A wide variety of schemes are available for those who wish to take a gold loan. But before this, you need to get your gold jewellery evaluated, according to which the loan amount will be decided based on the purity and net weight of the gold pledged.
Many financial companies offer gold loan schemes from which you can choose as per your requirements. If you choose a lender like Muthoot Finance, you can get various benefits. Some of them include in-house gold evaluation, online application, and special loan schemes for women. To get a gold loan, you need to keep your gold jewellery as collateral, which will then be valued according to the market standards. Once it is approved, you will get approximately 70% amount of the value of gold disbursed to your bank account. Once the tenure ends and you have fully paid back the loan with interest, you can get your gold jewellery back from the lender. Let’s take a look at some of the other features of a gold loan:
- Purpose
Many people take out gold loans when they need urgent funds for medical emergencies, marriage, vacations, or foreign education. Unexpected expenditures can sometimes strain your financial plans. However, a gold loan is a reliable solution that can cover such expenses.
- Fees
When apply for gold loan you will also be required to pay additional fees such as processing fees, late payment penalties for non-payment of interest, gold valuation fees, etc.
- Minimal documentation
It is the only loan that does not require the borrower to be employed or show a credit score. Compared to other types of loans, it has very few requirements for documents, so its application process is less time-consuming and quicker.
Benefits of Taking a Gold Loan
Gold loans are more convenient than other kinds of loans which have a long list of eligibility criteria and documents that you need to present to get a loan. But are there more benefits? Let us find out.
- Tenure
You get to choose from a variety of loan tenure options according to your requirements. Even if you wish to pay the loan back before the tenure, you can do so without paying any penalty. Its tenure ranges from 3 months to 48 months, depending on the lender you choose.
- Repayment
Gold loans have various repayment options, some of them are:
- Repayment in equated monthly installments or EMI
- Paying interest before and paying the principal amount at the end of the tenure
- Paying interest monthly and the principal loan amount at the end of the tenure
3. Rebates
If you get a gold loan from the best bank or NBFC, you may even get a discount on the interest rate on the loan. But this happens only if you repay the interest regularly.
Gold loan is an affordable option which can be used by anyone to get quick and easy financial assistance. To get the best gold loan schemes you can compare the key highlights of all the top lenders and choose the one that fits your requirements. You can easily apply for a loan online and even get it evaluated at the comfort of your home.
