If you are in quick need of money and own gold jewellery, then a gold loan is an attractive and convenient option. Several lenders, including Manappuram Finance Limited, offer gold loans that are disbursed quickly and with minimal documentation.
Of course, since family jewelry is involved, it is important to make sure that you choose a reliable lender and that you are confident of redeeming your gold at the end of the loan tenure.
Loan amount and tenure for a gold loan from Manappuram
Amount: The loan amount depends on the value of the gold pledged. The gold should be of 18K-24K purity and the minimum loan amount is Rs 1000 while the maximum is Rs 1 crore.
Tenure: The tenure for a gold loan ranges from 1 month to 1 year. The tenure can be extended if you service the interest periodically.
Interest rate: The interest rate depends on the ratio of the loan amount to the value of the gold pledged or Loan to Value (LTV). For instance, if your gold is valued at Rs 1 lakh, a loan amount of Rs. 60,000 would attract a higher interest rate than a loan amount of Rs. 30,000. Manappuram does not charge a penalty for prepayment of the loan.
Documentation required for a gold loan
There is minimal documentation required since your gold is held as security. You need to have documents for ID proof and residence proof. There is no need for a Guarantor or Co-Signer.
Chennai branches of Manappuram
There are over 100 branches of Manappuram Finance Limited in Chennai district and it is simple to walk into the closest branch to procure your gold loan. There is a list of branches available on the company website. After the gold is valued, the approval is completed in minutes.
General advantages of a gold loan
It is a quick process: In India, gold loans are some of the quickest loans to be sanctioned.
Quick disbursal of money: Many lenders can have your gold valued quickly and sanction the loan immediately.
Minimal documentation required: Another advantage of a gold loan is that you are not required to submit a salary certificate since your gold is used as collateral. Even if you are currently unemployed or do not have a good credit score, you will still be eligible for this kind of loan. However, it is possible that for loans above a certain amount, some lenders might ask for a salary certificate.
Safe way to utilize an idle asset: Instead of storing your gold in a locker or at home, you can use it to raise money.
Lower interest rates: In general, interest rates on these loans are lower than on personal loans since the lenders have your gold as collateral.