Blog

A vehicle advance is one of the simpler credits to work with. This is valid for both the individual applying for the advance just as the bank or monetary organization loaning the advance to you. This is on the grounds that a vehicle credit is a gotten advance - with the actual vehicle filling in as the insurance which is on the name of the loan specialist until the reimbursement is finished.

Banks like the Vijaya Bank Car Loan Interest give a choice to move a vehicle advance to another person in a condition where you are moving the obligation regarding the vehicles as well. Despite the fact that there is a choice to move your vehicle advance, is anything but a basic cycle.

A vehicle advance trade is an inconvenient cycle as it not simply anticipates that you should perceive a monetarily stable borrower for a development trade yet also anticipates that you should move your vehicle enlistment and insurance for the new borrower.

One needs to intentionally review the costs identified with the development trade which may consolidate taking care of charges charged by the bank for the development trade similarly as vehicle selection move and vehicle assurance move charges. You ought to understand that all of these charges may together make the pattern of advance trade an expensive, unviable proposal for the buyer; the buyer may request bestowing the charges to the vendor. A Car Loan Interest Rate is considered presumably the most minimal contrasted with its options as it begins at around 7.5% which is incredibly modest can is accessible for different residencies relying on your reimbursement plan.

Prior to considering moving the credit to another person, you should ensure that you have encountered the nuances of your high-level files. Your advance record archives will as of now have it expressed if there is a likelihood to move your advance to another person. On the off chance that you can't find this information, you can contact your bank and get a clarification of the options of the move and the cycle. In case your bank has unequivocally referred to that the development isn't transferrable, by then, it will be difficult to move it. Nevertheless, in case you can't find this information in the development record, you can contact your manage account with whom you took the development and check if a serious decision is open with them.

The new vehicle buyer (borrower), who will accept authority over the vehicle advance, should have had kept a fair monetary record. Tolerating that the primary development understanding grants the trading of a vehicle advance to another person, one needs to perceive a buyer who has a consistent compensation, strong record, and all the supporting reports as pay bits of proof, home confirmation, etc the bank will do a credit assessment of the individual buying the vehicle (new borrower) from you and will underwrite a development exactly when it is content with as far as possible and history of the borrower.

The current owner necessities to move the enlistment support of the vehicle close by the development to the buyer. This cycle should be begun by visiting the RTO (Regional Transportation Office). They will help you in moving the duty regarding the vehicle to the buyer. The RTO will force charges on the trade cycle. At the point when the record check is done by the banks and other documentation measures are done, the new owner is given an 'Enlistment Certificate' in his/her name.

The most preferred option is to close your credit record by settling the development early and thereafter selling the vehicle. Regardless, in case you can't repay the development, there is a choice to move the development to the accompanying person. To have the choice to move your vehicle in advance to someone else, you need to surrender the obligation regarding the vehicle to them moreover. Banks may allow you to take the heaviness of a vehicle advance off your shoulders by giving it over to someone else on the off chance that you meet their necessities.

Also read this: Which is a Better Option- Bank Account or NBFC Account 

Applying for a car loan is one of the most accessible processes. You can simply get a car loan by following some basic steps. Almost 85% of the banks and Non-Banking Financial Companies (NBFCs) in India offer car loans. Although each lender has its process designed to apply for a car loan, the basic procedure and requirements are almost the same for every bank.

There are a lot of variables that should be checked before applying for a car loan. The first and the basic one is to narrow your eligibility criteria. You can quickly check your eligibility criteria by visiting the bank or checking their online website.
The other factors that should be kept in mind are:-

Credit Score:- Check your credit score and then compare it with the bank's requirement. If your credit score is low, then you'll have to make efforts to bring it up. But if your credit score is high, you'll get many benefits, and you can even negotiate the interest rate with the bank.

Repayment:- Check your repayment structure and the tenure you've selected. You can calculate your EMI along with your budget using some online tools like a Car loan emi calculator and then choose the right option for you. However, it is recommended to keep your loan tenure as short as possible to avoid paying more interest. 

Loan Amount:- Always choose the loan amount according to your repayment capacity and income. Don't choose an amount that will drain your income or budget too much.

Interest Rate:- There are a lot of banks that offer car loans. So it's better to make your decision after comparing multiple banks along with their interest rates. And then choose the one that provides the lowest interest rate.

After you've decided these things, it's time to apply for a car loan. There are two methods that you can use to apply for a car loan. The methods are:-

Online Application:- The first option is to apply for a car loan using the bank's online website. It is so convenient that you can get your loan approved at the comfort of your home. You get the flexibility to compare and then choose the right one for you. You can also track your application process easily using their 'track' feature. Another advantage of online applications is that the whole process is speedy because you're doing it online, and you don't have to wait in line for your turn. Many banks (like Bank of india car loan or State Bank of India) have created mobile applications for these purposes.

Offline Application:- This type of method has its advantage. The first advantage is that you get to have a verbal conversation with the bank, and you get to present your case more efficiently. So you can talk with the bank manager, and then you can find a solution for your problems.

So after you've selected a method that you'll use to apply for a car loan, then you'll have to move ahead with the procedure.

Application form:- You'll have to fill the application form of the desired bank. Fill out all the necessary details and other requirements.

Documentation:- The next step is to submit all the necessary documents required by the bank. These documents will help you to get through the verification process quickly. Once you've attached all the required documents, then you can submit the form to the bank.

The documents required are:

Identity proof:- Aadhar Card, Pan Card, Passport or Driving

License Income Proof:- Form 16, Bank Statement or Payslip

Address Proof:- Electricity Bill, Telephone Bill or any other Utility

Bill Verification:- After your document submission, the bank will take 2-7 business days to verify your documents and to confirm whether or not your application should be approved. 

Disbursal:- And once the bank has approved your application, the loan amount will be transferred to the dealer's bank account within 24 hours. The bank may also provide the dealer with a cheque or a DD ( Demand Draft), but it usually depends on the bank.

Conclusion

There are a lot of banks that provide car loan facilities. So choose your decision carefully after comparing all the options available in the market. You can even consult a financial advisor for help, but make sure that you wisely decide.

Read More:- Car loan availing process offline online 
 

Have you ever wondered how a financial institution or application gets to know in an instance that you were late to pay the EMI of some loan you took maybe years back? Or maybe you have been paying all your dues on time which made your credit score rise high and makes you eligible to avail special rates on any loan service. All of this is possible because of my Credit score. The centralised storeroom for all financial lending records or all individuals availing such facilities in our country. A credit score of 700 or above is generally considered a good score and a score of above 800 is considered excellent. But how does having a good credit score make a difference? Well, suppose you are planning to avail yourself of a car loan and your contact to any bank or financial lending institute the first thing they will do is not to check your documents or anything but to check your eligibility to avail the loan through your credit report. If your credit score is good according to the bank’s policies then you are eligible to avail of the loan and if you are having a low credit score the bank might reject your loan application. Also if you are having an excellent credit score you might be offered a loan at a lesser interest rate than others. This happens because you are having a credit score that is higher and you are not at a risk to default on your future payments to the bank so they provide you with a better interest rate to promote you to avail the loan from them.

Yes Bank for example has some of the most convenient and affordable interest rates to attract borrowers. They offer loans for two-wheeler, four-wheeler and pre-owned vehicles to customers with simple, quick and easy documentation with doorstep assistance to serve better. Also just like every other bank they too check your eligibility to avail of the loan by cross-checking your credit score. A good credit score is more likely to get you a better offer on loans. A good credit score is also a factor that could determine the tenure of your loan. In short, a good score means you are a reliable and timely due payer which are the qualities that are most desirable by banks. Paying your EMI’s on time contributes to the growth of your credit score and vice versa. Every EMI payment and defaults are recorded in the credit score calculation. If a person defaults too many times on his/her EMI’s the credit score department might blacklist the person from availing any loan from any lending institute to prevent further defaults and subsequently even after a few defaults if the person gets back on track and pay dues timely the credit score will start improving. Therefore, a credit score is very dynamic. Just by getting to know your credit score, you can interpret your credit availability. With a good credit score, one can also avail of special credit cards which are highly rewarding and come with many benefits and even your existing credit card limit can be increased in case of your credit score improving. Borrowers with a good credit score are also provided with a pre-approved loan offer. Generally, banks offer pre-approved loan to their existing customers which have a good credit history. Therefore to avail of all these exclusive offers and rewards having a good credit score is crucial.


Conclusion: 

A credit score is one of the most important factors that determine your eligibility and offer of a loan from any financial lending institute. Having a good score is important to avail not just long term loans but also short term and personal loans too. A credit score is like a three-digit financial report card that can tell your past and present lending reports.

Also read this: Unique Features Of Banks 

A car loan is a loan where a buyer borrows the money from the lender and returns it in fixed monthly payments. While taking the car loan the buyer agrees to pay back the full loan amount and also the interest amount. All car loans are of specific time. Mostly, the car loan is fixed at 36,48, 60, or 72 months. The buyer can choose the tenure of the loan as per the convenience. Car loan can also include a variety of fees and taxes which are automatically added to the loan amount. After signing the car loan agreement the borrower gains the right to drive the car and also possession of the car. Technically, the lender or the bank owns the car until the borrower has finished paying off the entire loan. At first the car loans were of a short period of time from 24 months to 36 months. But In recent times, the period has increased. Now people can take car loans up to 72 months. Like the other loans, car loans have also increased its popularity in recent years. Many people are taking car loans to buy new cars.

ICICI Car Loan can be availed easily with minimal documents required. ICICI banks offer an interest rate on a car that ranges between 10.75% to 12.75%. Also, the interest rate offered on new cars is 15.50%. Key features of ICICI car loan are the bank provides longer tenure up to 7 months, minimal documentation, and low processing fees. Documents required for car loans are application forms, KYC for address proof, ID proof, age proof, proof of employment stability, and income proof.

Benefits of car loan:-

No collateral needed: For car loan collateral is not needed. This is because in car loans the car only serves as the collateral. If the loan amount is not paid by the customer the car can be seized. The tenure can be selected as per the convenience of the buyer. The tenure can be for a longer or shorter duration as per the needs of the buyer. Fast loan processing: With minimal documentation the processing of the car loan is easy and can be done in a shorter time period. Lower interest rate: As compared to other loans, car loans have the lower interest rate. Flexibility to choose the payment mode: The buyer can choose the payment mode as per the convenience. Flexibility in choosing the interest rate options. Additional collateral is not required while taking a car loan. Prepayment facility is available while taking a car loan.

Conclusion

Car loans can be very easily availed in today's time with minimal documentation. Car loans have become very common these days. As many people are turning towards banks or dealers for car loans. Nowadays, in recent trends people are also buying cars online. As shopping for a car online allows consumers to compare interest rates from a wide range of lenders. Car loans have now made it easy to own a car simply by applying for a loan which can be easily paid in monthly deposits. There are several ways one can buy a car from the borrower. A buyer can borrow a car through direct lending and also through dealership financing. You can also compare terms from different lenders or the banks and can avail the best possible deal for buying a car.

Must Read:- HOW TO GET LOWER INTEREST RATES IN A CAR LOAN? 

While opting for any finances, it is highly suggested to take advice from a financial tech or guru. To reduce the chances of loss, one should consider investing or borrowing money from a reliable source. Thus, a Car loan is readily available, but one should do adequate research before availing them.

 What is the interest rate on the automobile/Car loan?

An individual should consider the first thing before availing of a Car loan is its interest rates and processing time. One can negotiate rates with banks when are you on good term with them. Some banks might offer less than 9% per annum charges as well.

What is the total amount that the bank is financing?

A car loan can finance upto 90% value of the car and sometimes might offer 100% value of the car depending on the bank policies. Generally, 80% value is opted from the bank by the applicants, and 20% is financed independently. An applicant should consider his/her repayment capability before availing of a loan and should estimate the amount of EMI using an EMI calculator.

What is the ultimate sum I'll have to pay for the car?

Apart from the car loan interest rate, the other factors can cost a lot, such as the processing fee, documentation charges, prepayment options, foreclosure charges etc. This enhances the total cost of the vehicle. Using the automobile loan EMI calculator, the borrower should determine the total amount required to pay during the term. These specific factors, such as principal amount and tenure, should be considered to get a low-interest loan for your automobile.

How long should I take out a car loan what will be the down payment options?

Applicants should recognise that their automobile loan will be with them for some time and that they will have to pay a monthly EMI for years. The applicant must do smart financial planning to lessen the financial burden of the debt. Applicants should not agree to a more considerable EMI amount, which may place an enormous financial strain on their daily budget to maintain the tenure on the lower side and save on interest. A balanced EMI with a reasonable duration that does not place undue strain on wages should be adopted and avoid long term loans.

Can I make early payments without incurring a penalty?

This is a critical question that every borrower should ask his lenders when applying for a loan. When a borrower wishes to pay off his obligations before the term expires, many banks apply prepayment penalties, foreclosure penalties, and other fees. In such cases, you should always select a bank that charges the bare minimum.

What are the additional recurring charges in the car loan?

There are many charges included in the approval of a car loan where one has to pay processing fees, documentation charges, foreclosure charges, credit report charges, application fee, late repayment penalties etc. One should always estimate these additional charges beforehand while repaying the debt. There are some hidden costs, which banks impose upon loan approval that should also be considered.

What documents are needed to apply for a car loan?

An applicant must present a variety of documentation to demonstrate to the bank that he has the ability to repay the loan amount in order for the loan to be approved. Even though the applicant's credit score demonstrates his trustworthiness, banks want further assurance and verification from the borrower that he is financially secure enough to repay his obligation. The following documents such as KYC documents serve as confirmation of identity, residence, and age, Bank statement, Evidence of business stability/ownership, Proof of job security as employability certificate or experience certificate from the present employer, Contracts of partnership. Income documentation, such as Form 16 or the most recent wage slip, income tax return with a comprehensive audit report for the previous two fiscal years, and so on. One can submit business proofs or bank statements of the business to avail of a PNB car loan.

Conclusion

An individual must always research and know the whole loan approval before opting for a Car Loan. The automobile details must also be considered as it is deciding factor in the loan approval.

Also read this: Why Car Loan is the best option in finance? 

A person need a personal vehicle to avoid the traffic and have some savings over the fare of the ride. For this purpose, there should be a better option which is already available in the market in the form of the financing for purchasing of car or in the short term it is called a car loan. A car loan is a type of loan where the loan amount is transferred either to the bank account of the loan borrower or directly will be transferred to the bank account of the car company. For example, Bank of India car loan is having a good facilities for the customers.

Trends On Loan

Recently, Shaktikanta Das has decided to give some review to implement some reforms into the system to provide relaxation to many customers who are struggling in the repayment of the loans. People who already have a loan duration of about four years benefit from another to moratorium years. The credit system is maintained and stabilized without any loans for bad debts, which will eventually affect the bank and the financial system itself.

1) Few things are really very beneficial in case of the dealings of the car loan. The first and foremost thing is that there is no requirement of any security or collateral security with low car loan interest rate. Collateral security is the type of security that is kept with the bank in case if any default happens in future. There will be a backup from the side of the loan providers to resell it, and we collect the loan amount. In the case of the other types of loans, it is required but not in the case of the car loan because the car itself acts as a security that will be seized by the loan providing company in the event of default or surrender of the loan.

2) There is always a way when there is any will. If any loan is going on and the payment of which is being paid based on monthly instalments regularly, then on one side, it is not only the payment of borrower is paying but also building a good credit score on the other side. If a person is having a poor credit score for a terrible credit score, then this is an excellent opportunity that it a high amount of loan which is a car loan is a perfect option that only with a single loan the credit score can have a huge jump to high scores and which will be very much beneficial to claim any loan in the future. For example, if you are buying a car worth rupees 8 lacs and before that the credit score was within the range of 300 to 400 but after a suitable repayment procedure and being in the top means of the repayment please will make you too to achieve more than the score of 650 or even 800.

As we all know, maintenance and proper decision and balancing the expenses and the savings are essential nowadays to have an excellent financial profile. Having a car loan will automatically bring some of the habits of keeping some extra amount to pay the monthly EMI for the car loan. In this way, the EMI amount and some extra money for the other expenses will also be available by that particular person, which will bring off the regular habit by repeating throughout the tenure period of the loan. To compute we can say that few good things attract the customers towards the car loan.

Also Read:- Why Car acts as a Collateral in Car Loan? 

There are a number of banks and Non-Banking Financial Companies (NBFCs) that give the facility of car loan to their customers. You can easily fund your car using these loans and take your dream car home with you.

But there are numerous other factors that affect the car loan and should be kept in mind while applying for a car loan. And one of the most vital factors is a credit score. If you have a bad credit score, it can reduce your chances of getting a car loan approved by the bank.

How to get a car loan with a low credit score?

A large number of people in India have low credit scores. Still, some banks allow those customers to make their dream come true by availing of a car loan. So lenders have given some fantastic methods by which you can apply for a car loan with a low credit score. The methods are:

Down Payment

If your credit score is low, then you can volunteer to pay a considerable amount as a down payment for your car. A high down payment will lower the loan amount. And the Car Loan Interest Rate associated with it. Banks need some kind of assurance that you will repay the money because your credit score is low. And credit score shows your creditworthiness. So if you make a huge down payment, that will give banks an assurance that you've paid half the amount now. Only a small portion of the principal amount is left.

Repayment capacity

Banks do give the EMI facility to their customers. But the EMI doesn't exceed 60% of your income. So always take a loan amount according to your repayment capacity, and income has to be according to the loan amount you take. Some banks do offer more money but don't fall for that trick. And remember that you'll have to repay that money along with the interest rate and if you're unable to pay that, then your car will be seized. You can plan your budget using some online tools like the EMI calculator. Where you'll have to enter the loan amount, interest rate and tenure, then click submit. It'll show you the interest you'll pay and the EMI that you'll pay every month.

Multiple loans

Don't take multiple loans or debts at the same time. Because if you're unable to pay those debts at the same time, then it will affect your credit score. And banks check credit history before approving the loan application, so if you've taken multiple loans, then banks will look at you like you're hungry for credits/money. And if you're unable to pay those debts, then banks will decide that you are a red flag, and you don't pay your EMI on time.

Co-signer

If you have a low credit score, then you should apply for this option. A co-signer is someone that will take the responsibility of repaying the loan amount along with you. It can be anyone, your friends, family or relatives. You can borrow their credit score and income capacity to be eligible for this loan. But be sure to choose a co-signer that has a high credit score and high-income capacity because a high credit score will help you get a lot by giving low-interest rates or any other profits.

Documents

Read all the paperwork given to you related to car loan carefully. Don't hesitate to ask any doubts to your financial advisor or bank manager. It's necessary for the customers to know everything before they enter into an agreement. Read all the terms, conditions, fees and charges carefully before deciding anything. Banks like ICICI provide ICICI Car Loan to their customers, after they receive all documents.

Conclusion

There are a lot of options that can give you a discount, so be sure to research everything regarding car loan carefully and then make any decision. Some banks allow you to apply even if your credit score is low. But make sure to pay your current car loans EMI on time to help you increase your credit score.

Gold loan eligibility

There are specific eligibility criteria that one has to abide by. Although there is no barrier of occupation or income, some requirements have to be followed. The applicant has to be a legal adult, i.e. above eighteen years old. The gold has to be between 18-22 carats. A CIBIL score of 500 is required but not mandatory. If one has a low credit score, he/she can avail of the Gold loan and improve his/her credit score by repaying the debt on time.

The gold loan can be available for agricultural and Non- agrarian purposes. Proof of agricultural land has to be shown to avail Gold Loan for farming purposes, and the loan amount has to be used for the same. Acquiring a loan for Non-agricultural purposes, no restriction is imposed on the use of the loan amount. This can be availed by salaried, homemakers, business people, students, etc. The loan can be availed for weddings, travel, education or business expansion, etc. nowadays, online gold loan applications,  have gathered a lot of attention.

Gold loan Process

Yes Bank gold loan procedure can be completed in Online and Offline modes.

OFFLINE MODE- One has to visit a bank for this process. Complete the application and proceed for document verification and Purity test of gold.

ONLINE MODE- One can apply through the official website or app of the bank. A Bank representative will call you shortly for scheduling an appointment for a bank visit. One has to carry a set of documents along with two passport size photographs. Document verification and purity tests of gold are conducted during the Bank visit. The rest of the procedure after the application is the same for both modes.

In Document verification, identity proof and address proof, and two passport-sized photographs of the applicant have to be submitted. Address proof- Passport, Ration card, Aadhar card, utility bills, and renter agreement for people living on rent. In the gold purity test, the gold which has to be kept mortgage has to be evaluated. The purity test has to be conducted by bank authorities. In the purity test, gold is considered for its weight, composition, and impurities present in it. Loan approval depends on all these things.

Loan approval

Once you met all the necessary criteria. The gold loan gets approved. An approval letter is issued in the borrower's name, containing all the information about the lending bank, total loan amount approved, gold rate per gram, interest rates, tenure period, repayment options, processing fees, etc. Bank. Once you deposited the gold safely in the Bank, the loan amount is credited to your Bank account.

Safety of gold

The gold you keep as a mortgage must be deposited in the Bank for availing; loan. This gold is marked up by the Bank with your application no and mentioned in the approval letter, which is unique. It is then safely kept in Bank lockers present inside the vault in the Banks. Surveillance has been maintained on these vaults by the Bank. The lockers are locked and have specific keys for each locker.

Repayment options

There are several alternatives given to the borrower for Debt consolidation. One doesn't need to have a a bank account for availing loan.

• Post Dated Cheques: The cheques are issued on a future date and submitted from one bank account to the another nearest branch.
• Electronic Clearance System: the digital transfer is done from a bank.
• Standing Instruction: an instruction is given to the bank to make payments to set a regular interval for bank customers.

      Read More:- What The hallmarking Of Gold Means For you 

About Gold Loan

Gold advance alludes to an advance against gold which proposes that credit is taken to enter the state of cash or such monetary money in return for promising or removal of the gold articles like gems to the banks or loaner. Axis Bank Gold Loan are one of  the banks that offer this advance. The advance taken out against the gold is set or determined by the immaculateness or the portion of the general cost of the gold gave. you'll take care of the credit through portions set by you till the advance is paid off and furthermore the articles are given back to you. As found in various advances, there are unit-explicit utilizations for each credit anyway a gold advance licenses you to utilize the assets in any methodology you might want and this can be an awesome stock of assets in a crisis. This is one of the premier normal advances taken in the Republic of India and is broadly used by people in country regions.

What are the benefits Of A Gold Loan?

Quick Processing Times - This requires the least documentation and gold credit qualification capabilities are permissive which causes quick interaction times allowing the advance to be several hours after endorsement.

Use Flexibility - In credits like home advances or car advances, the assets are assigned to a specific use while, in gold advances, the supports apportioned might be utilized for any longings or necessities.

Decreased Interest Rates - As gold is saved for security, there could be no other requirement for a guarantee that allows a diminished rate.

Pay Verification Not Required - The banks needn't bother with confirmation of monetary profit since it very well might be an advance against gold that serves the necessity for guarantee.

Drawbacks to Gold Loans

Advance to Credit Magnitude Relation - Gold advance offers a positive extent of the general cost of the gold that arrives at a large portion of 80% of the general cost. This can be expressed as the Loan to Value proportion. This infers that you just may have the value of five lakhs in gold anyway are offered four lakhs exclusively.

Odds of Losing Your Gold - If you can't pay the costs on schedule or have an enormous amount of credit to reimburse, your gold might be unloaded as security.

Records and Eligibility Needed for Gold Loans

Gold loan eligibility is probably the simplest cycle and needs the littlest measure of possible reports. 

The reports required are -

1) ID reports- PAN Card/Aadhaar Card/Voter's ID Card/Passport Copy·

2) Address Proof- License/Aadhar Card/Passport

3) Identification Size pictures

Least and most Age necessities - 

Least Age - 21 Years (Some banks could require 23 Years)

Most extreme Age - 65 Years

Business Nature -  

a) Independently employed individuals, just as salaried staff, are qualified.

b) Entrepreneurs needing capital and further assets.

c) Housewives and retirees are likewise qualified.

Nature of Gold

 i) Gold adornments should be in the middle of 18 to 24 carats. 

ii) Gold coins and bars might be utilized to apply for the advance

CIBIL Score

a) Your CIBIL score will not affect your solicitation for the advance.

 b) Be that as it may, your repayment record can add to your CIBIL score. 

Gold advances are one in everything about first valuable and generally safe advances that are essentially available by everyone paying little heed to the occupation and they're very normal and need the base number of records that settles on it an alluring decision for housewives or resigned people, some regular decisions are AXIS gold advance. Albeit gold is an always developing business sector, the bogus view of the expenses can never fall in India is kind of normal, in any case, this can be not the situation. There are examples of fast fall in costs which can bring down the credit to value size connection. On the off chance that applying for a gold credit, check all factors concerned and select the ideal decision.

To crack a gold loan is not a big deal, but to select a reasonable bank may so. The banks provide a gold loan on the different interest rates, and they have different gold loan eligibility criteria. An individual first measures the quality of the gold, market value, and gold’s purity as the bank offers the gold loan amount based on this gold loan eligibility criteria. The gold purity must be in 18 carats to 24 carats, and NBFCs do not prefer the quantity of the gold coins to more than 50gm.

A gold loan is a kind of secured loan that requires security in the form of gold ornaments or coins. The gold loan can apply online or offline; an individual can choose any medium. Vijaya Bank gold loan also provides loan amounts through an online application. Nowadays, Online mediums for gold loan applications have become popular in the last decade. 

Though online medium, there are several benefits as -

• Reduce transportation cost
• Competitive interest rate
• Less documentation
• Less time consuming
• Reasonable tenure

With the help of technology changed, the gold loan will improve their future as technology changes. A gold loan is the most common way in India to avail of the loan amount as the vibe of gold security in the bank as gold loans are offered by them. A gold loan is the most suitable alternative for those who want to avail the amount instantly and are in a hurry to fulfill their requirements. 

Moreover, technology plays an indispensable role in the form of gold loan. 

There are some tech-related innovations includes -

1. Immediate Payment Service relies on prompt payment transformation of the loan amount directly into the client’s account. 
2. Online Payment Systems offer the ability to carry the principal amount and interest with transparency and reasonable method. 
3. E-KYC is an electronic project-based on the bio-metric confirmation with Unique Identification Authority of India serves to host Aadhar data rather than hard copy KYC verification. 
4. E-Wallets are another gold loan method that can convey those clients who don’t have a bank account. 

Next-generation technology for gold loans -

Non-banking financial firms continually attempt to manage and improve the efficiency of operations. Centrally managed application is used for building the potential of transitions that are also accessed by all the branches for every transaction. IOT (Internet of Things) is an evolving technology that provides distinctive solutions to issues and conjointly made it affordable to imagine the total gold loan’s fundamental transformation of a gold loan.

Online Gold loans -

The disbursal method of the gold loan process is given below :

1. The client who deposits the gold to the loaner is automatically eligible for a gold loan, up to the suitable LTV (loan to value) limits.
2. A person will apply for a gold loan online while not visiting any branch of a bank. If an individual is eligible for the disbursal, then he/she will get the amount to their bank account or E-Wallet online.
3. The rule-based software system will facilitate the visualization of an individual’s gold loan eligibility criteria before disbursing the loan.

Vijaya Bank Gold Loan Key Features -

Following are the highlights of the Vijaya Bank gold loan rate are given below :

Lastly, you can go for a gold loan without any hesitation because it is a reasonable deal for those who need immediate cash. 

Also Read:- Loan Disbursal Process Of Gold Loan 

The gold loan application process :

Gold loan application involves the submission of detailed information by the borrower. The application form can be filled online as well as by visiting the bank. Gold loans are one of the most uncomplicated and most straightforward methods to leverage your gold and obtain funds. Anyone who has gold, whether in jewellery, coins, or bars, is eligible for this loan. One has to abide by the eligibility parameters to acquire a Gold Loan. 

Why is document verification necessary?

An individual is asked to submit KYC documents for verification purposes where the credentials are verified. Identity and residency proof, as well as two passport-sized pictures, are mandatory. This process is necessary to avoid cases of fraud. If the fraudulent activity is detected during verification, then the loan application gets rejected, and strict legal action might be taken against that particular individual. The photocopies of the following documents have to submit for document verification. 

1. Aadhar card, ration card, utility bills, passport, PAN Card, Renter’s agreement can be submitted as Residence proof.
2. Aadhar Card, Driving License, Voter ID, Passport can be submitted as identity proof. 

What does the purity test of gold signify? 

The purity test of Gold analyses the composition of gold along with impurities. The impurities make the weight of Gold more, so it is essential to evaluate it. This test is significant in assessing mortgage jewellery, and the loan amount is determined based on gold’s worth after the purity test.

How is the interest rate evaluated in Gold Loan?

To get the best interest rates, you must negotiate. Gold loans often have lower interest rates than personal loans since they are ensured, whereas personal loans are insecure. Because they have a higher cost of financing, NBFCs usually charge a higher interest rate than banks. In most occurrences, the Gold Loan Interest Rate is between 13 and 15%.

What happens to the mortgaged gold?

The mortgage gold is safely kept in bank lockers marked with a unique application number mentioned in the borrower’s approval letter. This gold is sealed in the bag and kept in safes by bank authorities. The gold is safe-keeping until the end of the loan term.

 When is the gold liquidated or auctioned?

When the borrower fails to repay the amount in a given time frame, then at such times, an ultimatum is given to the borrower of two weeks to make the repayment. If the borrower fails to repay in the given extended timeframe, liquidation or auction is done. Banks compensate the outstanding amount in whichever way it is suitable for them.

 Can the gold loan be acquired on ancient jewellery?

It is commonly believed that loans can’t be acquired on ancient jewellery or heirlooms. This is entirely false as a gold loan can be obtained on any jewellery weighing above 18 carats.

 Is the lender's credibility important? 

It does so because you keep your gold there. The lender will feel confident since he has the gold as collateral if the borrower does not pay its interest rate back. However, the value of your gold exceeds the loan value, and there is no assurance that you will receive the gold back. Before approaching a lender, conduct background checks and become familiar with the security procedures in place. Therefore Manappuram Gold Loan is a good option for obtaining a Gold loan with less incurred interest rates.

 What happens after successful debt consolidation?

When you complete the loan repayments, the bank issues a loan completion letter in your name and tour gold valuables are safely returned to you thereupon.

 What are the tenure period and repayment options of Gold Loan?

Because a gold loan is a short-term loan, its tenure duration is shorter than other loans. The tenure period is usually 6-12 months. The borrower doesn’t need to be the bank’s existing customers to avail of this loan. The repayment can be done from another bank to Manappuram bank for loan repayment. The repayment options such as Standing Instruction, Debit mandate, post dated cheques. 

In the online mode of the loan availing of the gold loan, one needs to go to a particular official website of the gold loan provider. Check the required documents. After the loan application is approved, the loan amount will be into the loan procedure applicant.  

The steps can be expressed in the following ways- 

Fast process: Gold is a speedy process as if it is done online, it is swift. The first one will not have to go to any particular location to avail of any loan application form.  Then the person will not have to go beyond the limits and see the juniors to go outside at very distant places or crowded areas like in a bank. The standard measure for gold loan is the gold loan eligibility followed to avail a gold loan. 

List the documents: As method of the loan providing agency will be going through the online procedure, there will be no mentioning of any offline things.  There is the availability of gold loan calculators on the official website of the banks and NBFC. This gold loan calculator reduces this pressure on the staff of The financial institutions as it is automated and can be used by any prospective customer by just putting the details required to fill up. For example, if staff is handling to customers in the office then and one of them is asking all the related things which can be provided through the help of the gold loan calculator then it is a waste of time from both the sides and the efficiency is getting hampered for the services. A person must have the proper knowledge of the weight of the gold because the amount of the loan which will be provided or will be eligible for getting the loan will lead to filling up with the information in the gold loan calculator. This is a huge advantage that putting the data and getting the status in within seconds is a unique feature that has been introduced and is going on currently. The business schedule is too hectic, so for getting the loan status, this is the best option one can follow up to the gold loan calculator. Different types of gold loan payments are also available where the customers find it flexible to repay the loan from that of a regular customer to that of a high-class businessman. The documentation process also includes a very minimum and basic needs of the details. the proof of address, the proof of Identity, some passport size photographs, and documents showing ownership of the gold. Many different kinds of people with other intentions to theft or rock that particular person and take the whole amount of money from him. 

Accuracy: In the gold loan, if I went through the online mode, then there is perfect accuracy that one might get connected to a particular wiggle official officer of a respective Bank. As a specific person is going through the bank's official website so there will be the most negligible chances of getting diverted by any person or people standing in front of the bank and faking by pretending a bank employee there will be saved of any financial losses. Yes Bank gold loan is also well known for its best schemes. 

A better comparison: In this  what happens is, the person will not have to call India numbers for numbers for going travelling to different travelling to different locations for. One can avail or have that over at a particular place.

With the different kinds of online modes, wearing a gold loan is having disadvantages. There are disadvantages such as the online mode, the use of electricity or the internet. It will be a tough procedure and will also have a negative effect. The time of emergency of availing the gold loan is very much questionable.

Must Read:- GOLD LOAN GUIDE