A good way to get out of a sticky situation is to simply take a Gold Loan against your precious ornaments. It is simple and quick and gets you the much needed funds instantly.
Gold Loans in India are considered to be the most convenient and hassle-free way to borrow funds instantly. You can approach any lender from the various loan providers and get the loan instantly.
Here Is A Snapshot Of Gold Loans In India
Up to 90% of the market value of the gold pledged
Around 9% - 11% p.a
12 months, which can be extended
Check the latest Gold Loans for your needs
What Are The Key Advantages Of Taking A Gold Loan Against Your Ornaments?
Instant funds - There is no need to wait around for weeks to get a loan. You can get your loan instantly. A number of reputed gold loan lenders have a vast network of branches around the country offering easy access to gold loans.
No collateral is required - You don't have to give any security for the loan. Your precious ornaments, your gold, your silver, or even diamond jewellery can be used as collateral.
Your gold is safe with the lender - You don't need to worry about the physical security of your gold items as lenders have a well-protected vault to safeguard your gold ornaments until you repay the loan and reclaim the gold.
No processing fees - Gold loans do not charge any processing fees and no hidden charges, so there is no burden on you.
Easy application process - There are no lengthy documentation requirements. You just need to fill in a simple application form and get your loan instantly.
Convenient repayment schedules - You can choose to pay your loan back in minimum monthly instalments or make a full repayment as per your convenience. You can choose the repayment schedule you want. For monthly payment, quarterly, yearly, or even bi-annual schedules; whatever works best for you.
Lowest Interest rates - Interest rates on gold loans start as low as 9-11% only. This makes gold loans a better alternative for unsecured personal loans which have an average interest rate of 15-18%.
No Prepayment penalties - You can repay the gold loan in full at any time you have the required funds. There won't be any prepayment penalties.
A Few Things To Things To Consider Before Taking A Gold Loan
Gold loans are convenient, no doubt, however, it is important to compare gold loans and compare different loan providers before taking a loan. Make sure you get the best terms and rates before you take a loan.
1. Compare gold loan interest rates
2. Shop around to find the best repayment options
3. Find a lender who offers the most loan amount for your gold value
4. Evaluate the credibility of the lender
5. Check the safety measures undertaken by the lender for the gold you pledge
6. Compare the loan disbursal time amongst different lenders
7. Choose a lender who respects customer interests and has a good customer support system
If you are looking for instant loans, here are some Instant Short Term Loan options for you
What Are The Common Repayment Options Available For Gold Loans?
Gold loan is a secured loan and that is why the process is simple. Since the quality of the gold is verified beforehand, the lender is assured that the loan will not turn bad. So they generally offer multiple repayment options for the convenience of the customer -
1. Pay Interest as EMI and Principal Later: With this option, you can repay the interest amount as per the gold loan's EMI schedule, but the principal amount borrowed must be paid in full at the time of maturity.
2. Make Partial Payments: Make partial payments of both interest and principal as needed. Regardless of the pre-set EMI plan, partial or even entire payment of both the interest and principal components is permitted. If you repay your principal first, your total interest pay-out, which is normally computed daily based on the amount of loan outstanding, will be reduced. You can save a lot of serviceable interest this way.
3. Bullet Repayment: The Bullet Repayment method requires you to repay the entire principal and interest amount at the conclusion of the loan's term. Interest is calculated each month with this repayment scheme, but payment, together with principal repayment, is due only at the conclusion of the term.
4. Regular EMI option: Designed for the salaried class, the regular EMI Gold loan is designed for those who have monthly financial inflows into their bank accounts. In this case, the EMI comprises both interest and principal payments. Because this loan is going to salaried candidates, it is also a speedy process.
FAQs Taking Gold Loans Against Your Ornaments
1:What exactly is a gold loan?
A Gold Loan is where you pledge your gold jewellery as collateral for the money you borrow from a lender for a set period of time. The borrower then repays the loan amount to the lender, along with the relevant interest rate, at the end of loan tenure.
2:Who qualifies for a gold loan?
If you are a trader, businessman, salaried employee, self-employed person, or farmer, you can apply for a gold loan. The age limits differ from bank to bank, but if you are between the ages of 18 and 60, you can acquire a loan against loan.
3:What documentation is needed to apply for a gold loan?
The following documents must be submitted when applying for a gold loan:
- Photographs - 2
- gold loan application form
- Identity Documentation/PAN Card/Aadhaar Card
- Proof of Address
4:How is the interest on a gold loan calculated?
The formula for calculating interest on a gold loan is straightforward: The total amount to be paid less the principal amount. You may also use the gold loan online interest calculator to figure out how much you'll have to pay at the conclusion of the policy's term.
5:How is the EMI on a gold loan calculated?
Using an online EMI calculator, you can easily determine your Gold loan EMIs. When done manually, there is a greater potential of error. As a result, it is preferable to use an online EMI calculator. When utilizing an EMI calculator, the following information is required:
- Interest rate
- The amount of the loan