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Gold being a precious yellow metal can be of no use by keeping idle at home. They can now be invested for a secured loan to meet the financial requirements of the family. The low interest rates offered by the banks provide a source of encouragement for the people in need of money. In India, gold is considered as a precious yellow metal for every family. It has also acted as a safe asset. There are a lot of investments carried out in Gold, but it can be called as a dead investment as there is little or no scope for benefits by keeping the Gold idle at your home. Gold is one such metal that can be easily converted into liquid money. Over the years, gold has been considered to be a suitable mean to get a loan. These loans help in fulfilling family expenses such as education of their children, marriage for the son and daughters and various other needs. This way of securing loan has been carried out in a flourish in the recent decade. The loan granted against gold has time and again proved to be a much safer and easier way for the people to get money. Along with the loan in terms of funds, this method has also given that added protection and security. It has proved to be a good opening for banks as well as clients. Even though this concept has been one of the oldest in the Indian Financial Structure the interest rates were set extremely high making the borrower pay more than the loan amount. The introduction the private banks, nationalized banks and other financial companies in the country are now offering them at very attractive interest rates. The commercial banks in the country are considered as a boon in the Indian Economy. It proved to be of great help to the people who required loan on a short term and regular basis. However, there are no specific types of gold loans available. The ease of securing a loan through gold is very easy today. The procedure starts with the client offering jewellery to the bank or an NBFC. The gold is then weighed by the lender in terms of the purity. The assessment charges are generally borne by the client. Once the assessment is over, the paper work for the finance is carried out. There are a certain set of documents required for the completion. This may include general proofs like Pan Card, Residential proof and some other things. The provider will then give a credit which would not be more than 80% of the price of the jewellery. The gold can be acquired back by the lender only when the loan is repaid. The salient features of gold loan system are: • It is a secured loan. It is important to repay the loan back in time. • The tenure of this loan is shorter than other loans in the market. The duration will be of 2-3 years. • The loan amount given is dependent on the purity of gold. • Irregular EMIs can result in penalty charged by the banks which can be around 2% This loan system has time and again proved to be beneficial for all families requiring funds for a short duration. This loan can have advantages when compared to other loan methods. • Less documentation is needed. • Low Interest rates are offered by the banks around India • The processing time of the loan is much lesser than the rest. • The attachment people have to the gold serves as an encouragement to repay the loan back and on time. • The Interest has to be paid at the end of the tenure. This loan can serve as the last resort to any financial needs within a family. They offer the people by being immediate in nature. They prove to be the right way to come out of any financial shortage.
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gold loan, gold loan interest rate, gold loan calculator,
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