Gold has long been cherished as a valuable asset in India, not only for its cultural significance but also for its potential to offer financial security. In times of unforeseen expenses or urgent financial needs, gold loans have emerged as a reliable and accessible borrowing option.
Gold loans do not impose any restrictions on the use of funds. Borrowers are at liberty to allocate the loan amount as they see fit, whether for educational purposes, medical emergencies, business ventures, or debt consolidation.
Gold loans also extend their benefits to a wider range of individuals. Unlike traditional loans that heavily rely on credit scores and financial histories, gold loans are also accessible to those with poor credit scores or no credit history at all. With a goldloan app having made it easier than ever before to get one.
What is a gold loan?
A gold loan is a secured form of borrowing where individuals can obtain funds by using their gold jewellery as collateral. It provides quick access to cash without the need for a credit check, making it a popular option for those in need of immediate financial assistance.
The borrower has to repay the loan amount along with interest to the lender within a specified time frame, failing which the lender has the right to sell the pledged gold to recover the outstanding amount.
How to calculate a gold loan?
Gold loan calculators are essential tools that help borrowers calculate the amount they can borrow based on the value of their gold holdings. These calculators are made available by online gold loan providers like Bajaj Finserv, Muthoot, IIFL, and Manappuram who take into account the weight, purity, and current market prices of gold to determine the loan amount that can be sanctioned.
What are gold interest rates?
The gold loan interest rate in India is typically lower than personal loans and other types of loans as they are secured loans. However, interest rates may vary between lenders, so it’s important to compare rates and choose a lender that offers the best deal.
How to apply for an online gold loan?
You can easily avail a gold loan if you are an Indian citizen between 21-70 years of age. You just need to have any one of the KYC documents (Adhaar card, pan card, voter id card, etc.)
To apply online, follow these steps:
1. Click on the “gold loan” option under the “loans” section on the homepage.
2. Fill in the required details like loan amount, location, and contact details.
3. Upload a copy of your KYC documents like Aadhaar card, PAN card, etc.
4. After submitting the application, a representative will contact you to verify your details and schedule a gold valuer’s visit to evaluate your gold ornaments.
5. Once the gold is evaluated, the loan amount will be disbursed to your account within 24 hours.
How can a loan app help us?
Using an app or an online platform can also help in tracking the loan status, repayment schedule, and other important details related to the loan. Furthermore, most gold loan providers offer flexible repayment options allowing borrowers to choose the tenure and payment structure that suits their needs.
Conclusion
Gold loans in India are an excellent financing option for those in need of quick access to cash. However, borrowers must use a gold loan calculator to determine the loan amount, compare interest rates, and choose a reputable lender to avoid any complications. With the advent of online gold loan providers, availing of a gold loan has now become more accessible and hassle-free than ever before.
