There are several types of loans available for a consumer, in the market today. Among these the more popular ones include are home/property loans, vehicle loans, education loans, personal loans and the like. And along with these options, is a loan against your assets like a gold loan, which you can avail from a bank. We Indians love our gold – jewellery, bars, coins and biscuits, and take pride in the fact that it is continually seeing a good amount of capital appreciation over the years – so what’s not to love!
Taking a gold loan from a bank or NBFCs (non-banking financial companies) gives you instant cash for perhaps a down payment on a vehicle purchase, a quick family holiday, and it can even bail you out in a cash emergency.
Need more convincing? Read on.
1. Instant processing – You give your gold, the bank evaluates it, credits the loan amount into your account and ‘holds’ your gold until your repay the same. As the appraisal of the gold is done on the spot by an expert, the bank can disburse the loan in a few hours, thereby cutting down the processing time. Some banks have eliminated processing fees too.
2. Only basic ID proof is required – Unlike other loan providers, for a gold loan your credit history isn’t asked for. You need to provide your basic information along with the
gold/jewellery you are giving the bank and if this is a bank that you hold an account with,
you only need to hand over your asset for evaluation. Since your gold is the collateral, banks are not too worried about recovering the principal.
3. Lower interest rates – Banks and financial institutions charge a lower interest rate when compared to an unsecured personal loan, as they have your gold / jewellery as collateral in hand. Some banks offer rates as low as 8%, while personal loans come with a starting interest rate of 12-15%.
4. Flexible repayment options – With a gold loan, the borrower has more repayment options like paying only the interest monthly and the principal can be paid when closing the loan.
Some banks and lenders don’t levy any prepayment charges, while some of the banks that do, ensure the penalty isn’t over 1%.
5. Your gold is safe – Your gold will remain in a secure place like the bank vault throughout the time. Once you repay the loan you get your gold back!
Get in touch with verified loan experts through getspini.com for quick and hassle-free ways of getting a gold loan.