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Gold loans are one of the most popular ways to secure quick finance that has recently gained market attention. But, apart from all these benefits, there are specific golden rules that one should know before applying for a gold loan. So, let us discuss some of these golden rules:

Interest rate: There are various interest rates of gold loans that depend on the lenders and many other factors such as loan amount, loan tenure, LTV ratio, and other factors. For example, if there is a high LTV ratio, the lender will charge a higher interest rate to avoid their risk. Therefore, one should compare the gold loan interest rate from various banks and institutions to get the most suitable.

Processing Charges: Most gold loans have zero processing charges or minimal processing charges that are as low as 1%-2%, whereas some might even charge a fixed percentage and others may charge some percentage of the whole amount of the gold loan it all depends on the bank or lender from whom you are availing the loan about how much fees they will charge, Loan tenure and repayment tenure: The gold loan is a short term secured loan with a flexible tenure that ranges between 3 days to 3 years. This may vary according to different lenders and banks. Banks and lenders offer a variety of repayment options along with the usual monthly instalments mode. Borrowers can choose to repay the principal amount at the end and all the monthly instalments, or they can pay monthly instalments every month and the principal amount at the end of the tenure. A person can even calculate his monthly instalments before applying for a loan by using the EMI calculator to know if he will be able to repay the instalments or not. For example, the EMI system will suit a salaried person with regular monthly income, and the non-EMI system will suit self-employed workers who do not have a fixed source of income per month.

Loan amount: As a gold loan is a secured loan, a gold loan will depend on the gold you pledge as collateral. RBI has chosen the loan-to-value ratio as 75% of the total value of gold that is pledged. Recently this percentage has increased up to 90%. The amount of loan that you will get will also depend on the lender you choose to get it from.

These are some of the golden rules that one should keep in mind before taking a gold loan, as one should make sure that every condition is well-suited for him before taking a gold loan.

Now, it is vital to know all the golden rules and then apply for a gold loan as then it becomes easier to get the gold loan by deciding where you want to take the loan. PNB gold loan is an excellent option to get a loan as they offer terms and conditions that are pretty comfortable, and you can bargain after knowing the golden rules that give you an upper hand. So, these are the benefits of knowing the golden rules; the risk of fraud is eliminated as you can go for the loan as per your terms and conditions.

Must Read:- Gold Loan Is Important For You 

The credit a person gets by pledging their gold to any lending institution with a promise to repay the loan amount is a gold loan. A person having basic KYC document verification can easily get Gold loan to raise funds at times of emergency. There are some facts about gold loans that people pay less attention to but should be determined before applying for the same. Gold loans are known for their low rate of interest but not all gold loans have a low rate of interest as the gold loan interest charged on loan depends on some factors. They are generally the borrower's profile, CIBIL credit score, which is a three digit number that tells whether a person is creditworthy or not and the type of creditor chosen by the borrower. 

Another unknown fact about the gold loan is that reputed finance houses guarantee the safety of gold articles pledged with them as the gold articles or jewelries are kept in a vault in a strong room that have robust security arrangements in place. So there are no chances that the gold kept as collateral can be replaced or or get stolen. An interesting fact to add up about gold loans is, ancient or traditional gold articles or jewelries can also be kept as collateral following the issued guidelines by the government regarding the quality of those gold articles to avail a gold loan. According to the guidelines the gold articles or jewelries must be of at least 18 carat of pure gold. 

Investors normally choose to buy gold as this expensive metal diversifies the threat, and therefore is one of the most prominent undertakings one has. People who want to progress with the help of some profitable interest through investments should infuse in Gold ETF rather than physical gold as the gold ETF is definitely a better choice. Gold mutual funds have high liquidity and availability and thereby people who want to finance in short term gold should buy gold mutual funds. Investors after finishing fundamental calculations in macroeconomic predicaments evaluate the yearly global gold supply versus its market demand and after that they choose investing in gold.    

There are multiple ways attainable by the investors for investing in gold and select the best choice being sure of their budget. Gold investment can be done through- Gold ETF using a Demat account from formal Institutions like INVESCO India Gold ETF, SBI Gold ETF, and Kotak gold ETF; investing in Gold savings fund which is recognized for its organized investment strategy; investing in Gold mining stocks; investing in physical gold, gold ornaments, gold bars and coins; and investing in equity-based Gold funds. If a person does not have adequate reserves to invest in gold then a Gold Loan is a helpful option, where gold ornaments can be pledged to get ample amounts of capital to be utilized for any purpose. 

People who want to get a gold loan must know the gold rate of that day and benefits of the loan before applying for the same, and they are :-

1.  It is not at all time consuming. 
2. The application process and the disbursement of loan is quick and easy. 
3. The loan amount can be approved within a few hours like in SBI Gold Loan, Bank Of India Gold Loan, Axis Bank Gold Loan, etc.
4. The gold value evaluation is done by making the best use of it. 
5. The gold is given back immediately after the repayment procedure is completed. Gold Rate Today is Rs. 48,455 in Kolkata for 10 grams of 24 carat pure gold. In Punjab, it is Rs 46,150 for 10 grams of 22 carat gold. So, the best gold loans can be availed by any person in need of funds by just pledging the gold ornaments and doing minimum documentation process at times of need.

Must read:- Some Rules To Follow While Availing A Gold Loan 

Even when you have medical insurance coverage, you ought to deliver a large amount of cash while checking in to a health centre for remedy. The insurer's popularity of cashless remedy might also additionally take time. Meanwhile, the health centre should ask you to pay a few quantities prematurely to start remedy. You may also want cash if your coverage has a small sum insured or if for a few cause you're pressured to visit a non-community health centre.

 If You Want To Elevate Cash In A Hurry. Here Are Some Sources You May Wanna Look :- 

1. Personal Loans:- A perosnal loan can be sough after by any bank. They are usualy unsecured loans and provide low intrest rates. Even a gold loan canbe taken in which gold acts as a collateral. Banks like SBI gold loan offers intrest rates as low as 7% per annum.
   
   
2. Credit Unions: These not-for-profit establishments provide a number of the maximum consumer-pleasant loans. A credit score union loan regularly comes with a decrease APR and greater bendy phrases than one from a financial institution or online lender. Fair- and bad-credit score borrowers (629 or decrease FICO) might also have a higher danger of having approval from a credit score union because the underwriting approaches generally tend to contain greater than credit score information. Some credit score unions also provide payday opportunity loans, which can be more secure than high-interest, short-term payday loans. These loans have the most APR of 28%.
   
   
3. Salary Finance: Salary Finance presents loans via employers and companions with Equifax to provide agencies perception into employees' economic health. The partnership became withinside the works earlier than the COVID-19 disaster began, says Salary Finance CEO Dan Macklin, and its providing isn't always contingent on the pandemic's impact on the economy.
   
   
4. Credit Card:-  They are also on the list. However, most borrowers would have paid EMIs for the month of March as these are automatically debited from their bank account. Applies to all term loans and working capital loans with all types of lenders: commercial banks, including regional rural banks, small finance and local banks, credit unions, microfinance institutions and non-bank finance companies (NBFC).
   
   
5. Online Creditors: Online creditors may be a quick alternative for emergency loans. You'll probably want an appropriate credit score and consistent earnings to qualify in today's climate. If you're now no longer optimistic whether or not you will qualify or what price you'd get, you may pre-qualify for a web mortgage with NerdWallet. Pre-qualifying does now no longer affect your credit score score.
   
   
6. Relief On Repayment:-The RBI has announced several measures to facilitate liquidity and relieve lenders and their borrowers. For example, it announced a three-month moratorium on instalment payments on all fixed-term loans such as home loans, auto loans, education loans, and permanent consumer loans. And personal loans due between March 1 and May 31, 2020.
   
   

It's not an exception, just a change in payment schedules; however, the outstanding portion of the fixed-term loans continues to bear Gold Loan interest rate during the moratorium period. Therefore, NBFCs, including HFCs, are required to make changes and align payment schedules, accounting changes, and provisioning schedules and seek approval from the board before implementing the three-month moratorium. The central bank has stressed that lenders will develop board-approved guidelines to provide relief to all eligible borrowers. However, analysts say borrowers may need to contact their lenders to get out of the moratorium and prove their income has suffered.

 If a borrower fails to apply for the moratorium, the bank can continue EMI self-debit. You have to pay additional interest for the three-month moratorium, which is calculated based on simple interest. This is because interest accrues during the moratorium period, and borrowers must pay the accrued interest along with their monthly payments starting in June. The central bank has made it clear that the rescheduling of payments, including interest, does not qualify as late payment to provide credit institutions with information to credit bureaus. The delay does not adversely affect the creditworthiness of individual borrowers. In addition, the three-month moratorium does not apply to demand credits, such as gold loans.

Must read:- Important Tips To Save Yourself From Fraud Lender 

Yes, it is safe to go with a gold loan but there are a few things to bear in mind if you're in desperate need of cash and considering taking out a gold loan.

The credibility of the Lender-

A gold loan can be described in two ways: given and taken. You make money by giving gold. You must apply your gold as collateral or insurance to the lender if asked by a bank or NBFC. When the loan is repaid in full, the lender will automatically release your gold. If there is a scam and the lender refuses to refund your gold despite the fact that you have paid the loan in full payment.

To safeguard yourself against such situations and fraud, the alternative you choose must be well-known and have a good market position. If you take a loan from an unregulated source, there's a risk you'll be misled and lose your gold.

a) Loan Amount-

When applying for a gold loan, the loan amount is most important. There are numerous banks that sell gold, as well as numerous non-bank financial institutions (NBFIs) that specialize in gold loans. You should be mindful that no lender can lend you 100% of the value of your gold. The average loan amount is based on the total value of your gold and ranges from 65 percent to 85 percent. For example, bank, under Axis Bank Gold Loan per gram you can simply get the 90% of the value of your gold submitted i.e 90k on one 1 lakh. So, if your gold is worth 1 lakh, the maximum sum lent by financial institutions would be 85k based on the total value of your gold. As a consequence, it's easier to choose from a range of choices that will give you the most money for your gold. 

b) Rate of Interest-

You decide to get the best price on the goods you are buying because you are an intelligent buyer. For gold loans, the principle is the same. The amount of gold you have to put up as collateral determines your gold loan eligibility. As a result, always choose an option that will lend you more money at a lower interest rate. So look for a lender that is a good fit for you so you don't have to pay a higher loan rate. Gold rate is an essential factor. So wherever you live, you should be aware of the Gold Rate Today.  For e.g if you live in Chennai you must be aware of the Gold Rate in Chennai. 

c) Repayment method-

A person's decision to take out a gold loan is influenced by a number of factors. In contrast to other types of loans, a gold loan provides more flexibility in terms of repayment and payment methods. As a borrower, it is your responsibility to examine the repayment options provided by a specific source for your gold loans. There are several options for repayment, including monthly, quarterly, semi-annually, or yearly payments, with the remainder of the principal due at the end of the term. As a result, paying a portion of the principal and interest each month is the easiest way to repay. Some lenders also offer a bullet repayment option, in which you pay both the interest and the principal at the end of the term.

d) Tenure-

Before taking out a gold loan from any lender, make sure you know how much you can afford to repay. Taking out a gold loan usually has a short term, ranging from 12 to 48 months. If you try to miss payments, it will have a negative effect on your credit score and you could be assessed a penalty.

CONCLUSION- 

Holding these points in mind will assist you in making an appropriate decision based on your capabilities. Examine the clauses of various financial firms and learn more about how they can shield you from a number of scams and misunderstandings.            

Must Read:- Availing a Gold Loan for Traveling Purpose 

Gold has been in existence since the dawn of time. And the usage of it has only grown more so in India than in any other country. It has become part of our day to day life increasing its value and requirement over time. The immense usage of gold then led to the invention of loan against gold and its high demand. A gold loan is a secured loan provided against the customer’s legal gold ornament or article. The loan is granted for a certain period on the agreement that the borrower pays the principal with interest on or before the end of the loan term. Gold loans are common in all classes of society primarily because of their abundance of advantages. As the production of gold articles and other forms increased, the purchase of gold became higher and higher, making it all the more for the people to use it as collateral instead of immobile properties or high-interest unsecured loans. The banks and financial institutes ensure that the gold asset received is protected and in good care. Therefore the gold is even safer in the bank’s or NBFCs vault than in-home lockers. Plus, the money sanction on the gold loan is much higher than many other loans. The interest rate is low, and the tenure is short, making it all the more attractive. Gold loan Calculators on the bank’s official website or NBFC can be used to know more about interest rates, tenure, and principal amount depending on the weight and purity of the gold asset.

The increase in demand for gold loans is significant because of its requirement of minimum documents and no income proof. To avail of a gold loan, the documents required are ID proof(PAN card, Voter id, Aadhar card, driving license, passport, or any other valid proof of id), two photocopies of the applicant and proof of agricultural land if the applicant is a farmer. Farmers are applicable for lower interest rates than usual in gold loans. Income proof is not required for a gold loan. Therefore you can take out this loan even if you are unemployed or a homemaker or facing difficulties in having a permanent job. A gold loan also doesn’t need a credit score. A credit report by the company CIBIL contains personal, banking, professional information in addition to past credits(loan or debts) of individuals, societies, companies, corporations and/or other banking customers. The report is summarized by credit score or CIBIL, which varies mainly from 300 to 900 and is extremely important for taking out most loans as it depicts the borrower’s repayment capability. But for a gold loan, it is unnecessary as it is secured. Due to the above reasons, the processing of the gold loan is easy and doesn’t take much time to get money from the lender. This makes a gold loan convenient and the first choice among other loans. Unlike other loans with only one repayment option as Equated Monthly Instalments(EMI), the gold loan also has bullet scheme payment and partial payment methods to repay interest amount and principal. The bullet scheme payment is where you as a borrower pay the total interest amount and loan amount at once at the end of tenure. In the Partial payment method, you pay a partial amount of the principal amount and interest whenever you wish before the term ends. This scheme is available only in banks and NBFCs.in the regular interest payments; you pay the interest amount each month till the end of tenure and the principal amount at the time of maturity. This is the most famously used method of payment or reimbursement. The payments can be done either via net banking or through cheque or cash. Automated detection is also available, where the lender automatically deducts the interest and principal when the time comes from the borrower’s savings account. But there must be enough funds to do so, and the borrower has to opt for this type of payment personally. Oriental bank of commerce gold loan provides online and offline services with the best offers in the market.  

Read More:- A gold credit utilized for Dire Needs 

In the case of a gold loan, the unique thing is the low rate of interest. On the other side, all the other types of loans have a high rate of interest which acts as a matter of burden in most cases. There is a reason behind the low rate of interest also. There is the availability of the gold loan calculator, which gives better estimation when taking the decision to avail a loan. In most of the cases of the other types of loans, the rate of interest is low due to the dependents of many factors like that of competition among them Financial institutions and gold rate movements within the domestic territory of the country as well as the movement of the price of the gold in the international market.

Age Limits

First and foremost, according to the eligibility criteria for availing a gold loan, most of the banks, nbfc and The Financial institutions have separate legal formalities as per their suitability and the choices according to their business styles and patterns. On an average basis, there has been an age limit that generally ranges between the age of 18 years to 70 years. The age criteria have been made like that because at the younger age of less than 18 a person in the teenage years will be in the studies of the colleges or might be searching for any kind of job.

 Therefore, there is no stability or the independence of the financial situation at the very tender age, due to which the age has been kept with the upper limit of 18 years. If we talk about the upper limit of the age criteria, some patterns and factors have been considered. Near about 70 years of age has been kept as the upper limit. After the age of such an experience, there is no more availability of financial dependency as the age for most of the jobs gets over, and the life of the retirement starts over here. The life of financial independence also reduces or gets depleted along with the fasting days and Times.

Loan to value ratio

There has been the loan to value ratio implementation, which means how much of the money in the form of loan you will be getting as per the total value of the gold availing party. PNB gold loan offers a lower LTV ratio for the customers to benefit them. Previously the loan to value ratio went to less, but as time passed by and the different forms of loans have been implemented for the betterment of the customer. The loan to value ratio is lower than the loan amount that a customer wants to avail might not be possible if the percentage is unfavourable.

 Nowadays, the loan to value ratio has increased 75% to 90%, and even that of a hundred per cent is also available. There has been a range of between 75 - 100 % of the loan to value ratio in most banks as there is cutthroat competition among the institutions. Not a single company wants to give up their customer due to competition in the market.

Purity pattern of the gold

There has been a pattern of maintaining a purity limit so that the gold becomes acceptable for providing a loan. The purity limit starts from 18 carats and should be below the maximum limit of 24 carats. Anything above or below this limit is not treated as extractable gold for providing a loan. So one thing should be kept in mind after getting gold from other people as a helping hand during that particular time should be examined and evaluated from the goods made that should have a purity limit of between 18 to 24 carats.

Less Time Consuming

Gold loan is also preferred because of its less time-consuming documentation process. It is decided by only proof of address, proof of Identity, passport size photograph and a gold ownership document.

Also Read:- Why makes Gold an important asset in Gold Loan? 

Gold loan has always been an important part in uplifting people in difficult times. People all over the India urban as well as rural area have faith on gold loan as it one of most safe and secured loan. Gold Rate Today for 10gm of 24 carat gold is 48,680.00 Indian Rupee. This is the best time to invest in gold as there is an increase in the market price of the gold. One can apply for a gold loan online at the website of the bank or non-banking financing companies(NBFCs). 

Dena Bank Gold Loan can be applied easily online at the website of the bank or offline at the nearest bank branch. The bank offers amazing schemes on gold loans. The application for a gold loan is easy and it requires minimal documents. The required documents are Aadhar Card, Valid Driving License, Valid Passport, Voter’s ID Card, Salary slip, income tax return documents, employment proof, bank statements, income proof and other documents as demanded by the bank. The bank is recommended for getting a gold loan. 

Applying for a gold loan has various advantages. One can even apply for a gold with a bad credit score. While availing a gold loan credit score is considered by various banks and non-banking financing companies(NBFCs). Gold loan is a secured loan and it only requires gold ornaments and coins as a security against the loan. In gold loan credit score and report is not considered important. It is preferred by so many people in times of emergencies as it doesn't require a good credit score and can be availed easily without any hassle. In gold loan CIBIL scores are less desirable. A gold loan can help in increasing the credit score of a borrower if the repayment of the loan is done timely. One can easily get a gold loan at a minimum cibil score without any difficulties. 

The various benefits of the gold loan is listed below:- 

• Quick processing:- In modern times getting a gold loan is easy as the processing time is faster compared to earlier times. The processing of the hold loan required 24hrs to 72hrs. One can also apply for a gold loan from the online website of the financing company for the faster processing of the loan.
  
  
• Loan disbursal:- After the loan documentation verification the loan amount is sanctioned in the saving account of the borrower. The amount is sanctioned in 72hrs after the verification of the documents and evaluation of the gold.
  
  
• Ideal for emergencies:- Gold loan can be used for meeting various daily requirements and hence it is considered to be ideal for emergencies. Various people all over the country apply for a gold loan in the times of emergencies.
  
  
• Loan upto 50 lakh:- one can easily get a loan amount upto 50 lakh. This is very much advantageous for the applicant. One can easily get a higher amount of the loan sanctioned in the savings account. It can be very much beneficial in the case of emergencies. The loan amount depends upon the market price of the gold. The higher the market price the higher will be the loan amount availed.  
  
  

Conclusion :

Gold loan can be availed even if the applicant has a bad credit score. Being a secured loan it only requires gold ornaments, bars or coins as a collateral against the loan. Most of the financing companies do not consider the credit score or report of the applicant. As the only thing desired by the financing company is high purity and amount of the gold given. One should visit online website or app of the preferred bank for applying for a gold loan. 

Must read:- Right Lender for the gold loan. 

Investing in gold has been prevalent since ages and deemed to be the best option over other investments. It provides assistance to the family at the time of financial crisis, because gold loans can easily be availed by pledging the gold. India is one of the largest importers of gold in the entire world, and is also known for their love towards gold. In Indian festivals it is a ritual to purchase gold as it brings prosperity in the family, like in Dhanteras, Makar Sankranti, Gudi Padwa, Akshay Tritiya. This age-old tradition of buying gold is still considered pious by most households.  If someone faces an urgent financial disaster, this asset can generate him cash with minimum obstacles and formalities. 

When a person chooses to get a gold loan the market value of the gold pledged is calculated according to the power per gram market rate of gold on the day of loan application. The stones and gems in the jewellery are excluded from the calculation. Generally the maximum loan that a person can avail is 75% of the market value of the gold in the ornaments depending on its quality. Generally the maximum and amount eligible for an applicant of gold loan ranges from Rs 1000 to Rs 2 crores, where loan per gram is around Rs 2748 to Rs 3359. The people who are eligible to get a gold loan can be within the age of 18 to 75 years.

 Gold Loan per gram based on total weight of ornament, level of the gold purity, past one month average price of 22 carat gold and LTV ratio applied by banks, is calculated by the Gold Loan Calculator. The EMI is composed of both the principal amount of gold loan and the interest component attached to it. EMI Gold Loan Calculator helps to calculate the monthly EMI at the rate of interest and repayment time thereby minimising all the worries of paying debts. EMI depends upon the loan amount which will get higher if the loan amount rises; the higher rate of interest will increase the amount of EMI, and if the loan tenure is high the EMI gets lower.  Though the minimum age for applying for a bank gold loan is 18 years, many banks require the minimum age to be 21 or 23. 

The employment type of the applicant is also another factor to get the gold loan. Salaried employees, self employed, businessman, housewife, senior citizens all are allowed to fetch a gold loan. To meet the working capital requirement, businessmen also get a gold loan as the rates of interest are comparatively low. Homemakers and senior citizens with no income proof and credit score can easily get the benefits of a gold loan by most Banks like Axis Bank gold loan, ICICI Bank Gold Loan, SBI Gold Loan, HDFC Gold Loan.

The ornaments that are to be pledged with the bank must be within 18 to 24 carats of pure gold. So, the price of a 22 carat gold ornament can be estimated by multiplying the price of a 22 carat gold ornament by a factor of 20/22. The CIBIL score for granting a gold loan is hardly checked but the repayment track record of the debtor may be instrumental in the CIBIL score. Even job stability or business stability is also not a factor for sanctioning a gold loan. KYC documents such as address and identity proof and the gold to be pledged is enough for availing a gold loan.

 Some most significant things from a customer's standpoint are clarity, security and choice of loan product to suit their requirements. There should be no hidden cost that may lead to extra burden on the debtor. The internal system and strategies of the company which assures no malafide activities against the gold pledged, should be transparent to the debtor. The choice of loan scheme must cover the range from high LTV to low LTV with appropriate variations in interest rates.

Read More:- When should you opt for a gold loan? 

Now, if we talk about gold loans, there are certain prerequisites that need to be fulfilled before getting the loans sanctioned. It is the same for every bank and institution to ask for these documents which means that before showing a certain few documents and getting them approved you cannot move further as they come under the eligibility criteria which needs to be fulfilled to get the loan. Now, these eligibility criteria vary as we obtain different loans. Some require some documents whereas others might ask for certain other documents for getting the loan.

 Let us mention some of the eligibility criteria that are important to be followed:

There is a certain age criteria which needs to be followed by the applicant that is, any citizen above the age of 18 years and a maximum of 70 years will only be considered eligible to apply for the loan against gold, and in case the age of the borrower is above 70 years then, there must be a co-borrower. Then the profession of the applicant is also taken into consideration, such as most banks and institutions offer jewelry mortgages to businessmen, salaried employees, self-employed people etc. Then there are some eligibility criteria as to the purity of the gold that you will be pledging against the loan amount. Banks and lenders generally prefer accepting gold of 24 carats or 22 carats, and a few of them might accept 18 carats of gold, but that decreases the amount of loan that you will be receiving. The gold is generally offered as per the gold rate today. These are some of the criterial that need to be followed to get the gold loan approved.

Now, there are some criteria in respect to the documents that need to be submitted to get the gold loan sanctioned. These documents are identification proof such as Aadhaar card, pan card, voter ID card, passport etc., then address proof such as the driving license, rent agreement, passport or utility bills that involve electricity bills, water bills, telephone bills, gas bills etc., income proof can also be asked for in the form of salary slips, bank statements, form 16 etc. and some additional documents such as passport size photographs of the applicant etc. and everyone should always carry as the original documents along with the photocopied documents as the bank or lender can ask for any of the two for evaluation. In some cases, a few documents are asked to be kept by the institutions so that they have proof of the borrower.

These are all the eligibility criteria that need to be followed to get the gold loan sanctioned. Every bank or institution needs to fulfil these criteria in order to get a gold loan. Apart from these criteria, a person should see that he is able to fulfil the other requirements, and his pocket allows him to get the loan. There are certain requirements such as the tenure and the rate of interest which need to be seen before taking the loan as they play a major role in the loan process, and these need to be checked before taking the loan.

One of the loan options which makes your process easier by getting your loan on simple conditions is the Future capital gold loan. These loans are easily available at reasonable terms and conditions. They offer you quite a flexible tenure along with a rate of interest of your choice that suits you and your pocket. They ask for documents that can be easily arranged, most of which are mentioned above. And now, they also provide the facility to apply for online gold loans, which makes it an easy task to get the loans sanctioned with a few clicks of buttons.

Must Read:- Gold loan for business purpose 

They have several misunderstandings about gold loans and how they work. If you're in confusion of whether or not to take out a gold loan, keep reading to learn about some common misunderstandings. Individuals or applicants can use the Gold Loan EMI Calculator to estimate how much interest they'll pay on a gold loan secured by their gold or gold jewellery.

HERE ARE SOME  MYTHS ABOUT TAKING GOLD LOAN 

It Takes A Long Time To Get A Gold Loan:- When it comes to gold loan myths, this is the most common in all of them. It is a very lengthy process but the truth is   gold loan is the only type of loan that can be obtained on the spot. Gold loans are approved and disbursed within a day, if not an hour, by banks and non-bank financial institutions (NBFCs). A gold loan is the way to go if you're in urgent need of cash. Gold loan Per Gram gives you an estimate of how much money you may borrow against your gold jewellery.

If You Have Old Traditional Jewellery, You May Not Be Approved For A Gold Loan:- Many people believe that banks and non-bank financial institutions (NBFCs) only lend money to persons who have  new or recently purchased gold jewellery. As a result, despite having a large number of antique gold jewellery, people would not seek a gold loan. However, let us dispel this myth: banks will lend money on antique gold jewellery. The gold must be pure and at least 18 karat to qualify for a loan.

The Gold Loan Is Exclusive Get By Jewellers:- Many large banks and non-bank financial companies (NBFCs) now provide easy gold loans with low interest rates. Many banks and non-bank financial institutions (NBFCs) began to offer gold loans as more people began to invest in gold. There are only a few non-bank financial institutions. Gold loans are a specialty of non-bank financial institutions (NBFIs). It is always safe and secure to take out a gold loan from a reputed bank or non-bank financial institution. Those who assume that gold loans can only be obtained from jewellers and are concerned about their reliability may seek a gold loan through a bank or non-bank financial institution ( NBFC). The IIFL Gold Loan provides secure on-the-spot processing, as well as various repayment choices  with attractive rates of interest.

Your Gold May Be Discreetly Switched:- You must maintain your gold at a bank or a non-bank financial institution (NBFC) to secure a loan against it. If you repay your debt within a certain time frame, the bank or NBFC will return your gold jewellery. Many people assume that money lenders replace your ornaments with fake ornaments. As a result, many people decide against taking out a gold loan because they are worried about their valuable jewellery being stolen.This is not the case, however. To secure your gold loan kept as collateral, banks and non-bank financial institutions (NBFCs) have special security and locker procedures in place. It will only be removed once you have paid off your loan in full. As a result, you can confidently hand over your gold to a bank or non-bank financial institution (NBFC) for a loan.

Gold Loans Have Extremely High Interest Rates:- Banks and NBFCs charge varied interest rates depending on the type of loan. If the loan is unsecured, the interest rate is high, but if the loan is secured, the interest rate is low. A secured loan, such as a gold loan, is a type of secured loan. As a result, banks and non-bank financial companies (NBFCs) do not impose excessive rates of interest The interest rate on gold loans can range from 10.26% to 26 %.

Also Read:- Why Should We Choose A Gold Loan?  

In India, the spread of Covid-19 has resulted in a severe financial shortage. While it is always good to conserve money so that you may utilise it when you are short on cash, one of the methods to get cash during Covid-19 is to take out a gold loan. Most lenders or lending organisations, such as Banks, Financial Institutions, NBFCs, local lenders, and others, offer gold loans in which a sum of money is lent to the borrower in exchange for gold ornaments held as collateral deposit with them. People in financial distress frequently use gold loans to cover their needs while maintaining gold as collateral with the lending organisation.

Gold Loans are one of the most straightforward solutions to overcome financial challenges by simply having your gold jewellery evaluated and borrowing up to 75% of the gold value, depending on the current market rate and weight of the gold. The increasing risk  among lending institutions, as well as the high level of uncertainty brought on by the covid-19 outbreak, has boosted people's willingness to take out gold loans. Due to the implementation of strict lockdown in most states, those who own small enterprises or work on a regular basis are at risk of losing their jobs.

Because unsecured loans such as personal loans and group loans are not available due to the global uncertainties, gold loans are in high demand. Due to the outbreak of the covid-19 pandemic in the financial year 2020, credit growth in this industry fell, while gold loans resisted the trend. The cost of repaying a gold loan is also minimal because the debtor has the option of repaying the principal at the end of the loan repayment period and simply paying interest during the repayment period. During the shutdown in April and May, banks and financial institution's operating hours were restricted, resulting in a lower disbursal take-off. The  future Gold Loan demand will be determined by a number of factors.

Gold loans will remain a popular form of funding because they are easier to obtain than other types of financing. Learning institutions were only allowed to issue 90% loan to value or LTV ratios after the Reserve Bank of India granted a special dispensation, but this concession expired on March 31st. According to official Reserve Bank of India data, most people get gold loans by pledging their household gold reserves to borrow money for essential expenses and medical emergencies after the lockdown caused job losses, wage cuts, and business closures. Gold Rate Today for 10 gram of 24 carat gold is Rs. 48,760. The bank may not take more than 72 hours to disburse the loan amount to your bank account after you have pledged your gold ornament and submitted the required documentation together with the application form. This means you can collect your loan money as soon as possible and meet your financial obligations.

On Term Loans, Overdrafts, and EMI-based loans, HDFC Gold Loan offers reasonable interest rates. Repay your loan over a tenor of your choice with cheap EMIs. Before applying for a gold loan, make sure you evaluate the numerous gold loan plans available to find the one that best suits your needs. After you've compared and decided on the plan you want, you can apply for it either online through the bank's website or in person at the nearest lender's branch.

Must Read:- Eligibility Criteria For Gold Loan 

Gold loan has been a  Saviour. It has helped so many people in financially difficult times. Gold Loan per gram ranges between ₹ 2,741 to ₹ 3,350. One can easily get a gold loan at a very reasonable interest rate. For applying for a gold loan visit the online website of the preferred bank or you can also visit the nearest bank branch.  

PNB gold loan requires easy application with minimal documentation. The documents required are Aadhar Card, Valid Driving License, Valid Passport, Voter’s ID Card, Salary slip, income tax return documents, employment proof, bank statements, income proof and other documents as demanded by the bank. The bank also offers amazing schemes on gold loans. One can get a gold loan at an affordable interest rate at the bank. PNB bank is recommended for getting a gold loan. For more information one can check the online website or app of the bank. 

Loan to value is used by the lenders to define the ratio of the loan to the market value of the asset. The term is commonly used by the banks and non-banking financing companies(NBFCs). There has been a recent rise on the loan to value on the gold loan. The loan to value of gold loan has increased to 90%. Due to the covid-19 lockdown so many people were affected,  so the government decided to increase the loan to value on gold loans. Now people can avail higher loans against gold. LTV is a very important aspect of loan; it refers to the amount of the loan a borrower can avail against the gold as a collateral. The LTV for gold loans is quite high. Banks and non-banking financing companies can lend more money against the gold as per the new rule. This is one of the biggest advantages of getting a gold loan as the LTV offered is quite high and can help dealing with financial difficulties. 

There are various features of a gold loan. Some of the key features of the gold loan are listed below:- 

1. The processing time of the gold loan is faster in comparison to other secured loans. The application processing is faster. The loan is processed within 72 hours of the application.
   
   
2. Minimal documentation is required for getting a gold loan. Documents such as identity proof, residence proof and age proof are required. Anyone can get a gold loan providing these minimal documents.
   
   
3. Fast approval is one of the key features of the gold loan. In gold loan the banks and non-banking financing companies(NBFCs) provide fast approval. The loan is sanctioned into the account of the borrower after the verification of the documents.
    
4. The LTV value for gold loan is high up to 90%. One of the biggest advantages of the gold loan is that it has quite a high LTV value which makes it ideal in the financial emergencies.
    
5. An applicant does not need to provide salary proof. The only thing important for a gold loan is the purity of the gold. Without salary proof getting a gold loan is possible. 

Conclusion -

Gold loan has various features but one of the most significant features is its high loan to value(LTV). An applicant can get a higher amount of loan by submitting gold as a collateral to the bank or non-banking financing companies(NBFCs). There are also various schemes which can be availed during a gold loan. Gold loans are very advantageous for the people. Many people around the country are investing in gold. Investing in gold is a smart choice as they are very precious assets in today's modern times.

Read More:- The Role of LTV in GL Approval Process