You can take a gold loan if you meet certain criteria. Usually, you need to be an individual and own the gold jewelry you wish to deposit as collateral. Once you pay off the gold loan, you can regain ownership of your gold asset.
You usually need to submit basic documents to apply for a gold loan. These include your KYC documents (proof of residence and identity), Form 60 or PAN card, a canceled cheque from your bank, and your photograph.
Once you get the loan, you can use the funds for various goals, from a medical emergency and business expansion to your child’s higher education and marriage. Just estimate how much you need to borrow and use a gold loan calculator to choose a suitable loan amount.
But can you get any benefits from taking a gold loan? Yes. Here are five features of a gold loan from a top lending bank.
Flexible Loan Amount
The lender must offer a flexible loan amount since the amount is to be borrowed on your specific need. For instance, you may need more money for your business expansion than for a medical emergency. So, it would help if you had the flexibility to choose a suitable loan amount. Leading banks offer gold loans starting from ₹10,000 to ₹10,00,000. So, you can get funds for both small and big financial requirements. You need to select the required amount on a gold loan calculator.
Quick Loan Disbursal
Top lending banks offer gold loans with quick disbursals to help meet your urgent needs. If your loan application is approved, the amount is usually disbursed to your bank account within a few hours. It would be best to visit the nearest branch of the chosen bank. Usually, an expert evaluates the purity and value of your gold asset in your presence. Besides, the per-gram price of gold on a specific day is considered. Then, the right value of your gold loan is determined. After that, the sales team reviews your loan application and disburses the sanctioned amount.
Non-Jumping Interest Rates
If you apply for a gold loan at a reputed lending bank, you can access an interest rate that never changes during the repayment tenure. The interest rate per annum would have a specific range and stay within that. So, you need not worry about paying higher EMIs since the interest rate won’t rise.
Flexible Repayment Options
The top banks for gold loans offer a range of repayment options. You can pay equated monthly installments (EMIs) periodically, and your interest burden will keep reducing over time. You can otherwise make a large prepayment or one or more partial payments during the tenure. The ideal time for that can be a salary hike. Otherwise, you can even pay off the entire loan at the end of the term. The last option is known as bullet repayment.
Safety of Your Gold
If you choose a trusted lending bank to borrow a gold loan, you can rest assured that your gold deposit is safe. It is sealed in your presence and then taken to a high-grade featured vault to ensure your asset is under strict protection and constant surveillance. So, you need not worry about the security of your gold.
Whenever you wish to take a gold loan, choose a renowned bank that offers this type of loan with the above benefits. However, if you need a loan for a plot purchase, opt for a home loan instead.