Everything you want to know about the Gold Loan:
This is as simple as the name sounds. It simply is the loan given against deposits of gold, where one pledges his gold to a bank or any financial institution for the cash loan, and could instantly be obtained. The quality of the gold is checked and an established percentage of the financial value is given to the depositor.
This is something that is followed by all the banks and it is a very popular way to get the quick loan in no time. The documentation that is required is very less and you can get this approved in quick time that is the best part.
The gold loan is one of simplest to get as it is a secured loan and based on the gold your deposit in the bank you are given the loan. Hence, this is a very popular product as each home in India has got gold and getting the loan is not more difficult.
India is a country of many contrasts that is depicted in its national flag. And just like the flag, India is a nation whose pillars are built on strength and also on courage. India has emerged from her various troubles and woes to become the fastest growing economy, thanks to the strength and courage of her people. Gold loan can help you fulfill your emergency needs and give you the money at the right time quickly and that is the best part. The documentation that is required is also very less and that makes things easier.
A bank is a financial institution that uses deposits in its reserves for lending activities. Banks are also a pivotal backbone for economic growth of any given country. And India isn’t an exception. There were means and ways through which money was transacted before banking became the norm. Money was also availed to people through Hundies which were issued by money merchants in those days. Hundies were orders directing one person to pay the person indicated in the order. There were mainly used as cheques that were regarded as bills of exchange. Hundies were also use for three purposes.
Transfer of funds from one institution to the other
Bills of exchange
But things have changed since then and now loans are the important part and gold loan are very popular with Indians.
Gold Loan Eligibility:
- Even the unemployed have also the eligibility of securing a gold loan.
- No requirement of the history of salary.
- No requirement of a history of the credit card.
- Whereas the bank or financial institution may need you to prove that the gold actually belongs to you.
- Minimum application age for gold loan in India is 21 year and maximum age is 70 years.
- The deposited ornaments must be within the range of 18 to 24 gold karats.
- You may have to have an account with the bank.
Calculation of loan eligibility amount:
Generally, about 80% of the value of the deposited gold is given to the depositor.
Down payments are not required, as the gold deposited is enough collateral in itself.
- Most of all gold loan schemes have a repayment span of 12 months.
- Some institutions offer a repayment scheme up to a stretch of 36 months.
Interest rate bank wise:
Within 12.5% to 26% of interest rate is tagged on to the gold loan, depending on the tenure of payment, loan size and loan to value.
Top five banks providing credit loan:
- 1 Everything you want to know about the Gold Loan:
- 1.1 This is as simple as the name sounds. It simply is the loan given against deposits of gold, where one pledges his gold to a bank or any financial institution for the cash loan, and could instantly be obtained. The quality of the gold is checked and an established percentage of the financial value is given to the depositor.
- 1.2 Gold Loan Eligibility:
- 1.3 Calculation of loan eligibility amount:
- 1.4 Down Payment:
- 1.5 Tenure years:
- 1.6 Interest rate bank wise:
- 1.7 Top five banks providing credit loan: