Gold loan for unemployed

17 May

A gold loan for an unemployed person is a piece of cake these days. India and Finance have progressed so much that even an unemployed man can get a gold loan quickly. You may think that it’s a lot of paperwork, and you’ll have to make a lot of rounds to the bank, but those are just rumours. Getting a gold loan is so much easier and quicker than it was before. You’ll just have to take minimal required documents, get it confirmed by the bank, and voila! You’ll get your gold loan approved at an attractive interest rate just like that.

There are even a lot of government schemes for the unemployed:-

Prime Minister Rozgar Yojana:- It provides self-employed opportunities to educated youth along with that it also allows you to get loans up to 10 lakhs. This scheme was launched in 1993 and is targeted at women and youth.

Agriculture Loan:- This is a scheme targeted to unemployed youth engaged in agriculture. With the help of this scheme, you can get a loan of up to 1 lakh without any security.

Loan subsidy scheme:- This scheme is not available across all states; still, the Tamil Nadu government under NEEDS (New Entrepreneur and Enterprise Development Scheme) provides a 25% subsidy for any loan taken by an unemployed person.

Cash loans:- Under this state-funded initiative, an unemployed person can apply for a loan up to INR 50000. The age criteria for this scheme is the 18-45 age group. This scheme is similar to NEEDS, but this scheme is under the government of West Bengal.

Getting a gold loan can also be an advantage for an unemployed person. Gold rate today is not that high as compared to the past offerings by lenders. Most gold loans don’t have any documentation process; you can just walk in your nearest branch and get your gold loan approved in a minute or two. Gold loans usually have lower interest rates compared to other credit loans, so it also helps in reducing your monthly outflow.

Some banks give special offers to their existing customers; they provide offers like easy repayment options, attractive interest rates, and instant liquidity. For example:- IndusInd Bank gold loan gives an additional discount to women borrowers and agricultural professionals for a loan up to 10 lakhs.

Interest rates:- Usually, the interest rate is higher than 8%, but you can get it for as low as 6%.

Things to keep in mind before going for a gold loan:-

The Lender:- Choose your Lender carefully, It is usually advisable to choose a public or a private bank, but you can even go for Non-Banking Financial Companies (NBFC) so that your gold remains safe with them.

Rate of Interest (ROI):- There are a lot of banks and different banks that provide gold loans at different rates of interest. So it is always advisable to do your research and go for a bank with less rate of interest. So at the time of repayment, it won’t cause many difficulties.

Loan Amount:- As there are plenty of banks/lenders in the sea, but no one gives you 100% of your gold value amount. So choose your Lender carefully and do your research before choosing the Lender. You can compare the prices and the rate of interest to choose your perfect Lender.

Tenure:- The gold loan tenure is usually short; some provide it for 8-24 months and some for 12-48 months. So check if you are capable of repaying the amount with the rate of interest for the particular time you go for.

Repayment method:- As earlier mentioned, some banks give offers like easy repayment options to their existing customers. Some let you pay the principal amount at the end of the tenure and allow you to pay the interest during the time. At the same time, some let you pay annually, quarterly and semi-yearly.