Blog #Bank Of India Gold Loan

A gold loan can be applied for by anyone over the age of18, and it only requires minimal paperwork to be approved. Furthermore, the documents provided are ones that almost everyone can provide–proof of age, identity, and address. A gold loan can usually be used to finance any company or personal use, including travel, medical emergencies, car repairs, education, weddings, events, home repairs, working capital, and business expansion.

When opening this account, be sure to have the following documents on hand-

Latest address proof and signature proof (only if the customer's address as changed in the bank records varies from the address specified in this application). If the yearly income exceeds Rs. 5 lakhs, a PAN is need by regulatory instruction.. Identity proof, address proof, signature proof (KYC documents), and two passport-sized photographs are all needed. If a customer takes out a gold loan worth more than Rs 25 lakh, documentation is needed. 

Concerning the interest rates, fines, and charges The interest rate on gold loans, like any other loan, varies depending on the duration of the loan and the amount lent. The following is a comprehensive list of fees that must be charged. Concerning your EMIs and the various repayment options available to you, You must ensure that you understand the facts and figures before applying for a gold loan, including the interest rate, the principal, and the monthly EMI. If you're not sure about any of these, you can use the gold loan EMI calculator to figure out how much you'll have to pay per month.

The best thing about applying for gold loans is how easy the procedure is.The basic steps are as follows:-

1) Fill out an application for a gold loan and submit all necessary documents

2) Get your gold reserves checked and confirmed at one of our select branches to get an instant gold loan approval. Within 4 hours, the loan amount is credited to your account.

3) The gold loan apply online from a bank in India with interest rates ranging between 7.5 percent p.a and 29 percent p.a. In the case of a financial emergency, you will oath your gold ornaments and jewelry for donations.

Features of Gold Loan Purpose: A gold loan may be used to fund a variety of needs, including educational expenses, medical emergencies, vacations, and so on.

Protection: The gold that has been pledged with the bank or financial institution serves as security or collateral for the loan sum.

Tenure options: Tenure options will vary from three months to 36 months. Other fees that can apply to a gold loan include processing fees, late payment charges/penalties for not paying interest, valuation fees, and so on. Nowadays, you can apply for a gold loan through the Bank's or mobile application or official website. However, sue for a gold loan online does not remove the need to visit your lender. 

You should visit your lender at least once to deposit your gold articles to apply the online gold loan facility. After that, you can generate an account on the lender's customer portal or mobile app and connect your bank account to it. So, if you want money miserably in the future, you can register  for a gold loan and have the accessible credit expand in your bank account in just a few minutes, no matter where you are. Farmers can take advantage of the Bank Of India gold loan facility. 

Agriculturists may use the loan program to meet their farm and non-farm financial needs. For good reason, gold loans are one of the most popular types of loans in the country. A gold loan can be applied for by anyone over the age of18, and it only requires minimal documentation to be approved. Furthermore, the documents required are ones that almost everyone can provide–proof of age, identification, and address.

Must Read:- Gold Loan; A Short Depiction 

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

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

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

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

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

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

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

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? 

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 

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