the loans provided aren’t a burden on the customer’s part.