You might be in a good job earning well, but there will be expenses that are very difficult to meet. These can crop up suddenly, and in order to cope up with them, taking a loan becomes necessary. Out of the many different types of loan facilities available, one that has a very low-interest rate is the loan against gold. Do not keep gold asset lying with you idle. Make use of them to avail a loan that can be used to meet important or pending expenses.
About Loan against Gold
Loan against pledged gold assets enables you to avail loan money, which can be used to meet expenses that are immediate and urgent. In order to avail the loan, you need to pledge your gold ornaments at the bank. It is also possible to take a loan against coins which have been issued by the bank from which you are taking a loan. The minimum amount that will be sanctioned is Rs. 10,000 and the maximum is Rs.20 lakhs, but this value can change from bank to bank, so check up on them before applying for a loan.
Key Features of Loan Taken Against Gold
The lender will not give money equal to the entire value of the gold pledged. They will retain some twenty to twenty-five percent of gold value with them, and the remaining will be disbursed as a loan. The time period for repayment is two and a half to three years. It is to be noted that people who already have an account with the bank can only avail a gold loan, and it is not a product offered to everyone. The bank or lender will check the value of the gold pledged before disbursing loan. A check will also be done on the gold’s purity so that its real worth is ascertained, based on which loan amount is sanctioned.
The biggest advantage of taking a gold loan is that it carries with it a low-interest rate. So, the amount of money that you will be paying to the bank in terms of principle, plus the interest paid every month, is affordable, and it is one of the few loans which are not expensive, enabling people to get the much-needed finance, but without worrying about how they will repay it back due to high interest. It takes very little time to get the loan amount sanctioned. The documentation process is simple and will be finished quickly, after which loan amount will be disbursed into the account.
As a part of the application process, it is vital to fill and submit the application form with appropriate details. Two photographs and identity, address proof in the form of PAN card or Aadhar is needed. This loan can be availed by employed as well as self-employed people. The only eligibility is that the person availing the loan must be above twenty-one years of age and must show proof of having a steady income.