Indianmoney Facebook Indianmoney twitter Indianmoney LinkedIn Indianmoney Google Plus Indianmoney Youtube Indianmoney Instagram Indianmoney Medium
 
 

" Why lock your gold in the cupboard?
Unlock its value with a gold loan. "

Gold Loan

What is a gold loan?

You can avail a loan from a bank or an NBFC by pledging your gold. You can pledge your gold coins or gold jewelry and avail a gold loan from a bank. The gold has to be of purity 18-24 carats.

You can pledge only gold jewelry to avail a gold loan from an NBFC.

The amount of loan you avail

In India tradition demands that gold be collected and accumulated in the family. This means you can easily avail a gold loan with this family gold. You get an LTV (Loan to value) ratio of 75%.You get INR 75 for every INR 100 you pledge.

Why avail Gold Loan?
Low Interest

Low Interest

Gold and gold jewelry as collateral, mean lower Interest rates compared to a personal loan. Processing time is very quick.

No Credit History

No Credit History

Banks do not check for income and salary proof. Unemployed persons can also avail a gold loan. Banks do not check credit history.

High Margin

High Margin

You get up to 75% of the value of the gold or gold jewelry, pledged for the loan. Speedy sanctioning of loans.

Easy Repayment

Easy Repayment

You pay only the interest on the loan amount borrowed. Principal repaid at the end of the tenure.

Key factors to consider for Gold Loan

Rural areas

If you reside in a rural area you can easily avail a gold loan from an NBFC (Non Banking Financial Company).

The documentation is much faster if you avail a gold loan from an NBFC rather than a gold loan from a bank.

Remember: The NBFC charges you a higher rate of interest on the gold loan than a bank. The interest charged by the NBFC could be around 22-24%.

Another benefit you get from availing a gold loan from an NBFC, is you have to only pay the interest amounts regularly on the gold loan.

You pay the principal (Borrowed amount) back, at the end of the term (tenure of the gold loan) and reclaim your pledged gold jewelry.

There are no processing charges and pre payment penalty, if you avail a gold loan from an NBFC.

Related Articles

08 June 2016, Wednesday

When Should You Go For A Gold Loan?

You never know when trouble comes knocking at your door. In times of crisis, you need money in a hurry and don’t know where to go looking for it. This is when you look towards a financial product, which can give you money in an emergency…The humble loan. Loans are of different types wit...

29 December 2015, Tuesday

Crash In Gold Prices Has Gold Loan Companies Worried

Money is in shortage. But this is a problem most of your fellow citizens, if not the whole World faces. This is when you remember your family gold jewelry. You can pledge it for a gold loan. After all what are loans for? So what is a gold loan? If you have gold jewelry, you can pledge it with ...

11 August 2015, Tuesday

Need for a Gold Loan

There is a famous saying "Interest on debts grow without rain." The easiest way to fall into a debt trap is availing a loan with a high interest rate.You definitely need a gold loan. So how do you prevent yourself from falling into a debt trap? You use your greatest weapon to save on your intere...

Most Read Articles

18 July 2012, Wednesday

How to Make Claim on a Health Insurance Policy

Formalities for a health insurance claim You can make a claim under a Health insurance policy in two ways : On a Cashless basis and A Reimbursement Claim On a Cashless basis : For a claim on cashless basis, your treatment must be only at a network hospital of the Third Party Administrator (TP...

14 March 2014, Friday

ELSS - Utilizing the Power of Compounding

As the name suggests ELSS invests the whole corpus in equities. Proportions as high as 80-90% of equities are found in an Equity Linked Savings Schemes. It is a special kind of mutual fund that qualifies for tax benefits. Basically Equity Linked Savings Scheme is a mutual fund with a lock in peri...

07 January 2014, Tuesday

Why One Must never Neglect Estate Planning

One of the most common reason for family feuds in India as in the rest of the World is faulty estate planning. Estate planning is a neglected topic in India mainly because of the emotions attached to it. A common reason people neglect to make a will or indulge in estate planning in their younger y...

Get It now!

How about our new look!

 
Great!
Mm.. Ok
Bad