Tips on How to Avail Gold Loan

Smart loan that saves your money

The trend of gold loans has flooded the Indian market. Since gold is known as the only non-income producing asset. Hence in order to turn it productive, you can take loan against the gold owned and thus, utilize this commodity for a better purpose. Most of the times, life may put you through difficult circumstances, wherein you might need to arrange finance at a short notice. During these hard times, you have an option of applying for a loan but unfortunately, it takes some time to get your personal loan approved.

Hence in situations such as these, the option of  applying for a gold loan is what you should consider on priority.

How do you apply For a Gold Loan?

Well, it is simple. You simply have to mortgage your gold in the bank in order to avail an instant loan. It is an instant process wherein the bank shall sanction you loan even in an hour. It is a conditional agreement where you need to pay an interest of 10-12% on the gold loan on a monthly basis. As soon you repay the entire amount, the gold is returned. It is that simple.

The following are the benefits achieved:

  1. It is an instant process.
  2. Your gold is safe.
  3. The documentation requirement is minimal.
  4. Easy repayment.
  5. The loan amount is declared only after assessing the value of the gold or jewellery.
  6. You have two options of repayment. One, you can repay the interest on a monthly basis while repaying the principal amount at the end of the tenure. Or you can choose option two wherein you pay on a monthly basis.
  7. You can avail the overdraft facility.

The minimum eligibility in order to avail this loan is eighteen years and above and the gold to be submitted as collateral needs to be over 18 Karats.