What Is Gold Loan? And It’s Benefits [2022]

Whenever it comes to taking a loan. So we all feel a lot of shame in ourselves. We are not able to openly talk to anyone about the loan. And neither can get information about it. For this reason, sometimes we are not able to get a loan at the right time at a reasonable rate of interest. There is nothing wrong with taking a loan. But it is definitely wrong to take a loan unnecessarily and in excess of capacity. We, you should take the same loan. As much as we can easily pay. And we should not face any kind of problem.

What Is Gold Loan?

Gold loan is also a type of loan like any other loan, where you can take money by pledging your gold with the bank or financial companies and later you can get back your gold by repaying that money.

If you have money problem. If you want to take any type of loan in a hurry, then gold loan can be a good option for you. Because you do not face much problem in taking a gold loan, you can get it easily.

By the way, you can also get money by selling gold, but if you have a gold family. Which you want to keep with you as an identity, then in such a situation you can think about a gold loan. You can withdraw your gold by depositing the money received through gold loan at any time.

How To Apply For Taking Gold Loan

We hope you have come to know all the important things about Gold Loan. To take a loan against gold, first you have to choose the bank or finance company from which you want the loan. Now go to the nearest branch with the necessary documents for the loan knowing the terms and conditions of that bank. After going there, fill the application for Gold Loan and submit it along with the documents.

After filling the application, a Gold Loan Agreement is signed between the bank and you and you have to deposit your gold there , after which it becomes their responsibility until you pay the entire loan amount . The loan repayment tenure varies from 12 months to 36 months . Banks also charge loan processing fees from you.

If you do not repay the loan on time , then according to the agreement between you and the bank , the bank can sell that gold and recover your dues from it.

The information given through this article of ours , how to take gold loan , interest rate: How to get Gold Loan in Hindi ? If you like it then share it as much as possible . Leave questions related to loans taken against gold in the comments below .

What are The Benefits of Gold Loan?

  • Gold loan is available very quickly. Some loan companies claim to give loan in few minutes.
  • There is no need to submit more documents.
  • There is no need to provide income proof for taking gold loan.
  • You can get a gold loan even if you are earning a salary or are self-employed, all you need is gold.
  • The interest rate of a gold loan can be lower than that of a personal loan.
  • You borrow money by pledging gold, so the loan gets approved in a very short time.
  • For a home loan or other loan, your CIBIL score is important, but gold loan being a secured loan does not require any credit history.
  • No certificate or guarantee is required to take a gold loan.
  • Gold loan does not attract prepayment penalty for premature repayment like a home loan or personal loan.
  • Like a personal loan, you can use the gold loan amount for any purpose.

Documents required to get a Gold Loan

Let’s Know about the necessary documents needed for gold loan

  • For Identity: Passport, Voter ID Card, Driving License or Aadhar Card Any one of these documents
  • For Address Proof: Electricity Bill, Telephone Bill, Water Bill, Ration Card Any one of these documents
  • Photocopy of passport, driving license or any other document bearing your signature for signature
  • Passport size photo

Major Companies giving Gold Loan

Following are the major companies giving gold loan

  • Muthoot Finance
  • HDFC Bank Gold Loan
  • ICICI Bank Gold Loan
  • SBI Gold Loan
  • Axis Bank Gold Loan
  • Bank of Maharashtra Gold Loan
  • Dena Bank Gold Loan
  • Bank of India
  • Union bank Gold Loa
  • Mahindra Bank Box
  • YES BANK

Things to keep in mind when taking a gold loan

Loan Amount: When you take a gold loan, the loan amount you get is based on the value of the gold pledged by you. Lenders may also have fixed minimum and maximum loan amounts. So, if you need a specific loan amount, you must check whether you have enough gold for it, and whether it is within the limit set by the lender.

Interest Rate: Compared to an unsecured loan, the interest rate of a gold loan is lower as it requires the borrower to keep a collateral. Also, different lenders have different interest rates, so one should compare the interest rates of different lenders before applying for the loan.

Applicable Fees: In addition to the interest rate, there may be other charges such as processing fees, documentation fees, appraiser fees, payment default fees, loan overdue fees, etc. The addition of these charges can increase the overall cost of your loan. So, do not forget to take into account all the charges that the lender may levy before applying for a gold loan.

Loan Tenure: The repayment period of a gold loan can be between 3 months and 36 months. Hence, you should choose a suitable loan repayment tenure keeping in mind your repayment capacity.

Lender’s Credibility: There are many banks and financial institutions that offer gold loans as a part of their product portfolio. Before applying to any lender, make sure to check how reliable it is. For this, you should look at the safeguards put in place by the lender to keep your assets safe, online reviews, the customer service channels provided, etc.

Repayment Schedule: The repayment schedule of a gold loan is quite flexible. Depending on the options offered by your lender, you can make the repayment as EMI, or pay the interest and principal amount at the end of the loan repayment period, or pay the interest every month and repayment of the principal amount, loan repayment You can do it after the completion of the period. Therefore, you should choose the repayment structure or schedule most suitable for you.

Loan Comparison: It is very important to compare the features, benefits, and terms and conditions of gold loans offered by different lenders before applying for the loan.

Eligibility Criteria: To increase the chances of getting your loan application approved, you must check the eligibility criteria of the lender before applying for the loan

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