Gold loans are the perfect option when you are in urgent need of funds, whether for planning a wedding, paying for your child’s education, a medical emergency or for a new business venture. Features such as quick approvals, easy repayment options, a part-release facility and more, make gold loans extremely popular. Additionally, gold loan interest rates are comparatively lower than interest rates on unsecured loans.
Read on to know what makes gold loans a convenient option to get instant funds.
High loan amount
Gold loan is a popular credit facility that offers high loan value in exchange of 22-karat gold jewellery. Reputed lenders like Bajaj Finserv offer loans starting from Rs. 5,000 up to Rs. 2 crore with interest starting at just 0.83% per month. As per RBI guidelines, you can get up to 75% of the total worth of your gold jewellery in the market.
You can also use your preferred lender’s online gold loan EMI calculator to calculate your interest instalments based on the weight of your gold jewellery or loan amount and monthly repayment options before taking a loan.
Multiple options to repay
Gold loans in India come with multiple repayment options. Here are a few repayment options that leading banks and NBFCs offer in India:
● You can repay the entire interest amount at the beginning of the loan tenure and pay the remaining principal later.
● You can opt for monthly, quarterly, or yearly interest payments and the principal amount at the end of the loan tenure.
● You also have the option to repay the principal and interest via affordable instalments.
Reputed lenders also charge minimal or zero foreclosure fee for gold loan. So, you can repay a part of the loan in advance or pay the entire amount at no extra charges, which reduces the overall loan servicing expenditure.
Easy application process
Since gold is a tangible collateral, lenders easily provide such loans with minimal document verification and lesser processing time. You must be an Indian citizen aged between 21 to 70 years while applying for the loan against gold.
To apply for a gold loan online, you can simply follow these simple steps:
Step 1: Visit the website of your preferred lender and navigate to the gold loan page.
Step 2: Select and open the online application form.
Step 3: Fill in your first and last name as it appears on your PAN card.
Step 4: Enter your 10-digit mobile number and select your city.
Step 5: Enter the OTP sent to your registered mobile number and submit the application.
Step 6: Set up your appointment at the nearest gold loan branch office, from the options displayed to you, and bring your gold jewellery there in person for evaluation.
‘This article is part of sponsored content programme.’