Gold loans are the personal borrowing method with the quickest growth rate in India. Taking out a gold loan is considerably faster than getting a regular personal loan, and it’s also more inexpensive because the gold loan interest rate is lower. The procedure for obtaining gold loans is likewise becoming quicker and easier. Modern fintech-enabled gold loan companies have raised the bar for customer-friendliness.
You can obtain a loan against gold without going in person to a branch. This is very helpful for individuals who want the loan quickly or cannot visit the branch for any other reason. Also, a borrower needs to be especially cautious and alert when transporting gold assets outside. The executive in a doorstep gold lending plan rates your gold at home and transports it securely to the branch.
You may be able to get a gold loan as a short-term financial instrument if you have a collection of gold jewellery. Many households have gold jewellery that is passive and is only worn on rare occasions like weddings, parties, etc., in a few years.
Such passive assets can be temporarily used to cover short-term cash needs. Gold jewellery is accepted as security or collateral by all lenders. However, things like gold bars, gold cookies, or gold utensils are not accepted as collateral.
A lender holds the gold jewellery in a secure vault and lends the owner of the jewellery money as collateral. Gold loans often have a significantly shorter period of up to two years, in contrast to other loans. Additionally, gold loans come in considerably smaller denominations, starting at Rs. 5,000.
One can visit a branch of a lender with basic credentials like an Aadhaar, but gold jewellery is the key. The service staff will weigh the jewellery and estimate the maximum loan amount that may be obtained depending on the current gold rate. The loan can be disbursed instantly if it is acceptable.
Mentioned below are some easy steps to take a gold loan:
Step 1: Assess your loan amount eligibility based on the value of gold jewellery that you own using an online gold loan calculator.
Step 2: Choose a lender that offers gold loans with a range of user-friendly benefits and features.
Step 3: Visit the website and navigate to the gold loan page.
Step 4: Select and open the online application form.
Step 5: Fill in your first and last name as it appears on your PAN card.
Step 6: Enter your 10-digit mobile number and select your city.
Step 7: Enter the OTP sent to your registered mobile number and submit the application.
Step 8: From the options presented to you, choose an appointment time at the closest branch office, and bring your gold jewellery there in person for evaluation.
You can also apply via a phone call or a branch visit. Let us also look at some of the common features and benefits of a gold loan.