What is gold loan?
Nowadays, for a common man it has really become impossible to fulfill all his dreams of a luxurious life. To fulfill such dreams, most of the banks offer financial assistance or different types of loans to the individual. Gold loan is one such type of loan with certain types of advantages over other types of loans.
In simple language, gold loan is the loan or financial assistance given by the bank or by a financial company against the total gold owned by you. From recent past, this yellow element has emerged out as sole winner of the investment market. Now, with the facility of gold loan, it has added another color to its wings.
In India, gold is seen as the synonym for wealth and most of Indians love to make some investment in the gold. If you also among those people who owned a sufficient amount of gold and in a need of money then why to search for other options when you can get an easy and fast loan on your gold?
Benefits of gold loan
There are several advantages of gold loan over other types of loans available in the market. Let us have look on each possible benefit of this loan in detail.
1. Low interest rate of gold loan
Most of the banks offer gold loan at an interest rate of 12-16% which is significantly lower than the other types of loans. This is the major advantage and chief reason to opt for this loan.
2. No income certificate needed for the gold loan
If you are not a salaried employer but stills need money for your any sort of requirement then this loan is the best solution for you. As for applying to this loan you don't need any sort of income certificate. Only thing which is needed is your gold which will be kept by the bank in a safety locker till you pay your amount of the loan.
3. Speedy and comfortable sanctioning of the gold loan
Sanctioning of the gold loan does not require months or days instead it is sanctioned in few hours. You will be given an amount of up to 80% of your gold amount either through check or will be deposited in your account as soon as you will hand over your gold to the bank.
The one more thing which is responsible for the speedy sanctioning of the gold loan is that it does not require the hefty formalities of too many documents.
4.You can avail gold loan even if you have bad credit record
The question which strikes in the mind of those people who have their name in bad credit is that can I avail gold loan if I have bad credit history? The answer to this is simply yes. The bank has nothing to do with you credit history if you are filing an application for this loan. The only thing which matters to the bank while sanctioning a gold loan is the amount of gold you possess.
Procedure for availing gold loan
Now, the question which must be hitting in the nerves of your mind is that how to avail gold loan? The procedure for applying to the gold loan is as simple as asking for graduate to count from one to hundred. Here is the detail of procedure for applying to the same.
1. Decide the local bank nearest to you which provides the facility of the gold loan.
2. Go to the nearest bank with your gold and with your permanent ID proof and your passport size photographs. The ID proof can be your employer identity card, your adhar card, voting ID, driving license or any other such type of document which confirms your identity.
3. Meet the bank manager and tell him about your wish or need of loan against gold. Bank has authorised some gold experts for verifying the authenticity of the gold and assessing the price of gold or bank will ask you to carry the assessment of your gold from an expert and to submit the certificate of the same. This whole process requires hardly half an hour. The expense for the assessment of your gold is most of the time have to pay by you.
4. Meanwhile during the assessment, you can complete the other formalities of disbursement of your loan like payment through check or onto your bank account etc.
5. Once the assessment of your gold is completed, you can have your sanctioned amount in your hand through the mode opted by you.
The whole process of availing gold loan takes less than 1 hour and which is the most significant part of it.
My last words of advice to you is that in India this yellow element is always taken with the matter of the pride and this is the chief reason why most of the people feel shy to have gold loan. but now the time has changed and when this loan is providing you such a great facility at lower interest and with other advantages then why not to avail it? Think over it and if you own a gold and in a need of sudden money then you should definitely go for the gold loan instead of seeking help from others.
More articles: Gold Investments