Property loans and gold loans are both known as secured loans. This is because the customer provides collateral either in the form of property in the case of property loans or gold in the case of gold loans as security against the money received as a loan. If the customer fails to repay the loan, the lender has the rights to sell the collateral to settle the loan.
In the case of a gold loan, one can just walk into the nearest lender’s branch with either the gold coins or gold jewellery and pledge them for a gold loan. The gold is then assessed, basic documents are checked and the loan is sanctioned in money or in some cases as an account transfer. These loans are generally sanctioned across the counter and are very fast due to minimal documentation. The gold is locked away safely in vaults and returned to the customer once the loan is repaid in full.
Gold loans usually have a low interest rate that start at just 9.6% and are also advantageous as one does not need to provide proof of income or have a good credit score to apply for the same. Tenures range from 3 months to 12 months in most cases. Some banks offer a longer tenure of up to 4 years.
To apply for a gold loan, click here.
In the case of a property loan, one can pledge a land or house that they own as security against the loan. The loan amount is given usually around 40 percent to 60 percent of the property's market value. Documents for ownership of the property must be submitted along with other basic documents to get the loan sanctioned. The money is then transferred to their bank account. The ownership of the property is under the bank until the loan is repaid in full. Then, the property is restored to the customer.
Property loans usually have a low interest rate that start at just 8.75% and have advantages such as no requirement to provide income proof and no need to have a good credit score. Tenures range from 5 years to 15 years in most cases.
To apply for a property loan, click here.