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One of the major reasons people find it convenient to go for gold loans is its affordable rates of interest. So, now we are going to talk about various aspects that are involved in the availing of gold loans. So, let me tell you that there is not much difference between gold loans offline and gold loans online. It is just that under gold loan online, one has to do the same procedure that they would do by visiting a bank branch under the offline gold loan. You can avail of a loan against the gold that you once bought or made an investment in and use it for your urgent need for funds. Gold loans have many benefits because they have gained a lot of prestige in the market and have become popular amongst people.

So, let us discuss the process of getting a gold loan, so the steps are as below:

1) Gold loan application:

The first step in this process is to opt for a loan amount that you would want from the lender, various institutions offer gold loans, and before going to one of these, you should make sure that you have compared different banks and lenders and choose the most suitable one for this process. There are two methods for the application process, that is, online and offline. For the online process, you need to go to the website of the bank or lender and apply for the loan there, whereas, in the offline method, you need to go to the nearest branch and fill the application form there.

2) Gold submission:

This is the most important step to get a gold loan; your bank or lender’s website needs to submit the gold ornaments as security or collateral. You must not forget that the submission of gold cannot be made online, so you need to visit the branch and submit your gold.

3) Gold evaluation:

The third step is gold evaluation. Under this process, the lender or bank will calculate the total value of the gold you have pledged. This is determined by the current market value of the gold, and the value of the gold will tell how much loan you will get for the gold pledged. So, it will majorly depend on the value of your gold. One can get a maximum of 90% of the gold value as the loan amount. And the lenders give the amount according to the Gold Loan Per Gram.

4) Documentation process: 

In this process, you will have to submit a few documents to the lender. This involves simple documentation with minimum document requirements such as identity proof, residency proof, income status, passport size photographs, etc.

5) Eligibility, Authentication, and disbursal:

After all the steps are done, the lender checks your eligibility. Each bank and lender has a different set of conditions based on which they check eligibility. These banks' or lender’s website factors generally involve the borrower’s age, purity of the gold pledged, etc. A person with a low credit score can also get a gold loan. After all this, the authentication is done, after which the amount of the loan is disbursed into your bank account. This is the whole process of applying for a gold loan and what is required to get a gold loan approved.

If we talk about a gold loan, everyone must have heard of the name of HDFC Gold Loan as they are quite popular among this line of lending against pledged gold. HDFC can be a really good option for you to get a gold loan as they offer a lot of different schemes to choose from. So one can compare these different schemes on various bases before applying for a gold loan under one of these schemes.

Read More:- Is Gold Loan Rate Is Low 

Gold loans are secured loans that are issued against collateral and come with quite a low rate of interest that is very attractive. There are many benefits of gold loans such as:

• Eligibility criteria: In case of gold loans, eligibility criteria is important in quite a few areas such as age which should be between 18 years to 75 years, then the profession of the applicant is also very important criteria for the gold loan, credit score is not that important when it comes to applying for a loan due to it being a secured loan.
  
  
• Rate of interest: Rate of interest is the factor that makes borrowers choose gold loans over other types of loans because gold loans require a low rate of interest. The rate of interest under gold loans range between 9.24%-26% and can vary according to different banks that apply for the gold loans. Usually the amount of the loan is given on the basis of the gold rate today. And banks and lenders only offer up to 90% of the total value of gold during that point of time, in the market.
  
  
• Processing fees: This is the charge paid by the borrower to the lender for the time between the submission of the loan application and the bank’s approval of the application, this is the fees that lenders charge for checking the application and documents with it. Now, these fees depend on different banks and can vary from bank to bank. Some might charge a processing fee as low as 1%-2% while others might charge it in the form of a particular percentage on the whole amount of the gold loan.
  
  
• Repayment tenure: Every loan has a tenure which is kind of an expiry date and within that tenure the borrower is liable to repay the principal amount along with the monthly installments. Now, since gold loans are short term loans they can be repaid within a time period of one year. And one can check their monthly installments through the EMI calculator which is provided on the website of every bank so that they can calculate their suitability of being able to pay back the principal amount along with the monthly installments within the stipulated time.
  
  

Now, these are some of the benefits that gold loan offers over any other type of loan and gold loans can be used for any purpose unlike home loans etc. which must be used for the work they are available for. These are some of the reasons why borrowers' first choice is a gold loan and not any other type of loan.

Now, there are many banks and lenders in the markets that offer you a gold loan but not every bank and lender is trustworthy with your gold pledged with them. So, one should make sure that they should take a gold loan from a trusted bank only. And Yes Bank Gold Loan is the solution to this as they offer loan with minimum documents some of which are Identity proof, that includes, PAN card, driving licence, voter ID, Valid passport etc., Address proof, that includes, electricity bills, water bills, telephone bills, Aadhar card, PAN card, driving licence, voter ID, Valid passport etc., Other necessary documents such as passport size photographs, proof of 5 years of business continuity (for self employed individuals) etc. One should always make sure to carry the original copy of the documents along with photocopied documents so that the process can be done without any delay or mistakes. They also provide flexible tenure and low rates of interest with attractive offers. In addition, your gold is safe as they are a trusted bank which has provided services of loans for years.

Also Read:- Gold loan for unemployed 

There are plenty of options to pick from while these loans can meet certain financial needs, an online gold loan outperforms them all in ease, quickness, and utility. Apart from the fact that they may be applied for it any time and from any location, the gold loans feature require fewer documentation requirements, a lower interest rate, and are approved faster than conventional loans. The Gold Loan process is very similar to that of other secured loans. In this case, you take your gold items to a lender along with the necessary paperwork. The lender assesses the gold items and confirms the paperwork presented. The lender approves the loan amount based on the evaluations. According to the loan agreement, you must repay the principal and the interest at the end of the loan period.

The Benefits Of A Gold Loan

Because gold loans are based purely on actual assets, you can use them for various objectives in financing. Here are some of the most common purposes for a gold loan:-

• In Order To Pay For Your Education:- Many colleges provide student loans to cover tuition, hostel fees, books, and other relevant expenses for college admission. However, education or student loans are subject to a number of conditions. Here a gold loan can pay a significant loan because it provides immediate cash to the person in need. Applying for a gold loan can be a reasonable solution if the institution is not suitable or if the applicant's income is insufficient to qualify for a student loan.
  
  
• Automobile Finance:- A gold loan can also be used to finance the purchase of a vehicle. Unlike a car loan, gold loans do not need the seller to provide any documentation, nor do they require evidence of income. You may get a gold loan online with great ease to buy a new or used car, scooter, or heavy vehicle for personal or commercial use.
  
  
• Use Of Existing Assets:- Borrowers who take out a gold loan might put their jewellery, gold bars, or coins up as collateral. This means that the consumer has the option of owning the jewellery and borrowing against it at any time. When the loan is paid off, the jewellery is securely returned to the customer, or it can be reused.
  
  
• Whether It's A Business, Startup Or A Small Shop:- For individuals in need of quick financial planning, gold loans are suitable. You may have an excellent idea for a business, but a lack of necessary funds is required to get it off the ground. This is frequently the case with female entrepreneurs who have the expertise but not the funds to start a business at home. On the other hand, a gold loan can assist finance any form of business, big or little. Bank has introduced a new gold loan scheme with a lower interest rate of 7.35% for various industries. The loan can be used for multiple purposes. The interest rate on a Bank of Baroda Gold Loan starts at 7.35%, with a processing fee of 0.5% of the loan amount.
  
  
• Multiple Usages :- A gold loan can also be used in renovating the house , a person can take out a loan with the help of a loan and can invest in many ways . Renovating a house is not in the hands of middle class people, but with the gold loan, it is possible now people can dream big .
  
  
• Quick Approval And Payment:- During a business's financial emergency, owners rarely have the time to go through a long loan application and approval process. Despite this, most banks and NBFCs impose a number of formalities that lengthen the process. A loan manager from the company calls you to fill an online application to assess the worth and purity of the pledged jewellery. Applicants obtain immediate approval after the gold is valued and the KYC documents are submitted. Furthermore, after approval, the loan amount is sent to the borrower's account within 30 minutes.

Read More:- Why You Should Choose Gold Loan 

FEATURES OF A GOLD LOAN: -  

The features of a gold loan can be summed up in the 

following points: -

• PURPOSE- You can avail a gold loan to fulfill your financial needs like for medical emergencies, educational purposes, for a vacation, for a wedding, etc.
  
  
• SECURITY- The gold that has been pledged by you with the financial institution or the bank or the money lender acts as a collateral or security against which the amount of loan is provided.
  
  
• TENURE OPTIONS- The tenure for the repayment of a loan can range between 3 months to 36 months.
  
  
• FEES- The charges and the other fees that are applicable on a gold loan are - late payment charges, processing fee, valuation fees, non-payment of interest, etc.
  
  
• REPAYMENT OPTIONS- There are different repayment options available that are offered by the money lenders to the borrowers.
  
  These are as follows: -

1. Repayment of loan in Equated Monthly Installments (EMI).
   
   
2. Payment of interest upfront and then, the repayment of the amount of loan at the end of the tenure of repayment.
   
   
3. Payment of interest every month and then, the repayment of the amount of loan at the end of the tenure of repayment.
   
   

• REBATES- Most of the lenders offer discounts on the existing interest rates on the gold loan, if the borrower repays the existing EMIs on time. This rebate can go upto 2% on the original interest rate.
  
  
• SAFETY- The gold that you will deposit to the bank or to the money lender as a collateral or security to the bank is absolutely safe. You do not need to worry about the gold that you have deposited. Your gold will be kept in a safe place. And after the successful repayment of the loan, the gold that was deposited by you as a security will be given back to you.

DOCUMENTATION: - The documents that a borrower needs to have while applying for a gold loan are as under: -

• Two passport size photographs.
  
  
• ID Proof- Driving License, PAN card, Passport copy, Aadhaar Card, Ration card, Form 60, etc.
  
  
• Address Proof- Driving License, Voter ID, electricity bill, Ration Card, Passport copy, registered lease agreement not older than three months.

BENEFITS OF A GOLD LOAN: - 

• MINIMAL DOCUMENTATION-  Most of the banks offer a simple documentation process as it is easy both for the borrower and for the lender too. The borrower needs to submit only the necessary documents and there is no need for any income proof. SBI gold loan ensures minimal documentation.
  
  
• WAIVER ON FORECLOSURE CHARGES-  Most of the banks does not levy any foreclosure charges on the loan after a minimum time period. So if a borrower wants to foreclose a loan, he can pay off the entire amount without paying the foreclosure charges.
  
  
• LOW INTEREST RATES- The interest rates on a gold loan are lower as compared to the other loans. This is because the borrower provides a security to the bank so, the rate of interest is low in a secured loan.
  
  
• FLEXIBLE REPAYMENT TENURE- The minimum tenure for the repayment of a gold loan is six months and the maximum tenure for the repayment of a gold loan is 24 months. However, a borrower can choose the tenure according to his needs. You can also get a high maximum LTV (Loan to Value) ratio of 75% of the weight of the gold that was calculated.

CONCLUSION: - When a person is in need of instant funds, the most safest option is to avail a gold loan. He can make use of the gold that has been lying in his cupboard for ages with no use. He can use it to cope up with the situation and after attaining the loan, he has to repay the amount back with interest. After the successful completion, he can get his gold back too.  The gold loan interest rate is also really low as compared to the interest rates on the other loans. Therefore, it is an affordable option to apply for a gold loan. The main important thing in this loan is the purity of the gold.

Read More:- Short Term Use Gold Loan 

Banks and Non-Banking Financial Companies are present to provide many financial services, and the most reputed loan is gold loan because of its many advantages.

Features of a gold loan

Loan amount: The bank or NBFC depending on the value of the gold sanctions loan amount. The lender checks for the purity and the weight of the gold article. The purity should be in the range of 18k-24k. The higher the purity and weight, the more the loan amount. Most banks and financial companies accept any type of gold article as collateral. But few financers don’t take gold coins or bars. So 80%of the gold’s value is granted as a loan amount, and the minimum loan amount is Rs 1500 in a few financial institutes. The gold loan per gram is the standard term financiers use to calculate the loan amount based on your gold article.

 Tenure: The loan term of the gold loan is known as tenure. It ranges from 3 months to 24 months in most banks and NBFCs.Some banks even offer up to 4 years as loan terms.

Interest rate: The rate of interest is a percentage of the loan amount availed and has to be paid each month as Equated Monthly Installment(EMI) without default. The interest varies from 7.5%-20%, and it depends on the loan amount and tenure acquired. The interest rate for the ICICI gold loan starts from 9%.

 The processing fee is incurred for the processing and approval of the application for a gold loan. The charge is usually 1% of the loan amount.

Prepayment charges are procured if the applicant closes the loan account before the end of tenure. The cost is NIL in many banks and NBFCs but few charge up to 1% of the loan amount with other tax rates.

Overdraft facility

Another added advantage of availing this loan is the overdraft facility. Using this facility, the loan amount borrowed can be used lie a credit card anywhere, and you can pay the interest amount whenever you wish. But if the lender asks for the interest, immediate payment is required. This facility is used by millions of gold loan customers and has excellent reviews.

 Various purpose of gold loan

Higher education: The amount availed using gold articles can be used to make yourself more knowledgeable and earn a degree from anywhere in the loan. Unlike study loans that can be used only for the tuition fee of the education, the gold loan can be used for other purposes like accommodation, purchase of books, laptop and other necessary equipment.

 Medical emergencies: Gold loan can be used for urgent medical needs. A gold loan is the best financial solution anyone can get during a pandemic or other health issues. Medical loans need documents and hospital bills to grant the loan, but a gold loan only requires essential id proof like a PAN card, Aadhar card, voter ID, and gold article to sanction money.

 Weddings: For marriage celebration and reception parties, this loan can be availed within hours and minimal documents. So even if it is a last-minute requirement gold loan is present to save you. The big day needs all the attention with complete glamorous. You can even use the official website of the bank or NBFC to take out the loan.

Vacations: A time away from reality is a pre-requisite. The money availed using the gold articles is best used by refreshing yourself and treating your family to Goa or Thailand. The loan amount can cover all your expenses, including flight charges and hotel bills. They are highly convenient with incredible offers.

Conclusion

A gold loan is an advantageous loan with flexible repayment options. After availing of the loan as a borrower, you should pay your monthly instalments on time. As the loan is secured, if the lender fails to see timely payments, they have the right o auction your gold.

Read More:- Way You Want To Choose Gold loan 

They have a lot of misconceptions about gold loans and how they function. If you're in the dilemma of taking out a gold loan, read on to clarify some common misconceptions about gold loans. Individuals or applicants can use the Gold loan calculator to figure out how much interest they would pay on a gold loan they wish to take out against their gold or gold jewellery. Their gold or gold ornaments will be held as collateral or security by the lender, bank or NBFC until the loan is fully repaid.

1. Obtaining A Gold loan Is A Lengthy Process:- When it comes to gold loan myths, this is the largest one of them all. The only loan that you can receive on the spot is a gold loan. Banks and non-bank financial institutions (NBFCs) authorise gold loans and disburse loan funds within a day, if not an hour. So, if you're in desperate need of cash, a gold loan is the way to go.
   
   
2.  You Won't Be Able To Receive A Gold Loan If You Have Ancient Traditional Jewellery:- Many people believe that banks and non-bank financial institutions (NBFCs) exclusively lend money for new and recent gold jewellery. As a result, despite having many old gold ornaments, they would not ask for a gold loan. However, let us clarify this myth for you: banks do lend money on older gold jewellery. To qualify for a loan, the gold must be pure and at least 18 karat.
   
   
3. Only And Only Jewellers Can Offer The Gold Loan:- Many big banks and NBFCs now provide simple gold loans with attractive interest rates. As more people began to invest in gold, numerous banks and non-bank financial institutions (NBFCs) began to offer gold loans. Few non-bank financial institution (NBFIs) specialise in gold loans. Taking out a gold loan from a reputable bank or non-bank financial institution is always safe and secure. Those who believe that only jewellers can offer gold loans and are concerned about their authenticity might apply for a gold loan from a bank or non-bank financial institution ( NBFC). The Bank of baroda gold loan offers secure on-the-spot processing, flexible repayment options, and more.
   
   
4. Your Gold May Be Discreetly Switched:- To secure a loan against your gold, you must keep it with a bank or NBFC. The bank or NBFC will return your gold jewellery if you repay your loan within a specified time frame. Many people believe that your ornaments are replaced with fake decorations by money lenders. As a result, many choose not to take out a gold loan because they are concerned about the protection of their precious jewellery. However, this is not the case. Banks and non-bank financial institutions (NBFCs) have particular security and locker systems in place to secure your gold loan held as collateral. It will only be deleted once you have completely paid off your loan. So you may confidently hand over your gold to a bank or NBFC for a loan.
   
   
5. The Interest Rates On Gold Loans are Incredibly High:- Depending on the type of loan, banks and NBFCs offer different interest rates. If the loan is unsecured, the interest rate is high, but the interest loan is pretty small if the loan is secured. A gold loan is a sort of secured loan. As a result, banks and non-bank financial institutions (NBFCs) do not charge exceptionally high interest rates. The interest rate on gold loans may vary between 10.26% and 26%. The interest rate varies depending on the loan borrower's characteristics. A gold loan calculator can assist an applicant in calculating the approximate EMI that must be paid to repay the borrowed amount. Applicants can try out the different interest rate and repayment terms offered by top financial institutions using the Gold Loan EMI calculator.

Read More:- Gold Loan; A Short Depiction 

Availing of a car loan is the easiest the bank or NBFC provides anyone who meets the eligibility criteria. But the real action comes after availing of a loan. The bank or NBFC expects the customer to have a healthy relationship with the bank or financial institute by paying off the debt properly. The monthly instalment shouldn’t be missed any month without difficulties.
Tips to handling the car loan.

Budget planning :-
The first and foremost thing a borrower should do after availing of the loan is making budgets. Plan your spending's according to your income. A loan helps you by not denting your account primarily at once. If the borrower is careless about his/her spending and fails to pay the interest amount each month, the denting is sure to come. Cut all your unnecessary expenses and condense your unwanted spending like excessive dress shopping, outing too often, high restaurant usage are all bound to make your debt repayment highly challenging.

Down payment :-
The bank or Non-Banking Financial Institution(NBFC) grants up to 90% of the car’s ex-showroom value for new car loans and 80% of the car’s on-road price for used car loans and loans against the vehicle. Some banks and NBFCs even offer 100% of the loan amount. But that doesn’t mean you should avail the entire price of the car on loan. It is most definitely better if the loan is only at the maximum of 80% of the car’s value. Financial advisors and economists highly pressure the borrowers to make a minimum of 20% of the value as a down payment. That way, the interest amount and the principal amount are less.

Tenure or Term of the car loan :-
The period you avail of the loan for is widely referred to as the tenure of the loan. Banks and NBFCs offer up to 7 years as the maximum limit to help the loan and one year as the minimum period for the loan. Tenure of the loan affects your ability to spend largely. A longer-term gives you a low-interest rate, and a shorter tenure gives you a high interest rate. But on the whole, at the end of tenure, people who choose long loan terms pay more interest amounts than people who prefer short assignments. If the period is short, you pay the debt off soon, and the sooner you can have the interest amount for other things. So shorter tenure is better to handle the loan slickly.

Loan resurrection :-
If you are unable to pay the monthly instalment on time, banks and NBFCs offer a loan resurrection where you can change the Car Loan Interest Rate and tenure according to your capability. There are even options to transfer your loan to another bank or NBFC. A loan moratorium is another offer where you don’t have to pay the interest amount for about three months. This is offered when you are facing terrible financial troubles like unemployment or losing business, but you should have paid the past interest amounts on time.

Debt consolidation :-
Debt consolidation, both literally and figuratively, means combine and conquer. If you have n-number of loan and it is highly challenging to pay the interest amount each month. Then debt consolidation is your best choice. Here you can combine all the debts to a single loan or credit with only one principal amount and one interest rate to pay every month. This way, you don’t need to remember all your payments and have a more than necessary headache.

Conclusion :-
PNB Car Loan offers the best deals in the nation, with billion account holders and countless others availing car loans day-after-day without complications. The bank’s online website can be used to know more about its interest rates and loan offers without having to move a step. As mentioned before, availing of the loan is easy, but paying off the debt is simulating, so you should always maintain the credit score and have a healthy banking relationship with your lender.

Read More:- Why Car Loan is the best option in finance? 

A gold loan is a type of loan in which the gold is provided to the bank under whose custody it is kept safe. In return, a determined and calculated amount of loan is being sanctioned and approved in the customer’s name and is credited to his bank account. The purity of the gold in the form of the ornaments of the coin must be between 18 to 24 carats which are applicable all over the banks and the different kinds of  NBFCs.

There are different types of financial services available in the market, but if the gold is in the stock of any person, gold can also be used to get financial help. The form of the ornaments and the form of the coin can be used to avail financial help from the financial institutions on certain terms and conditions in which the person is entitled to repay in the form of EMIs.

Fast loan disbursal :

In the case of a personal loan, there is a maximum requirement of 48 hours i.e. 2 to 3 days time. In the case of your car loan, it takes about a week. In the case of a gold loan, it is very much easy. It might happen that if you have an Aadhar Card and gold with you, then there is a possibility that you will get a return with the amount of loan, and that is also within the period of 4 to 5 hours. 

One of the biggest advantages of a gold loan is that the disbursal is much faster than any other type of loan. The applications made are available in the form of the online web, which is much faster, and the documents are not mandatory to be attached or shared by post. Still, they can also be uploaded to the official website by scanning in JPG or PDF format.

No requirement of credit score :

A credit score is that type of score with a three-digit number issued by credit rating agencies. Based on this, the loan providers examine the customer’s profile to judge properly that the person is quite sound or not for providing any kind of loan. The availability of Gold Loan calculators on official websites can give a better estimation. 

It is generally counted when no collateral security or asset has been made as a backup if there is any kind of default or surrendering of the loan. These are generally used for unsecured loans. Still, in the case of a gold loan, there are no such kinds of risks because if any such things happen, then the banks of the nbfcs have full freedom to resell this particular gold auction is to recollect the amount are the leftover amount which is there.

There is no necessity for income proof :

There is always a requirement of income proof in case of unsecured loans like a personal loan, home loan and other types of loans. Which day becomes really difficult for a person who is not having any source of income or any kind of job. Many people want to have a new start in their life by availing of financial help and applying for a new start-up business, but due to these kinds of financial help options, they are unable to do so, and in those cases, the gold loan comes into the picture. 

Bank Of India Gold Loan also offers such facilities for the customers. The requirement of the salary slip, form 16, bank account statement etc. and all these kinds of things are not required, but only the proof of address, identity proof and the gold ownership documents is necessary for getting a gold loan.

No involvement of prepayment charges :

In most of the loans and the financial assistance from the Financial institutions, it has been seen that if any loan amount due if has been paid altogether before the expiry of the term, then a charge is being lifted by the bank, and that is called a prepayment or foreclosure charges. 

In the case of a gold loan in most of the bank, it is not followed, which makes it much more flexible, and the customers will also so we saved from the future following monthly interest payments which can be about as sometimes as they are also a bit high. To conclude, we can say that people mostly prefer gold loans due to these reasons.

Must Read:- Gold Loan EMI Calculator 

Personal loans are unsecured loans which mean that the borrower does not have to enlist any collateral or security with the bank or the financial institution. Several factors such as the stability of income, employment history, past debts, repayment capabilities decide the borrowers’ eligibility for a personal loan. The amount loaned can be used for any purpose, there is no restriction on its disposition, it can be used to fund medical bills, wedding expenses, funeral costs, education purposes, moving or home renovation costs, etc. Personal loans are an instalment debt that allows borrowers to procure a huge amount at once. The borrower, in return, has to repay the principal amount with an interest rate charged on it by the loan issuing bank or financial institution. Banks and financial institutions allow the borrowers to repay the loan amount through fixed monthly instalments, commonly known as equated monthly instalments (EMIs). EMI means a fixed payment that is made by the borrower to the bank or the financial institution on a monthly basis till the end of the loan tenure. The interest on the loan amount can be charged by one of two methods - the flat rate method or the floating rate method.

A borrower can make use of the Personal Loan Calculator which allows the borrowers to calculate their EMI in advance. This facility is available on the bank or financial institutions website or mobile app. The borrower can figure their monthly instalment before obtaining a loan by using this facility. The EMI of a loan is computed on the basis of the loan amount, loan tenure, and interest rate. The interest rate is decided by the bank or the financial institution and it differs from lender to lender. The borrower can use several combinations of the loan amount and loan tenure according to their financial requirements and repayment capacity to figure a loan that fits their needs. The EMI calculator feature allows the borrowers to try different combinations and plan their budget based on the monthly instalments before obtaining a loan from the bank or the financial institution.

An Alternative Option To Repay The Personal Loan To The Bank Of The Financial Institution:-

Prepayment and foreclosure - A prepayment option is an option that allows the borrower to settle their debt in advance i.e before the end of the loan tenure. This option allows the borrower to gain the advantage of the lower interest rates. However, banks and financial institutions charge a fee on prepayment and foreclosure known as the “prepayment penalty”. This fee is charged by the banks and financial institutions to recover a part of the amount lost on the interest that the borrower saves. The banks and financial institutions also impose a lock-in period on prepayment which means that borrower cannot make a prepayment until after the lock-in period is over. The prepayment fee and lock-in period differ in every bank and financial institution based on their policies on a personal loan. Making prepayments help the borrower to go debt-free faster. Paying the prepayment penalty would be considered a bargain against having to pay large amounts of interest on the loan amount. If the prepayment is made in full, the borrower goes debt free completely, if it is made in part, it reduces the EMI amount and interest rate, which saves the borrower a significant amount of money. Making a prepayment also improves the credit score of the borrower as it indicates a positive repayment capacity. The borrower must remember that they would be paying a prepayment fee and a lump sum amount to settle the loan. They should assess their financial situation and calculate the difference between the interest payments and prepayment penalty, only if they make a saving, they should make the prepayment. Indiabulls Personal Loan is one of the financial institutions that provide the facility of an online personal loan calculator.

Also Read:- A perfect personal loan 

There are various loans in the markets nowadays which can be seen to be similar but are different. One such loan is a land loan and home loan. Many people might think of these loans to be one and the same but they are different and are available for different purposes. So let us discuss the meaning of these loans. First, let us understand home loans. Home loans are available for properties that are yet to be constructed in future or under construction or for ready properties whereas land loans are taken for buying a landholding or a plot of land for building a house or for mere investment purposes. Now, as there is a lot of advancement in the market. It is implied that people are bound to get caught in the wrong steps during taking these loans as many people don’t know all the details regarding these loans. Different loans involve different requirements and many people get confused in minute details involved in them.

The differences between the two are discussed on the various basis as below:

• Location of property and purpose: Home loans are available for ready properties or property under construction or yet to be constructed whereas land loans are available for the purpose of purchase of a plot of land, investment purposes or the land will be used solely for residential purposes.
  
  
• Tenure of the loan: There is a major difference in the tenure of both types of loans. Home loans are available for a period of a maximum of 30 years whereas land loans are available for a maximum period of 15 years. So, this is a major difference between both these types of loans. And this can be easier with the Home Loan emi calculator which is provided by most of the banks to calculate their monthly installments so that they can accordingly check their monthly limit to pay.
  
  
• Tax benefits: If you avail of a home loan you can benefit from the tax deductions on both, the principal repayment as well as payment of interest. On the other hand, land loans are not eligible for any form of tax benefits or any kind of deductions but if you construct a plot on that land then surely there are tax deductions but that is only for the loan amount taken against construction. In addition, one should also know that these loans are only availed after the construction process is complete.

These are some of the differences between home loans and land loans along with their meanings. Now, it must be clear to you that even if they seem to be similar they are totally different and are available for completely different purposes. And most people go for availing of home loans.

Now, if we talk about home loans, there are various banks and lenders that offer a variety of schemes when it concerns taking home loans. But one should be sure of the fact that they take it from the bank that offers that home loan on correct terms and conditions and are trustworthy, that they don’t look for only their monetary benefits. One of the banks that is known for its years of service in this line and is quite trusted with is Allahabad bank home loan. They offer home loans with easy terms and a rate of interest as low as 8.25% and onwards. You can also calculate your monthly installments through the EMI calculator. They keep their processing fees quite transparent. They require basic documents for the verification of the loan such as identity proof, income status, residency proof, passport size photographs etc. One should make sure that they carry the original as well as well photocopied documents so that the document verification process goes smoothly. And if all the processes go fine, you can easily get your loan approved within a short period of time without much hassle and stress.

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When a person hits bottom on the financial position and has emergency needs that have to be fulfilled, they can take loans for these people in such a situation. A loan is a type of credit that is given to the individual in the form of money. They are obliged to pay them at the end of their tenure, and this payment is made every month called the EMI.A gold loan is a kind of loan that is usually a guaranteed loan when it comes to making a guaranteed loan with gold. It should be 18-24 carats for collateral or gold; the amount given from the gold loan depends on the gold weight. In general, the current market receives money 80 per cent of gold's cost.

Who can apply for a gold loan?

If you have gold, you may obtain a gold loan. Gold loans can be used by any indigenous resident, including salaried professionals, business people, homemakers, and even farmers, instead of personal loans that include stringent eligibility criteria. To qualify for a gold loan, you don't even need a good credit value. So when you have low credit, you still have a chance to get money if you've got enough gold to Pledge. The different kinds of an emergency can be educational, family-related, personal-related, and social-related as well.

We have a different type of emergency many times when we cannot meet any sudden expenses. For example- During the rainy season, one may experience electrical problems. The cables can get wet, or a short circuit can happen. The house’s cable circulation may have been damaged as a result of a shock near the kitchen. Any kind of fire accident can occur if not treated properly. The best option in this particular situation is to finance this and fulfil specific small requirements. For such a purpose, if one doesn’t have money to pay the bills, they can take gold loans. When you take a Bank of India Gold Loan Per Gram, it is the same throughout India.

Why people use the gold loan?

1) Faster handling- Because gold lending is backed by physical gold; bankers are happier to lend in general. The banks can sell the gold if they do not accept gold lending, so banks usually pay out the loan after few hours because the time for treatment is lower.

2) Option for payment of interest only– Gold loans have a unique feature in which the borrower can only pay the interest and principal amount at the time of loan closure.

3) Lower interest rate– Because these loans are secured, banks charge a lower interest rate than unsecured loans like personal loans. Typically, interest rates range from 13 to 14%, while personal loans usually start at a 15% interest rate. Furthermore, the gold loan interest rate can be reduced further if another security is attached as collateral.

4) No fees for treatment– Many NBFCs and banks do not charge the treatment fees because these loans are instantly given instead of gold held to the creditor as Collateral. Gold Rate In Bangalore is R.s 4225.

5) Low charge or no charge for foreclosure- Some lenders charge no prepaid fees, while some banks charge a 1 per cent advance payment penalty.

6) Required no income evidence– Lenders generally do not request proof of income, as the loan is guaranteed against the bank's gold.

7) Bad credit history, not an issue– Unlike other loans where the loan amount is given depending on the repayment capability and credit history, the case is different in a gold loan. Because gold is used as collateral, the lenders are not concerned about the main component and thus do not monitor the borrower’s credit history.

8) Safety of gold– The lender is responsible for the safety of the gold. It will remain safe in its vault, and you don’t have to worry about that. After paying the amount back, you will receive the gold back.

Also Read:- When you need to avail gold loan 

One can get a loan from the nearest branch of any bank. For more bank branch details one can visit the online website of the bank. Getting a loan is a big deal. One should be well researched before applying for a loan. Banks and non- banking financing companies have their own different eligibility process. Getting a loan from a bank can be very time consuming sometimes. It requires a proper documentation process. 

One can calculate the loan availed from the bank through a Loan Calculator. Banks and non-banking financing companies have helped thousands of people in financial difficult times by providing them loans. Various sectors have been benefited during financial difficult times by availing loans such as primary sector, secondary sector and  tertiary sector. It has also helped in the growth of Indian nation. People all over India trust and believe in its banking sector. It is one of the most trusted sectors of our country.

Many times people might face difficulties in availing loans. There can be various reasons why one’s loan is being rejected. 

Some of the most common reason due to which loans get rejected are:- 

1) Bad credit history:- One of the main reasons for rejection of loan can be borrowers' bad credit history. For availing loans one must have a good credit score and history. Many banks and non-banking financing companies(NBFCs) do not approve loans of the borrower with bad credit history and score. One must look after the credit score and history before applying for a loan. As there is a probability of rejection of the loan application when a borrower has bad credit history and score. 

2) Insufficient Income:- This is another major reason for rejection of the loan application. Many lenders at banks and financing companies look at the work, investment, and other income before they approve your loan. Lender needs to ensure that you can repay the loan back. One with insufficient income might face difficulties in availing loan. One should check the income before applying for the loan. 

3) Lack of collateral:- When applying for loans such as gold loan, business loan the lender looks at the collateral. Without collateral, lenders may find it difficult to approve your loan. One can provide personal assets as collateral. Collateral by the lender is taken for the security purposes and is returned after the successful payment of the loan. One must provide collateral for fast approval of the loan.

4) Over-borrowing:- If the borrower has taken too many loans together then financing companies and banks may not give you fast approval of the loan. As they may consider you a risky candidate. One must not take too many loans all together. While applying for the loan one must have a clean history. 

People might find difficulties in approval of the loan many times. One must keep a clean record with a good credit score and history for fast approval of the loan. One needs to be aware of the bank branch details required. Many financial companies and banks do a research analysis of the profile of the borrower before lending them the money. One with a good history of repayment of the loan can be provided fast approval of the loan. There are various private and public banks which provide loans to the people all over the country living in rural as well as urban areas. One can use the loan amount for several purposes during difficult times. Many people make several mistakes while applying for a loan one should avoid those mistakes for the fast approval of the loan. One can consider this article before applying for a loan as the common mistakes which people make while applying for a loan are mentioned above.

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