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Amongst the availability of several loans in the market, gold loan is the ‘most wanted.’ Irrespective of the locality/ geography, people are more gravitated towards collecting assets in the form of gold. Zeroing it down to India, and with the wedding season spread all across, gold is a viable option for a quick fix. In that case, the gold loan comes handy for the replacement of liquid cash. Another the best option is to sell gold rather than getting gold loan. Also Getting a gold loan is a difficult and long process as compared to Cash against Gold which gives you the actual value.
The procedure of the Gold loan involves, pledging your articles as collateral, which has been an age-old practice. But, in recent developments in technology, the procurement of Gold loan has become more ethical and transparent. Previously, a gold loan used to be provided for about 30%-50% of its loan price. As of now, it has been brought down to 1% on a monthly basis.
Listed below are factors for those applying for Gold Loans,
1. Easy to get
Gold Loans come under the secured category. Collateral is not required. Whereas, for Home and Personal Loans, you will have to present income certificates, along with the bank statement and IT returns.
2. All-in-one
Serving as a multipurpose, Gold Loans can be used for many purposes. It does not come with restrictions, due to which an innumerable amount of people are claiming it even today.
3. LTV is high
As a customer, you need not worry about the asset value. The banking institution takes up 75% of the gold value. NBFCs take 90%.
4. Convenient to repay
Like the tenures can be set as per your convenience, so can the repayments. Any consumer would find it approachable if the repayment period is lenient.
5. IDs only
You will only have to provide documents pertaining to the ID and address proof. The ID includes any of the Know Your Customer documents.
6. Credit unaffected
Your CIBIL score will not remain affected until you are regular to repay the amount according to the tenure opted.
7.Calculate easily
With the current situation have limited the possibility to step out, just a click away can fulfil your requirement of a Gold loan.
8. Safety
The gold that is pledged remains safe with the bank. There is no risk of theft or robbery from the bank as the bank makes an items list when the bank collects the ornaments.
Currently, about 30%-40% of the market is under the control of NBFCs. The Reserve Bank of India (RBI) will lead to the expansion on a larger scale and the in-built facility of information in rural areas.
If you are applying for a Gold Loan at Bajaj Finserv, the eligibility criteria follow,
- You shall either be a farmer, trader, salaried or self-employed professional
- Age: 21-70 years
Documentation required: KYC Documents.
Features incorporated are;
- Loan Value is high: Provides an amount of up to INR 20 Lakhs
- Evaluation: It performs an in-house evaluation, with the help of a ‘carat meter.’
- Safety: Strong rooms with top-class security protocols enhance safety.
- Prepayment (partly): There will be no part-prepayment or foreclosure charges that will be imposed.
- Payment: This will make the loan procedure a lot more flexible.
- Part Release: This is defined as the facility to withdraw your gold articles.
Whereas, for Axis Bank, the eligibility criteria includes,
- Age: 18-75 years
The documentation required:
KYC Documents can be any of the following,
- Aadhar card/ driving license, passport, ration card, birth certificate.
Given below are banking institutions providing Gold Loans with Gold loan interest rate and more,
| Banks | Rate of Interest | Fee | Tenure |
| State Bank of India | 7.50% | 0.50% | 36 months |
| Manappuram Gold Loan | 12.00% | INR 10 | 12 months |
| Yes Bank Gold Loan | 10.99% | 0.75% or INR 500 | 36 months |
| ICICI Bank Gold Loan | 10.00% | 1% | 12 months |
| Federal Bank | 8.50% | NA | 12 months |
| HDFC Bank Gold Loan | 9.90% | 1.50% | 24 months |
| Muthoot Gold Loan | 11.99% | 0.25% – 1% | 36 months |
| Indusind Bank Gold Loan | 10.00% | Up to 1% | 12 months |
| Rupeek Gold Loan | 10.68% and above | As per the bank | 6 months |
Loans are a personal requirement as per the need of the borrower. The loans can also be a lot of hassle and are something which can easily bring the borrower into a debt heap.
Gold Loan is one in which money is received by the borrower at his or her convenience. It comes at the tenure and the market price of the very day the loan is applied for. There is also minimal paperwork which it accompanies. So if you are in any money crunch, and in need of quick cash, the gold loan is the best option to choose from.
And if you’re opting for a loan, Bajaj Finserv is the best in the market to opt for since it looks for the borrower to provide them with their easiest loan and which is hassle-free.