Blog

A gold loan is the simplest form of a loan from which the cash requirements and the emergency requirement of the cash can be fulfilled. Under this method if gold in the form of jewellery or the form of a coin if is available with you then you are having the chance to take it to the bank or any kind of nbfcs where it will be valued as per the gold loan per gram according to the current date and after the valuation is done you will be  explained and will be given information about to what extent of the amount of loan can be availed what can be the probable rate of interest, tenure period etc.

Purity of the gold

Everything is not what it seems. If having gold does not mean that it will be accepted. There is a minimum requirement that needs to be fulfilled by the loan borrowers that the gold which they are availing for the acceptance by the financial institutions must have the limitations of purity from the 18 carats as low to as high as 24 carats. Any limitations below or beyond the upper and lower limits are not acceptable by most of the banks and institutions but in certain cases, there are exceptions for which proper approval is required. All these things are done based on the heating up of the purpose of proper execution and evaluation of the accurate loan amount so that the customer does not suffer after availing of the loan.

Rate of interest

One of the most important things about the gold loan as per gold rate today  is that it has the most unique and comparable feature that is the lowest rate of interest. Yes, you heard it right, the lowest rate of interest as compared to any type of loan. It has been noticed that banks provide good deals of the whole done at a very low rate of interest as compared to that of the NBFC but overall the gold loan is provided with the lowest rate of interest. That makes the customer feel so easy and finds it's equal to avail a gold loan in kind of any emergency as compared to that of the other options which are time-consuming, expensive and uncertain.

No headache of credit score

If you talk about the personal loan, car loan or any other types of loans there is always a requirement of a credit score which is a three-digit number issued by the credit rating agencies or the bureaus. In most unsecured loans there is always a risk that either there will be a surrender of the loan amount or the non-payment of the loan or the customer will become bankrupt. In this type of situation, the bank has no option but to add the loss under the heading of a bad day for a bad loan which is a total loss for the financial institutions. Canara Bank gold loan offers such schemes that along with no requirement of credit score there are also other benefits. In the case of a gold loan, there is no risk associated the gold available with the bank against which the loan amount was sanctioned will be treated as an asset and will be sold off or will be auctioned in case of any such incidents and the bank will be having the freedom to resell it accordingly and recollect the amount from there.

Conclusion

To conclude, we can see that there is no other loan that will be sanctioned or approved as fast as a gold loan as there is a very little requirement of documentation which only includes the address proof of identity and just some passport size photographs and the documents showing the ownership of the gold. This is the reason that gold is not only used in the celebration of the festival but also in the celebration of crossing over the difficult situations of life in the form of a gold loan

Also Read:- How much time does it take to sanction a gold loan? 

About half the population in India have safe boxes in their houses filled with nothing but gold. And that gold is the key to have many more of those lockers. The most straightforward and first step in that process is availing of a gold loan. How can a gold loan make me rich? It is a  good question with the most apparent answer. You use the loan amount to start a new business or expand one or invest in one, the options are endless, and when the money is back with profits, you can pay the loan amount with interest and have your gold back. It is as simple as that.

And especially now during this highly conspicuous spread of disease, the money has more possibilities to save you than the other way round. Banks and NBFCs now respond to their customers more fervently and are servicing in the most plausible and pleasurable way. With the advance in technology and the inventions of new machinery, you can avail of a gold loan from anywhere in the world using the internet and a cellphone. A gold loan requires the least amount of documents. All it needs is ID proof, photocopies of the applicant and the gold asset. Unlike many other loans, a gold loan doesn’t need income proof. 

Anyone can avail of it, no terms on the vocation of the applicant, no need for employment proof, bank account statement and most importantly, no CIBIL score necessity. CIBIL score is a three-digit score ranging from 300 to 900 and is considered extremely important for taking out a loan. But for a gold loan, and the bank or financial institute grants money even if you have a low or bad credit score. Although after availing of the loan, maintaining the score is a pre-requisite for future loan possibilities.

 Banks and Non-Banking Financial Companies(NBFCs) offer a gold loan with affordable interest rates and a maximum loan amount for a short tenure. The loan amount depends on the rate of gold on that day and its purity and weight. The gold rate today is Rs 48,620 for 10kg of 24-carat gold. The repayment options are flexible and exceedingly convenient. The loan is general, and therefore, the bank or NBFC doesn’t question you regarding its purpose. It can be used for medical emergencies, weddings, educational purposes, vacation, parties, business, construction, renovation and many more. 

Moreover, a gold loan offers a loan moratorium for three months if the applicant is in a highly challenging financial situation. During this period, the borrower doesn’t need to pay the interest amount. Still, they are only eligible for this facility if they’ve paid all the preceding instalments on time and have a healthy relationship with the bank. This facility is incredible and helping in this pandemic.

Bank of India gold loan is acclaimed for its best deals and offers in the market. The bank offers up to 90% of the gold’s value as the loan amount. The interest rate for hallmarked jewellery and coins in BOI starts from 7.35% per annum, and for regular jewellery, the interest rate starts from 7.40%. The margin of the gold loan for agricultural purposes is 15% to 20% and for other purposes is 25%. The bank also offers many repayment options such as yearly, monthly, quarterly, or bullet scheme payment depending on the borrower’s income.

 Conclusion
Availing a gold loan is effortless. The processing is easy, and no need for excessive documents. But one shouldn’t forget that a gold loan is a secured loan, and paying the monthly instalments on time is colossal. Moreover, the bank or NBFC has the right to auction your gold if you aren’t paying the interest amount for three months consequently.

Also read:- Key Points Regarding The Gold Loan Future 

What are the Merits of Gold Loan?

After learning about the process for applying for a gold loan, you'll want to learn about the benefits of taking out a gold loan and why so many people prefer this secured loan option.

1) Lower Interest Rates

Everyone needs their loan facility to have lower interest rates. Since it is a secured loan, a Gold Loan could be the better option for you. Your gold will be used as leverage to secure the loan. The interest rates on Gold Loans vary from 9% to 20% per year, but on average, they are between 10% and 16 percent per year.

2) Higher Loan Amount

A gold loan allows you to borrow the maximum amount possible against your pledged gold jewelry. The Loan-to-Value Ratio is used by lenders to calculate the loan amount (LTV). In the case of a gold loan, this ratio will range from 65 percent to 90 percent. This ratio indicates that you can borrow up to 90% of the total gold value and as little as 65% of the total gold value.

3) Flexibility in Repayment

• EMI Method –The Tenure will be paid in monthly installments, with a portion of the principal and interest paid each month.
  
  
• Interest is Paid Regularly – Pay the interest at regular intervals – weekly, quarterly, semi-annually, or annually , and the principal at the end of the term.
  
  
• Interest Payments in Advance – Pay the entire interest rate upfront and the principal sum at the end of the term.
  
  
• Bullet Redemption – Make no installments for the lifetime of the loan. Rather, pay both the principal and interest at the end of the year.
  
  

4) Faster Processing

If you need money as soon as possible, a gold loan could be the best option for you because you will get the loan sum much quicker than with other types of loans. As we stated in the procedure section, the loan sum is disbursed into your account as soon as the paperwork and authentication are completed. Furthermore, since you are using your gold reserves as collateral, lenders are fast to disburse the loan.

5) No Need for Credit History

If you've had several loan applications denied due to a bad repayment history, a gold loan might be a good choice for you because lenders don't look at your credit history before granting you the loan. This is due to the protection you have offered in the form of gold ornaments or bank-minted coins. A gold loan is ideal for those who are looking for a loan with lenient eligibility requirements. But better be aware of gold rates where you live. Suppose you are in Chennai, then it better to know about the Gold Rate Today at present as it will help you to evaluate your gold value.

6) Demerits of Gold Loan?

You can Lose your Gold Assets, As you might be aware, you obtain a loan against your gold assets in the form of jewelry and coins, and you receive your ornaments back from the lender after the loan has been completely repaid. However, you should keep in mind that if you do not repay the loan or default, you risk losing your properties because the lender will settle the loan by selling your ornaments. 

7) Impact on CIBIL Score 

Your credit history is not checked when the loan sum is issued, but if you miss a payment, your CIBIL score will be negatively affected. As a result, it's a good idea to pay back the loan in full as soon as possible, using whatever form you selected at the time of application. On top of that, on-time payments will help you increase your credit score.

CONCLUSION-

The gold loan is always seen as a better option if you had a bad credit history. Some many banks and NBFCs offer gold loans as they are aware of the opportunity that gold can bring to you and also to them. Banks like SBI offer gold loans at a cheaper rate. The SBI gold loan  offered is better in comparison with other banks. So it is better to go with market search to get the best deals for yourself.  

Also Read:- Avail Gold Loan Online 

Money against the gold ornament you pledge in a bank or Non-Banking Financial Institutes(NBFC) is a gold loan. The loan is fruitful at times of different needs and wants. The loan can be availed both in the online and offline mode. Using the internet and an electronic gadget, you can avail of this loan from anywhere in the world. Depending on the day’s gold rate, the value of the gold is determined. The gold rate today is Rs. 48,670 for 10kg of 24k gold.

The Bank of India Gold Loan is a trustworthy gold loan with millions of customers and borrowers. The bank offers online and offline services with the best interest rates and maximum loan amount. The processing is rapid, and the Bank of India(BOI) disburses the loan for several hours. In addition, the bank introduces various schemes and offers from time to time.

Features and benefits of availing a Gold Loan

1) Easy Processing: The processing of the gold loan is straightforward, mainly because of its minimum documentation requirement. Unlike many other loans, gold loans only need id proof, two photocopies of the applicant and the collateral. Therefore, banks and NBFCs quickly verify the loan and disburse the money.

2) No income proof needed: Generally, to avail of a loan, a bank or NBFC demands the applicant’s proof of income to know the payment capability. But for a gold loan, there is no need for income proof as the loan is secured.

3) No CIBIL score requirement: The credit or CIBIL score summarises a report by a company named CIBIL. The report consists of an individual’s past credits(loans or debt), personal information, banking information, employment information and other necessities. This score usually varies from 300 to 900 and is incredibly important for availing of loans. But for a gold loan, the bank or NBFC doesn’t have a passing score that one should minimum have; therefore, if you are in a highly critical position and need money, as soon as the possible gold loan is your best choice.

4) Loan amount: Sometimes hospital bills cross your annual income, and unfortunately, not many banks and NBFCs grant money that is required, but in a gold loan, nothing matters as long as you have pure and valuable gold in your hands. The loan amount entirely depends on the gold. Therefore the higher the purity and the weight of the gold, the higher the principal amount. Lenders usually grant about 80% of the asset’s value in cash or cheque or net banking very soon after the application’s approval.

5) Low-interest rate: Just because you are in an emergency, you shouldn’t take the first loan you see. It needs to be thoroughly verified and should have the lowest interest rate. Fortunately, gold loan provides loan amount with low-interest rate compared to many other loans.

6) Tenure: The loan term of the loan is known as tenure, and it varies from 3 months to 24 months for gold loans in most banks and NBFCs. The loan is short term and passes very quickly, so it is the best for medical causes.

7) Repayment options: Installment amount as an interest to pay at the beginning or the end of the month till the loan ends are EMI and are highly popular in many loans, including gold loan. But a gold loan has another repayment scheme known as the Bullet scheme, where you can pay the interest amount on the whole at the end of the tenure with the principal amount.

8) Processing and prepayment charges: The fee incurred for the processing and approval of the gold loan is a processing fee. The fee is a maximum of 1% of the loan amount. Prepayment or preclosure charges are procured if the borrower closes the loan sooner than the end of tenure. The fee is NIL in most banks and NBFC, while a few charge a maximum of 1% of the outstanding loan amount.    

Must Read:- What if I forget my Gold Loan repayment date? 

People nowadays opt for a gold loan as it is accessible quickly at low rates of interest than that of the Pawn Brokers. Gold loans are available by securing gold ornaments or Bank coins to a Bank or Financial Institution. The gold articles or jewellery pledged are protected with the bank and are paid back to the customers after the loan proportion is indemnified. For gold loans of Rs 25 lacs or more ITR and PAN card of the applicant is a must. And if the applicants’ annual income exceeds Rs 5 lakhs as per the Regulatory Guidelines, the Permanent Account Number or PAN card is compulsory. Any Indian citizen who attains the age of majority is competent to get a gold loan and required to furnish all essential documents to get the loan. In June 2021, Rs 4621 was the loftiest rate of Gold Loan Per Gram. According to the reports of the Reserve Bank of India, the aggregate loan disbursed by the commercial banks in India was almost Rs 21,645 crore till the second week of October. On 11th October the amount went up to Rs 97.9 lakh crore. The growth of gold loans also remained tepid till October 11. The credit growth on a year on year basis also dropped from 14.4% to 8.8%. Gold loan companies at times show meagre gain but remain stable due to the increasing price of gold in the Investment market.

A loan Mela announced by the government for 9 days in 250 districts across the whole country, was basically arranged to strengthen the consumption and to restore the demand for loans among the people. This Loan Mela was hit, and Rs 81,781 crore was disbursed by State-run banks within October 1-9 as announced by the Finance Secretary at a media conference in October. Gold rates and loan to value better known as LTV, have gone down by 16% and in the last quarter, there was barely any growth registered. Even there is a decline in portfolio around 4 to 5% but the underline collateral remains steady. The gold loan demand is pretty good and new customer acquisition is also steady. The gold loan business is doing satisfactorily, except 7 to 8% provisions in MFI. In India, nearly every bank delivers gold loans to their customers with interest rates varying from 7.35% to 12.5% and the lowest processing charges.

A Comprehensive Comparison Of Gold Loan Interest Rates In Various Banks Are Given Below:-

1. Punjab National Bank:- Punjab National Bank delivers a gold loan @8.75% for 12 months and the processing charges are 0.7% of the loan amount borrowed plus taxes.
   
   
2. ICICI Bank:- ICICI Gold Loan offers gold loan @9% for 12 months and the processing fees is only 1% of the loan amount. The bank offers no foreclosure charges with a very transparent application process.
   
   
3. HDFC Bank:- HDFC gives gold loan @ 9.5% for 24 months with 1% of the loan amount as processing charges.
   
   
4. Manappuram Bank:- Manappuram Finance provides a loan @9.9% for 3 months with Rs 10 processing fees to be paid at the time of settlement of the loan.
   
   Several alternatives are available to the applicants of gold loan to choose from according to their requirements and budget. Gold loans are risky as there are possibilities of the gold will be forfeited if timely the loan is not paid back so prior planning is a must before opting for the same.

Also read:- How To Manage Gold loan 

Gold loan is one the safest loan. Most people believe in investing in gold as it can be used as a precious asset in financial emergencies. Gold Loan Calculator is an important tool that can help the borrower calculate the loan amount availed from the bank or non-banking financing companies(NBFCs). The borrower can easily apply for a gold loan all around India from any banks or financing companies. An applicant always recommends applying for a gold loan at a verified financing company to avoid any loss. 

Canara Bank Gold Loan can be applied online from the bank’s website or offline by visiting the bank’s nearest branch. The bank offers various repayment options which a user can select as per the convenience. The bank also provides several schemes on gold loans. For more information regarding the gold loan, one can check the official website of the bank. 

Gold loans can be used for down payments very conveniently. A gold loan is not a fixed loan and can be easily used for various purposes. One can conveniently avail of a gold loan for down payment purposes. 

The various advantages of taking a gold loan are listed below:- 

• High loan value:- Gold loan has a very high loan value. One can quickly get a loan of upto 20 lakh. Many banks and non-banking financing companies(NBFCs) provide loan upto 20 lakh on gold loans after evaluating the gold ornaments provided to the lender. The loan value depends on the amount of gold ornaments given to the bank and the purity of the gold. One can easily take a gold loan in times of emergencies as the loan value is high.
  
  
• Prepayment and foreclosure facilities:- Many banks provide prepayment and foreclosure facilities on the gold loan. One can easily prepay the loan. The foreclosure charges are very minimal in gold loans. The facility can be avail easily when needed. Prepaying your loan can help you in decreasing your burden. It is always recommended to prepay the money if possible by the borrower.
  
  
• Safety of the gold:- The banks and non-banking financing companies(NBFCs) provide full safety of the loan. The gold submitted by the borrower is kept at the secured locker at the bank. An applicant need not worry about the security of the gold ornaments submitted to the bank. After the successful repayment of the loan to the lender, the gold ornaments are returned safely.
  
  
• Flexible tenure:- The tenure provided on the gold loan is quite flexible. A borrower can choose the preferred tenure as per the convenience. Choosing the right tenure is very much crucial while availing of the gold loan. The shorter the loan tenure, the lesser the interest rate charged. It is always recommended for the applicant to choose a shorter tenure to avoid extra losses. Moreover, An applicant should choose the preferred tenure as per the convenience to avoid any future debt.
   
  
• Additional schemes:- one can avail gold loan and can get additional schemes. The additional schemes offered by the bank can help the applicant in saving money. Various banks and non-banking financing companies(NBFCs) provide schemes on the gold loan, especially during the festive seasons. An applicant saves a lot of money while availing of a gold loan during a festive season. Many public banks also provide various schemes on the gold loan, which the applicant can avail.
  
  
  Conclusion :
  
  The loan value depends on the amount of gold ornaments given to the bank and the purity of the gold. The gold loan has many perks. One of its biggest perks is that it can be used for several purposes. Gold loan is one of the most advantageous loans in today's modern times as it has helped a lot of people during financial difficulties. Gold loan is also a very convenient option for down payments.

Must Read:- Some categories of Gold Loan 

Gold is a precious metal like platinum silver, and it is shiny and brings shine and happiness to the lives of the people by providing financial help in the form of gold loan from the different types of loan providers like banks and nbfcs. The hallmark concept was first introduced during the fourth century only, which was first done during the time of precious metal silver. Then it is continued to be used in different precious metals like gold and platinum. So we can explain the full procedure and complete the certification of purity and fineness of gold, which is termed hallmarking. In our country, one of the most important challenges in the problem can be seen frequently that it has increased India’s condition for buying in kind of gold with low Gold Loan Interest Rate or availing a gold loan during the time of emergency.

Previously there was a nose search problem, but as the technology got to advance, the fraudulent activities have also got increased due to which the cases of false gold it has been noticed in different opportunities, and this is the reason that starting of the hallmarking system in India BIS after which customers are feeling much safer as it has been done for the safeguard of the interest of the gold customers who are purchasing the gold for availing it in the form of a loan. This is why not only for the purchasing of the gold but also for availing alone in the form of a good loan where the original school will be required to pledge in the bank. So the Financial institutions are also guiding the customers to use the goal of having hallmark as it will prevent them from cheating and fraudulent activities to be coming in the future can happen at any time.

Along with the hallmarking of the gold, some significant requirements need to be followed by the person who wants to avail of a gold loan and enjoy the financial boon. Many lenders or loan providers in the market do not exceed the gold below the purity of 18 carats. Canara Bank Gold Loan has some such facilities to provide betterment for the customers. The different types of stones on the diamonds attached with the gold jewelry will not be treated as a part of the gold during the valuation of the gold either as per the weight or as per the value. On the other side of the head and some limitations, rules, and regulations are also there for the gold coins in some cases and places. The coin’s purity might be asked to be more than the normal purity limits and weight. Sometimes, the weight is more than 350 grams, and most Financial institutions do not like to maintain it.


Before availing of any type of loan, especially in the case of the gold loan, there is always a necessity that is kept as the gold loan is preferable by almost all the sector of the society because previously there was a lack of information along with the connectivity. The flexibility in different kinds of payment methods will make the person feel so that if one payment is overlooked or forgot to research what type of payments like that of monthly instalments. The first and foremost, if we can see, is a picture of the process of paying the interest every month but repaying the principal at the last turn off period. One of the most significant advantages of paying in this type of loan that there will be less working during the initial time of the loan term. On the other hand, there is a concept of bullet repayments where there is a requirement to pay the whole interest and the principal amount at the end of the loan term.

Also Read:- What Is The Procedure For Gold Loan, Advantage And Disadvantage? 

HOW DOES A GOLD LOAN WORK?

In a gold loan, the borrower applies for a gold loan by pledging his gold articles as collateral or security. The borrower gives these articles as a security, that, in case if the borrower will not be able to repay the loan,  the money lender or the bank, which has granted the money, has all the rights to sell that gold takes the amount of money.

A gold loan works in the following steps: -

1. You need to visit the bank with the gold articles that you want to pledge.
   
   
2. The moneylender will check the purity and the value of the gold.
   
   
3. After checking the value of the gold, the price of the gold is decided.
   
   
4. Then, after deciding the market price of the gold, the amount of loan will be decided that the bank will grant you. It can go upto a maximum of 80% of the value of the gold that is pledged.
   
   

 JEWELLERS CAN NOW REPAY PART OF GOLD LOAN IN PHYSICAL LOAN: -

The bank provides an option to the borrower to repay a part of the gold metal loan (GML) in physical gold.According to the instructions given by the Reserve Bank of India, the banks who are authorised to import the gold metal and the banks who are designated to participate in Gold Molestation Scheme 2015 can give the gold metal loan to the jewellery exporters or the domestic manufacturers of the gold jewellery. Earlier, the gold loan was allowed to be repaid in cash (Indian currency - rupees), equal to the value of the gold. But now the Reserve

 Bank of India has made some changes which are as follows: -

• The banks shall provide the option to repay a part of the gold metal loan in physical gold of one kg or more to the borrower.
  
  
• The gold metal loan should have been extended out of the local sources. The RBI said that the repayment of the gold loan has to be done using the India Good Delivery Standards (IGDS).
  
  
• The bank also added that the gold metal has to be delivered directly to the borrower.
  
  
• Another condition that was laid down by the Reserve Bank of India for the replacement of the loan was that the agreement of the loan should consist of the details of the options that can be used by the borrower. The details of the acceptable standards and the manner in which the gold has to be delivered for the repayment of the gold metal loan

ADVANTAGES OF A GOLD LOAN: -

The following are the advantages of a gold loan which are boon for the borrower to obtain Gold Loan: -

• Faster processing- A gold loan is a secured loan, and therefore, it includes minimal documentation and lenient eligibility criteria. A credit score is also not required for the approval of a gold loan. Therefore, the money lenders generally disburse the gold loan in a few hours. Axis Bank gold loan offers minimal documentation.
  
  
• Lower interest rate-  The interest rate on a gold loan is low compared to the other loans, such as a personal loan or a car loan. If you will attach another asset as security, then the interest rate can be lowered further. The interest rate can be calculated with a gold loan calculator.
  
  
• No processing fee-  Most of the banks do not charge a processing fee for the gold loan. If some of the banks or the money lenders charge a processing fee, it will be only 1-2% of the loan amount.
  
  
• No foreclosure charges- There are no foreclosure charges on a gold loan. However, if a bank or a money lender asks for some, it will be only 1-2% of the loan amount.
  
  

No income proof needed- There is no need for any income proof when you are applying for a gold loan because you are 

Read More:- Gold loan in Covid-19 

WHAT IS A GOLD LOAN?

A gold loan is a loan that one can avail of from a bank. It is a secured loan which means that when a person wants to take a gold loan, he needs to pledge his gold articles as collateral or security. The gold will be kept safely by the bank or by the moneylender, and after the successful completion of the loan and the repayment of the EMIs, the gold that the borrower pledged is given back to him. In this loan, the loan amount depends on the market value and the purity of the gold rather than the source of income. If a person is not earning at the time of availing of a loan, the bank can also accept his application.

WHAT IS AN INTEREST RATE?

When a borrower takes a loan from the bank, he has to repay the loan to the bank or the moneylender with interest after the disbursal of the amount of money. This is how the banks make money. So, when a person takes a gold loan from a bank, he will need to repay the loan with the gold loan interest rate. The interest rate varies from bank to bank and from one moneylender to another. Some of the banks offer lower interest rates on the gold loans that they provide. 

BANKS THAT CHARGE THE LOWEST INTEREST RATES ON THE GOLD LOANS STARTING FROM 7%: - 

The gold deposited by the borrowers support the gold loans, and therefore, they do not require high-interest rates. The time taken to disburse the loan is very little as compared to the other loans.

The following are the top five banks that charge the lowest rate of interest on the gold loan: -

• Punjab and Sind Bank: - The rate of interest offered on the gold loan is 7%.
  
  
• Bank of India: - The rate of interest offered on the gold loan by the Bank of India is 7.35%.
  
  
• State Bank of India: - The interest rate on a gold loan offered by the State Bank of India is 7.5%.
  
  
• Canara Bank: - The rate of interest offered by the Canara Bank on a gold loan is 7.65%.
  
  
• Union Bank: - The interest rate on a gold loan offered by the Union Bank is 8.2%.

FEATURES OF A GOLD LOAN: -  A gold loan is one of the cheapest and the most hassle-free loans. A person can get immediate cash. The money lenders or the banks do not require high credit scores. The time taken to disburse a gold loan is also less as compared to the other loans. 

Following are some of the features of a gold loan: -

• Tenure: - The banks issue the gold loans for tenures of upto twoIn addition, the years. You can renew the loan after that tenure.
  
  
• Collateral: - In a gold loan, you have to keep your gold as collateral or security to the bank. The banks can offer upto 80% of the value of the gold as the amount of loan. The higher the loan to ratio value, the higher will be the rate of interest.
  
  
• Repayment: -  A person gets flexible repayment options to repay a gold loan. He can either go for a regular EMI option or the bullet repayment method. In the case of a gold loan, partial payment is also available HDFC gold loan offers flexible options.
  
  
• Credit score: -  You do not have to worry if you do not have a credit score or a good credit history. Your loan application will be accepted if you have a low credit score.
  
  

Documentation: -  The documentation process involved in a gold loan is really easy and minimal. There are not many documents required, just the basic ones such as identity proof, address proof, etc. In some of the banks, income proof is also not needed to apply for a gold loan.

Must Read:- Simple Tips To Avail Gold Loan 

In today’s world, no one knows when the need for quick funds arises and for that, a gold loan is the best solution as a gold loan can get you the fastest funds to meet your requirements. But there are certain things or key points that one should keep in mind before availing of a gold loan as with the growth in the market, the risk has also increased, so it is important that one should be cautious and keep important points in mind before taking a gold loan. But now, people have come to realise that gold kept idle in bank accounts can be rather used to get quick funds whenever needed. As gold loans have emerged as one of the most popular ways to secure quick finance. In addition, gold loans can be used for any purpose unlike other types of loans that have a specific purpose.

So, Let Us Discuss Some Of These Important Points:-

• Loan Amount:- As a gold loan is a secured loan, the amount of a gold loan will depend on the gold that you pledge as collateral. RBI has chosen the loan-to-value ratio as 75% of the total value of gold that is pledged. The amount of loan that you will get will also depend on the lender you choose to get it from.
  
  
• Interest Rate:- The interest rates of Gold Loan varies according to the lenders and depend on a lot of factors such as loan amount, LTV ratio, loan tenure and many other factors. For example, if the LTV ratio is high, the lender will tend to charge a higher rate of interest to compensate for their risk. Therefore, one should compare the gold loan interest rate from secured as well as an unsecured loan to check the most suitable among them.
  
  
• Processing Charges:- Usually gold loans have zero or minimal processing charges that are as low as 1%-2%, it depends on the bank or lender how much fees they will charge, some might charge a fixed percentage whereas others might charge some percentage of the whole amount of the loan.
  
  
• Loan Tenure And Repayment Tenure:- The gold loan is a short term loan with a flexible tenure that can range between 7 days to 3 years. This can vary from different lenders and banks. Banks and lenders also offer a variety of repayment options along with the usual monthly instalments mode. Borrowers can choose to repay the principal amount at the end along with 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 prior to applying for a loan by using the EMI calculator to know if he will be able to repay the instalments or not. One can choose the one according to their convenience. 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.
  
  

Now, these are some of the important points that one should keep in mind before taking a loan as one should make sure that every condition is well-suited for him before stepping into taking a gold loan. Now,if we talk about the lenders or banks, one should make sure that they avail gold loan from a trusted source as you should have trust in the bank or lender you pledge your gold with. So, here is a solution to this, Muthoot Finance Gold Loan. They are well-known for their years of service in the field of lending loans and are trustworthy with your pledged gold. They offer you attractive deals under gold loans from which one can choose what he finds to be the most suitable. They have easy terms and conditions with minimum document requirements. So, one can avail a gold loan from them.

Also Read:- What Are The Benefits Of A Gold Loan? 

Gold has become an important asset over time. One can easily use gold as a security against loan to avail gold loan. The documents required for applying for a Gold Loan 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 asked by the lender. While applying for a loan fill out the application form carefully. Try to avoid errors for fast approval of the loan.

IIFL gold loan can be applied online as well as offline. One can also get various schemes on gold. IIFL gold loan charges reasonable interest rate and processing fees on gold loan. The internet rate starts from 9.24%. You can also choose any payment option as per the convenience as the IIFL loan offers various payment options. For more information regarding gold loan can visit the official website of IIFL gold loan. Getting a loan is a big deal. The applicant should be careful while applying for a loan and also they should try not to share any sensitive information online to avoid loans. One should always take a loan from a verified lender to avoid any kind of loss. 

Follow below listed tips to save yourself from fraud lenders :

Check online :- 

Before applying for a loan check online all the information regarding the chosen financing companies. It is always recommended to take a loan from a verified bank or non-banking financing companies(NBFCs). Guard all the information of the chosen financing companies online before filling out the application form. 

Monitor your account :- 

Another very much crucial step is to monitor your account daily. Try to install a mobile banking app and check your account balance, account activity and transactions. While applying for a loan always keep a close track on all your account activities. Report your account if you find anything suspicious. 

Check your credit report :-

Always try and check your credit report timely. Review your credit report properly. Beware of anything suspicious on your credit report. 

Filter your phone calls :- 

Always try to filter your phone calls. Try to avoid phone calls and messages from a fake number. Do not answer any non-essential message. Keep a closer look on phone calls and messages and try to avoid anything suspicious. 

Don't share your bank information :- 

One should not try to share any kind of bank information to avoid loss. Do not share your bank details to anyone from your phone or social media. Bank details should be kept like a secret without sharing with anyone. People can avoid any loss by not sharing the personal bank information to a non verified lender. Always be cautious and careful of the activities you perform online. 

Secure your internet connection :- 

This is another important point before applying for financing help. Try to secure your internet connection to avoid any kind of loss. Protect your Wi-Fi by setting strong passwords. Also be cautious about the information you are sharing online. Protect yourself from fraud lenders by not sharing any sensitive information online. 

Report anything suspicious :- 

An applicant should carefully and quickly report suspicious activities. If you find anything suspicious happening in your account report quickly to avoid further loss. And also if you find the behavior of the lender suspicious, report him quickly.

Conclusion :-

These Days many fraud cases related to lenders are being registered. One should be careful while availing loan. People should also be aware of the lenders and research about them carefully online. One should try not to share any information or bank related details to any lender without verification to avoid loss. Monitor your bank account on a regular basis. Avoid any spam messages or calls received. Protect yourself from fraud lenders by protecting your internet with strong passwords.

Must Read:- Unique Features Of Banks 

Gold loans are popular in India. People in rural as well as urban areas rely on gold loans in the financial crisis. It has become one of the most trustable loans over the years. It requires easy application and can be applied from almost every bank and non-banking financing companies(NBFCs). Gold Loan Calculator is the online tool used for calculating the loan amount availed accurately. 

Future Capital Gold Loan can be availed through an online website or the nearest branch. It offers an affordable interest rate on the gold loan. It provides flexible loan tenure to the applicant. The application process is quite easy. 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. Future capital is recommended to get the gold loan and avail various discounts. 

The loan disbursal process of gold loan is quite fast and convenient for the applicants. The amount is sanctioned in the account of the borrower after the documents verification is completed. The amount is sanctioned between 24 to 72 hours. Once the purity check of the gold is done and the documents are verified the loan amount is sanctioned in the applicant's saving account. The fast loan disbursal of gold loans is very much beneficial for the borrower. 

Few important things to consider before applying for a gold loan is listed below:- 

1) Compare Interest Rates:- The interest rate offered by various banks and financing companies may differ. Try to choose a lender who offers minimal interest rate on the gold loan. Before filling out an application form always remember to compare different options to get the best possible deal on the gold loan. 

2) Credibility of the lender:- This is yet another important point to consider before applying for a gold loan. Always check for the credibility of the lender online for avoiding any kind of loss. Try to choose a reputed lender. Choose a lender as a private bank or public bank or non-banking financing companies(NBFCs). 

3) Choose tenure:- One more important point is to select a proper tenure for a gold loan. The shorter the loan tenure less will be the interest rate charged. Choosing a proper tenure is important to avoid any kind of loss. Many banks and non-banking financing companies(NBFCs) offer various tenure options to the borrower. One should compare the various tenure options offered by different lenders to avoid loss and get the beat deal. Moreover, one should choose the loan tenure according to the financial conditions. 

4) Repayment Method:- There are various repayment methods available at the banks and non-banking financing companies(NBFCs). One can choose the preferred repayment option as per the convenience. Remember to choose the right repayment option as per the financial convenience. 

5) Check the market price of the gold:- Before applying for a gold loan always remember to check its market price. The higher the market price the higher will be the loan amount availed. One should always apply for a gold loan keeping in mind the market price of the gold to avoid any loss and get the best possible deal. 

All over India people opt for gold loans in times of the financial crisis. It is a multi purpose loan and can be used for various purposes as per the need of the borrower. One can use the loan amount availed for educational, business, travel, house repair, buying a car, marriage and many other personal purposes. One needs to plan the entire process before applying for a gold loan to avoid any kind of a loss. One also needs to evaluate the gold purity before applying for a gold loan. All the necessary information regarding gold loan and its fast loan disbursal is given above.

Must Read:- Gold Rate Today