- What is a Gold Loan?
A gold loan (also called an anti-gold loan) is a secure loan taken by a borrower from a lender by promising their gold articles (in 18-24 carats) as security. Loans granted a certain percentage of gold, usually up to 80%, depending on the current market value and quality of gold
2. What are the benefits of borrowing gold?
Gold loans are like personal loans to meet your immediate financial needs, be it international education, wedding expenses, including medical emergencies or other personal use.
- Quick Release- Small documents lead to faster use of gold loans due to its safe environment.
- Flexibility of use- As there is no end-to-end monitoring, it gives you flexibility to use the loan at any cost.
- Type of secure loan: You do not need to send any other security / collateral to the lender other than the promised gold jewelry.
- Low Interest Rate: Gold loan interest rates are lower compared to personal loans, because gold acts as collateral.
3. What are the general interest rates and processing costs?
The interest rate on a gold loan varies from lender to lender and ranges from 9.24% to 17%. Processing fees from 1-3% of loans are also charged to other lenders. It is a good habit to check and compare interest rates, processing fees, late payment costs and prepaid charges with the lender before going into the loan.
4. What documents are needed to process a loan application?
The documentation required to claim a gold loan varies from lender to lender. However, the standard list of documents includes: Passport Size Photos, Proof of ID (PAN Card, Voting ID, Aadhar Card etc.) and proof of address (Passport, driver’s license, electricity bill etc.).
5. Can I cancel the loan? Are there any deductions?
Yes, you can always point out a loan at any time. Most lenders do not charge prepayments for gold loans, but a few lenders charge between 2-4% of the principal principal balance. Contact the lender to find out the decision-making process.
6. Where can I get a loan?
Gold loans are temporary loans and have flexible conditions ranging from at least one month to five years or more depending on the lender.
7. What should you be aware of?
Since a gold loan is secured with your gold, you should be careful about the repayment of the loan and you should take out the amount of loan you need and can pay for it comfortably. Mortgage default can adversely affect your credit score and report including cancellation of any future loan application.
8. What if I can’t pay my bills on the due date?
The action taken by default customers varies from lender to lender. Further failure to repay the loan will result in a notice being sent to you, informing you when you will need to cancel your obligations. Failure to repay the loan by the last day of the notice may also result in lenders at auction for your gold articles to recover their outstanding balance.
Get Jana Small Finance Bank Gold Loan with Dialabank by calling at 9878981144