Gold loan is secured loans where gold ornaments are utilized as security. You pledged your gold adornments with the moneylender and get an advance. The credit sum is typically a level of the gold’s value. You can reimburse the loan through regularly scheduled payments. After the reimbursement, you get back your gold gems. Nationalized banks, private banks, and other money-related establishments offer these credits at the reasonable interest rate. Come and relish the Gold Loan Features.
Gold Loan Features
¢ The base measure of loan offered is Rs.25, 000 and one can get a loan of higher sums for a most extreme of Rs.50 lakhs.
¢ The reimbursement alternatives to the client are adaptable and client may pick any method of reimbursement suiting his or her needs
¢ The loan sanctioned and disbursal process is quick and basic. You need to go through lengthy documentation process.
¢ Loans are additionally accessible for short-term needs of people where the duration is for a brief time fram
¢ The loan is accessible against the security of gold going from 18 Karats to 24 Karats.
¢ The rate of loan given per gram of gold pledged is higher than that offered by different banks under a similar plan.
Secured Loan: Gold loans are types of secured loans. Simply you provide your gold ornaments as security to moneylender as an end-result of which you get the loan.
¢ Purpose: You are free to utilize your borrowed loan for any purpose as long as it isnt for any unlawful activity or for the stock market purpose. No-banking firms have even fewer confinements on what you can utilize the cash for.
Interest Rate and Charges: Banks are as of now charging around 12.5% interest for whatever duration you carry the loan for. They more often than not have a handling expense for the loan too. Non-banking firms contain 30 to 60 day and different plans where youll see the interest can be around two percent (per month). Every year, this works out to be around 27% for each annum, which is a high-interest rate.
Loan Amount: Lending can begin at sums as low as Rs 25,000, however, a few banks can loan you anyplace from Rs 10 lakhs above Rs 75 lakhs, contingent on the current golds value. The non – banking organizations as a rule bargain in considerably littler loan sums because they regularly oblige an alternate sort of client base. None of these two sorts of loan specialists charges an assessment expense for your gold.
Repayment Terms: Banks, for the most part, have terms that keep running from 3 to a year, yet you can prepay at whenever. This is essential to understand the repayment structure.
Gold Loan Eligibility
An individual applying for the Gold Loan should meet the accompanying eligibility criteria as set around the bank.
1. The loan is issued to people who are Resident Indians
2. The age of the individual ought to be between 18 years to 65 years
3. The immaculateness of the gold against which loan is accessible is 18 Karat to 24 Karat