Blog #Gold Loan

The market of gold loans surged considerably after the spread of covid-19 in India. People who faced a shortage of money took gold loans for a short interval of time. So when people do not have enough funds but possess gold, they can take a gold loan. A gold loan should be taken for immediate requirements and a short period. 

Outbreaks of covid have impacted the financial growth as well as individuals. Many suffered from job loss and failure in business income. When a family faces misfortune, especially a financial one, then to meet the crisis, people can take salary overdraft, payday loans, loans against FD, covid loan, mutual fund loan, or a personal loan of any type. But one of the prominent loan options is a Gold Loan as it can be used as a last resort.

There are a few emergency funding options like credit cards and loans against gold, which can help short-term needs. However, many people do not have access to credit cards, so a gold loan is considered the next best alternative. Further, it becomes accessible for people without getting formal credit. Therefore, banks and NBFCs prefer giving gold loans primarily to those borrowers who cannot access formal credit within a period. Moreover, individuals with whom formal credit is not available for personal and business needs are also provided with gold loans. The banks provide gold loans at the interest rate ranging from 12 to 16%, whereas NBFCs provide gold loans from 14%, extending to 26%. 

Many people face another problem that is having a poor credit score. And this leads to the denial of personal loans from most banks. A gold loan is a better option for people with not an excellent credit history or credit score. Most gold loan companies and banks provide a gold loan offense if a person has a bad credit history, but a sound repayment track on the gold loan can improve the credit score. In a gold loan, gold serves as a security and has a good value attached to it, which increases the propensity of repayment by the borrower. So doing prompt payment of monthly gold loan EMIs can boost the credit score and creditworthiness of the borrower.

Additionally, a gold loan comes with maximum flexibility regarding how the borrower wants to repay the loan amount. Loan repayment can be done in various ways like equated monthly installment, paying interest per month, part payment of the loan, etc. The maximum repayment period for a gold loan extends to 1 year or more depending upon the lending institution. 

Gold is a valuable asset and helps individuals get simple access to credit. Still, the short repayment period of gold loans can be challenging as repayment must be done to reduce the financial liability. So the amount borrowed as a gold loan must be for urgent purposes only. The borrower must have enough provision to repay the loan so that he may not lose his gold asset. Lenders find it easy to liquidate the gold assets, and auctioning the pledged gold is the last resort for the lenders.

Most of the lending institutions serve three notices after the borrower makes default in the gold loan payment. The first notice is sent when the due date of payment has already passed. The second notice is sent after six months of default, and the third or last one is sent to the borrower after one year of default. Therefore, choosing the right lender for a gold loan is essential to save the gold from getting auctioned. 

The non-banking financial companies solely focus on assets regarding gold loans—the faster processing of gold loans and better customer experience. On the other hand, banks have gained greater public trust as custodian of wealth in gold loans. The higher loan per gram amount, minimum processing time taken, higher security, and recovery process are the strengths of Banks in Gold Loan. But if an individual is in urgent need of funds and is ready to pay a comparatively higher rate of interest, like in Muthoot gold loan rate, then an NBFC is ideal for him.

Also Read:- What Are Digital Gold Investments 

Gold advances are to be sure the most sensible and clear advances to get yet, individuals' opinion about is how the advance whole is picked in Gold Loan. Given that this specific advance expects you to give an assurance, the advance entirety is picked subject to that. The bank or money related foundation picks their standards of the gold to be regarded anyway a standard technique for doing it is choosing the number of carats worth the gold is, checking it, and a short time later sorting out what the assessment of the gold is following the assessment of that gold in the market around at that point. 

An engraving or statement of ideals is in like manner saw as crucial and significant while choosing the assessment of the said importance. In like manner, the assessment of the gold isn't given as a credit. Overall, can depend upon the bank or money-related association's rule of the assessment of the gold. The charge is then decided on that 80% (assessed) of the assessment of the protection. One can use this basic formula to figure and measure the gold credit revenue they would be expected to deal with to the moneylender. They would need to deduct the central entirety from the total whole to be paid - that is it more or less. The total entirety one would have to pay before the completion of residency can be dictated by using an EMI gold credit adding machine.    

The HDB has furnished its clients with an extraordinary thing, HDB, a gold credit intends to help borrowers during money-related emergencies. This credit considers borrowers from the non-agribusiness establishment who wish to benefit rapidly from a money-related advance against their gold. Given the way that most Indian families have gold endeavors, this is ideal to oblige any speedy financial essentials. Under the HDB plot, there are two kinds of sub-plans. One is HDB EMI and the other is HDB Non-EMI plot. One can without much of a stretch check the HDB Gold Loan financing costs of the particular advance they are considering deciding on. As a borrower, evaluating the ideal measure of EMI is a component of your credit essential, your month-to-month pay, repayment limit similarly as the proportion of consistently planned installments you can go through to the pay-out from your month-to-month payments. 

As a guide, follow the underneath steps to check the EMI entirety that is fitting for you- 

1) Pick the total you need to procure:

It is critical that before pushing toward a bank for an advance, you need to evaluate the proportion of credit you need to get. Remember, individual credit is a precarious advance that can come at high-financing expenses, and in this way, it is reasonable to confine your advance amount to the base required. In like manner, due to the EMI, you can uphold, endeavor to choose the most diminished residency of credits as long residency advances to achieve enormous interest outgo.     

2) Review your current responsibilities:

Before taking an advance, it is fitting to evaluate your current month-to-month costs including any EMI responsibilities that you have on your current credit accounts.  At the point when you appear at the EMI, you can uphold, you can in like manner pick the right credit residency. The bank required an uncommonly little handling charge which will depend upon the advance whole. All of these necessities changes from one bank to another or money-related foundation. Notwithstanding, even with these charges, great advances stay the least expensive advances to benefit every individual who figures out how to meet the necessities.  

Read More:- MUTHOOT FINANCE GIVING GOLD LOANS AT HOME AMIDST PANDEMIC 

Each loan has particular conditions that require it to be fulfilled to get the loan. Most loans have similar kinds of conditions that need to be fulfilled despite a few of the characteristics such as the loan amount, LTV ratio, tenure of the loan, etc. That depends on the category of loan one avails.

Nearly every bank and lender in every category of loan expects the borrower to present their papers. Apart from that, the borrower should also have a good credit score, but there appears to be one exception in gold loans. A Gold Loan is a type of loan that does not need the borrower to submit a good credit score before banks and lenders. Yet, It is vital to have a good credit score when applying for any other type of loan. Still, in the case of a gold loan, it does not hold any significance because they are short term secured loans supported by collateral or security, which simply means that you ought to deposit your gold to get the funds for the loan for which you guarantee your gold. Usually, people opt for gold loans to enhance their credit score as they are short term. Moreover, with a low rate of interest, they are simple to pay back. Therefore, a minor mistake in credit score can be enclosed in gold loans as collateral is the central aspect contemplated there.

Therefore, banks and lenders don’t ask for good credit scores as it does not hold that much importance compared to the credit score requirements in different categories of loans.

Now, there exist several other characteristics which have to be kept in mind while referring to Gold Loans, such as :-

Value of gold :- This is an essential characteristic in obtaining gold loans as you can get the amount of loan relying on the gold that you pledge as the banks and lenders examine the value of the gold that you deposit along with certain other documents then permit you a loan of the amount against the gold that the borrower has deposited. Moreover, it is valuable to know that banks only lend you up to 90% of the value of gold that you have promised, and the prices of gold prevailing at that period are evaluated. So, one should remember these things to distinguish the prices of gold before going to get a gold loan.

Interest rates :- Gold loans are relatively simple and beneficial types of loan which have a highly adjustable rate of interest that can vary between 9%-27% and can be fixed depending on the borrower and their respective lender or bank. You can also evaluate your monthly instalments before selecting the rate of interest. Accordingly, after looking at the monthly instalments according to your loan amount, you can select a rate of interest for your monthly instalments. You can also check the SBI Gold Loan Per Gram to get to know the various offers you can get and the flexibility available to you when you apply for a gold loan.

These are a few of the characteristics that come in handy when you go for availing of a gold loan, as these are the essential characteristics that need to be evaluated. You can even apply for a gold loan simply by sitting at your place without visiting a bank branch by just checking the bank’s online website and filling the application form. You do not need to visit the bank branches to get each and every process approved from the banks. This makes the gold loan process very easy and convenient.

Also Read:- Everything About Your Online Gold Loan Application 

Home is where comfort lies! Everyone agrees with this, and comfort does not necessarily mean comfortable sitting and chairs; it refers to the relaxed mindset you have when you enter your home, and that only comes when you are at peace within your mind and heart. Now, that peace can be attained by anyone, not necessarily by people with luxuries at their place but by anyone with a clean house and everything correctly set up. There should be no leakages, ceilings, wire problems at your place as that can be both disturbing and risky.

So, to have a proper home, one should take care of such casualties and deal with them from time to time. Home improvement steps can do this. Home improvement is as vital as keeping our bodies fit is, but then home improvement is a giant expense that can dig big holes in our pockets and bank accounts; people avoid spending on this necessary expense due to the reason that it involves huge costs and most of the people cannot afford such giant expenses and ignore this till this expense can be delayed. Still, one should not ignore it as prevention is better than cure. So here is an easy solution for your budget problem, you can avail a gold loan for your home improvement.

The Gold Loan can be very beneficial for your home improvement expenses as a gold loan can come in handy whenever you require it; it does not require many formalities, and you can get a gold loan within a few minutes. The gold loan comes with a lot of benefits; let us discuss some of these benefits as below:

• Gold loans have a flexible tenure which can range between 3 months to 3 years; that is, you can always choose a tenure of your own choice which gives you an upper hand, it is a secured loan that does not make you borrow money from anyone as you can choose a flexible tenure period as per your convenience.
• Gold loans come with a variety of rate of interest that is very flexible, the rates of interest can range from 6%-17%, so one can choose the most convenient rate of interest after considering the condition of their pocket, and if you tend to have good relations with the bank or lender you can get an added advantage of that too, you might even come across some attractive schemes which might give you more added advantages, but these rate of interest depend on several factors such as the tenure, the amount of you loan etc.
• Gold loans have no processing charges in most cases; either some of the banks charge a fixed percentage on the whole amount of the gold loan, or others may charge a fixed percentage such as 1%-2% of the processing charges.
• Gold loans don’t have any rigid criteria for eligibility for the age factor; it can be a minimum of 18 years and a maximum of 65 years and can vary a little up and down depending on different banks and money lenders.
• Gold loans don’t make you crazy with documentation requirements; they are straightforward; However, in the process of document verification, they only ask for a few essential documents that can be easily arranged.

Many banks offer gold loans, and with gold loans, there is an added advantage that you do not have to use the loan amount for a specific purpose; there are many benefits of the gold loan if taken with the proper steps from the right organization.

SBI Gold Loan is provided by the SBI Bank that is trusted with its services of providing gold loans as they offer gold loans on easy terms and conditions. They offer flexible tenure and a manageable rate of interest on gold loans. They require minimal documents for approval of the loan such as identity proof, residency proof, income proof and some additional documents such as passport size photographs etc. one should carry these documents after verification and carry both the originals as well as the photocopied documents so that there is no delay in the evaluation of the documents.
 

Also Read:- Gold loan for Home renovation 

When there are ups and downs and the risk of losses are seen and the chances of its happening are understood before time in hand there in there will be the best option to invest in the gold and keeping it till the time the market bounces back again where uh uh loan to value ratio will be much higher than that low period.

GOLD IS IMPORTANT AS:- 

• There are different types of things available that can be placed in the form of collateral security but gold is the most preferred metal which is kept as an asset. The importance of gold can be understood from this point of view only that there might be a fluctuation daily in the price of the gold in the local as well as an international market but the fluctuations are not too extreme. For example, if today the price of gold is Rs 49,500 while tomorrow if it increases there will be a tendency of getting a maximum of three to four thousand like rupees Rs 53,000 for Rs 52,000. In the same way, if the price is dropping then also the same concept will be seen.

• Now we can come across the most important factor that is the rate of interest of the gold loan which prevails. There is always a question as to why the rate of interest of the gold loan is so low as compared to all the other types of loans. Axis Bank Gold Loan provide such facilities in order to help them. There is a catch for the flexibility of the gold to retain its price or one can say that it is successful in holding its value along with the increasing and taking the time of the clock and the calendar. during the time of inflation when the prices of all the goods and services produced within the domestic territory of the country keep on rising and the common people lose the purchasing power. During this period investing in gold with the view that after the repairing of the crisis wave will be a good option to finance a purpose that needs some lump sum amount of money. 

• The other important thing which can be termed as a factor is the time consumption for availing this type of loan. If anyone is going to avail of a gold loan one might see that there are no long queues or waiting times in case of the other types of loans. Some reasons behind it can support the justification. The only process of valuation of the gold jewellery and the scrutinizing of just two to three documents of the customer is the only thing which is supposed to be done by the bank officials. On the contrary of the fact, there is the chance of getting off favourable conditions even if an individual approaches the financial institution within 10 to 12 hours.

• Now if we come and discuss the documentation process of a Gold Loan we will be finding that there is no complexity present in the process and only a few simple documents will be required just to verify the candidate and the gold which he or she will be submitting to the bank. The proof of address proof of Identity documents showing the ownership of the gold and some passport size photographs is all that is needed in the attested format by their signature. There is no requirement of showing any kind of income proof or for employers verification or any kind of inspection which takes another step due to which the time consumption increase is in case of the other types of the loans

There is no requirement of any type of credit score as a credit score is a score that has all three-digit numbers and States how the loan previously away has been performed to the way of payment. These are generally done in case of the unsecured loans where there is a requirement of the basic primary source of payment that is the income and the trend of paying which has been done in the past will give an idea to the loan provider that will it was providing the loan amount to that particular person who is paying properly or not.

Must Read:- What The hallmarking Of Gold Means For you 

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 

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 

What is a gold loan?

Gold loan is often called a secured loan, it is always at a lower interest rate than the other loan options, because of lower interest rate, the repayment amount is low, therefore there’s a less burden on the borrower. This is the reason why people choose a gold loan over others. Based on the current market value and the current market value and the quality of gold, the gold amount offered in a proportion of gold, usually up to 80%. Gold loans are short-term loans that might last anywhere between a month to a few years to repay. This form of loan may be a smart alternative if you need money for an immediate need and expect to be able to repay it within a short period of time. 

Why choose a gold loan ?

Gold loans provide a lot of advantages such as a lower interest rate. Having lower interest rates than personal loans as they're a relatively low-risk loan for lenders because they are using your gold as security, these process quickly and don't need any proof. Gold loans can be a smart option for consumers who are looking for a loan for a short term , and it also brings the gold to use because keeping it in a bank is better than keeping it in the houses. 

When compared to other loans, gold loans can be granted faster Because the gold is used as a collateral, banks are already at a lower risk of losing money in the event of a loss. As a result, banks are more likely than personal loans to approve your loan quickly, making it a great option during times of need. Manappuram Gold Loan helps the customer to lower the risk of loss by providing some of the policies like: 

How might a gold loan help you lower your risk of losing money? 

Reloading- The number of times the same piece of jewelry, gold coins, or bars can be pledged is limitless. This permits clients to take out multiple loans on the same asset. In contrast to personal loans, which are dispersed based on the customer's ability to repay the loan, gold loans have this feature.

Bullet Payments- The most significant benefit of a gold loan is the ability to pay the loan principal and interest in one lump sum rather than the more common method of repaying other types of loans—equated repayments, or EMIs. This provides with a lot of options or ways to repay which takes the burden off the borrower, thus making it easy and thus loss free. This feature encourages small-business owners and traders who are suffering a severe economic shortage to take out gold loans rather than alternative loan options with monthly EMIs that begin the month after the loan is approved. 

As we've seen, gold companies are effectively securitizing their receivables in the form of short-term gold loans in order to generate liquidity. Securitization is a viable method for generating liquidity in small doses, but it has apparent risks when it becomes the primary source of capital for expansion, Thus decreasing the risk of losing money.

Conclusion- 

Gold loans being one of the most secured loans available with low Gold Loan Interest Rates, reduces the risk of loss for both the lender and the borrower, being in Indian household shows how important gold is for the people so the gold rates generally don’t fall therefore minimizing the risk of losing money.

Also read this: Gold advance is like instant help 

Unlike other loan types like personal loans, education loans, or car loans, gold loans have no complexities. Gold loans are availed as per the choices of the customers to meet the needs of on an urgent basis if there is an opportunity for growth like to develop a shop or a small scale company then the Gold Loan will be the option where a person is not required to sell up, but will have to pay back based on installments.

Thus one will get back the gold in the original form which was kept as a pledge against the bank. It will be easier for the person as the income will generate from the business and the earnings from the business can become the source for paying the equated monthly installments. It will be the initial time which will have a burden of setting and establishing the business and the rest will be easier as with the increasing time being the business will rise and will provide more earning which will be a good sign for everything. If one is having any kind of requirement but thinking a lot and getting stuck due to some confusion. Then you have approached the right place.

One can take the advantage of the option of paying through bullet payment in which the interest along with the principal is paid at the last together. This type of loan is generally done for a short-term loan like for six to twelve months. Allahabad Bank Gold Loan offers a good option like this. A limitation of this gold loan is that it is not appreciable for big loan amounts as the interest keeps on adding and will become higher month by month and thus results in adding and paying high interest. For instance, if the mother is admitting her daughter to a dance academy which is an offered course but there was a shortfall of funds which is a matter of 3 to 4 months, the wait of which will make them miss the chance.

There is flexibility in the repayment of the dues in the case of the gold loan. Different types of peoples have different income capacity due to which the payment schedule should not be the same but should be according to their choices and situations. Nowadays, most probably All The Financial institutions are trying to retain their customers and attract new customers. Due to this increase competition among the loan providers, customers have got a wide range of variety when different types of flexible repayment methods like paying the interest during the initial time and principal, at last, bullet repayment options and other types of EMI facilities are also there.

The paying of monthly interest-only is another way of repayment where a person will be required to pay the interest only on a regular monthly basis and the original principal amount will be paid in one spot at last. Interest for the high principle is still to be paid at the last go which creates a burden to repay after the interest is paid. On the other side of the coin there, the borrower might have to pay more interest as per the terms and conditions of the loan provider company or the financial institution.

The regular well-known form of repayment method is also a good idea. Some banks offer overdraft facilities on the gold kept with them. Interest is paid on such arrangements. The amount is there to be paid. It should be done immediately as it will reduce the principal and thus the interest also will reduce on the reducing balance. One must have tried for getting an educational loan for a particular study but due to the tough criteria could not do so whatever the reason is the best way to avail gold loan, reasons need to be checked.

Conclusion :-
In conclusion, one can take a gold loan in many ways like on the view of seeing the requirement which he would have seen while going for a personal loan.
Also read this: Gold Loan and it's Numerous Uses 

Method of obtaining Gold Loan - The process of applying for a gold loan is quite simple. The applicant must be of 18-70 years of age. The Gold loan can be acquired by anyone who suffices.

Gold loan eligibility and possesses more than 18 carats of gold. No occupation barrier is there for acquiring gold loans. No credit score for CIBIL score is required for this loan. However, one can improve his/her Credit score by this loan. This loan can be acquired for agricultural processes or travel purposes, wedding purposes or higher education, etc. There is no restriction on the utilization of the loan amount.

 Application process This procedure can be done in two modes—online and offline mode.

1. ONLINE MODE- the applicant can complete the procedure from HDFC bank's official website or app.
2. OFFLINE MODE- the applicant has to visit the bank for completing the application procedure.

The rest of the procedure is the same where the applicant has to visit the bank for document verification and gold's purity test. 

Documentation - There is a lot of paperwork and lengthy documents to be submitted for availing loans. This is not the same for Gold loans. Here only KYC documents are necessary. The verification is done for checking the applicant's background. Identity proof and Address proof, along with 2 passport-sized photographs, are mandatory. For identity proof, one can submit anyone from this- Aadhar card, Driving license, Voter Id, PAN card. For Address proof, one can submit anyone from this- Passport, Aadhar card, Ration card, utility bills, or rental agreement for renters. No other documents than this are not required. When applying for Agricultural purposes, one has to submit proof of agricultural land. 

Purity test of Gold -The gold which has to be kept as a mortgage has to be evaluated. The evaluation is done for checking the impurities present in the gold and its weight and composition. This is called Gold's purity test. Bank representatives conduct the purity test. 

Loan Approval - Once you have completed the application process, document verification, gold purity test, and met the eligibility criteria, your loan gets approved. After approval, a sanction letter is issued to the applicant. A sanction letter contains bank details, loan amount, interest rates, prepayment options, foreclosure charges, loan tenure, repayment options, gold rate per gram, etc. After depositing the Gold in the bank, it is safely kept in bank lockers. 

Safety of gold - When you deposit the gold in a bank, it is kept in lockers. The lockers are present inside the Bank's vault. The gold is kept in bags and marked by the application as no present in your sanction letter. The lockers are guarded and kept under surveillance. The lockers hold durability from external conditions. The lockers have specific keys for all the lockers. The keys own the bank representative. Nobody is allowed to enter the Locker room except bank representatives. 

Repayment The following three alternatives are open for refinancing your HDFC Gold Loan advance.

1. Standing Instruction (SI): If you have a current account with HDFC Bank, an amount indicated by you will be deducted towards the end of the month.
2. Electronic Clearing Service (ECS): This option is for those who don't have an account in HDFC bank; here, the amount indicated by you will be deducted from the account of other banks shown by you towards the end of the month.
3. Post-Dated Checks (PDC): The PDC can be submitted to your nearest branch of HDFC Bank towards month-end.

Benefits

1. The interest rates are only 9.90% per annum which is very less in comparison with other loans.
2. The processing fee charged is only 1.50% of the Principal Loan Amount.
3. No foreclosure charges after 3 months.
4. The loan can be approved up to Rs 1 Crore.
5. Loan tenure is between 3 to 24 months.
6. The gold loan can be obtained in just one visit.
    Also read this: Some Essential Features of a Gold Loan 

Nowadays, a person can easily get a gold loan online by following some simple steps. But it becomes very important that one should have a sound knowledge of how to go about getting these loans. So let us discuss some of the important points on how to choose the right gold loan for you.

Getting a Gold Loan is not really a process involving a lot of hassle or stress; if everything is done precisely, one should do all the steps carefully and check all the criteria twice before getting to a bank to avail of a gold loan. Certain formalities need to be taken care of before getting any type of loan. This completion of formalities may take up a lot of time. Still, as in the case of gold loans, they are easy to avail, so the process can be completed pretty quickly if the requirements are catered to correctly.

First, let us talk about the right eligibility to apply for a gold loan. One should apply for a gold loan only if he can fulfil the eligibility criteria. Otherwise, he may not be sanctioned for the loan, so a person should be self-employed, salaried, professional, businessman, farmer, trader etc. so that he can avail a gold loan, then, he should be able to meet the age criteria that is, the age limit for availing a gold loan should be between 21 to 60 years of age.

What documents should one carry for applying for a gold loan? For applying for a loan, banks and money lenders ask for a lot of documents, but minimal documentation is required in the case of a gold loan. Some of the documents required are stated as below: One should carry their identity proof, which involves PAN card, Aadhar card, and then, current address proof is also very important such as, aadhar card, postpaid bill, landline bill, water bill, electricity bill, address updated in bank statement/ bank passbook, driving license, voter ID, passport, rent agreement, gas bond paper with the latest receipt, credit card statement etc.

What is the tenure for gold loans? As tenure plays a major role in deciding whether one is in the state to apply for a gold loan or not, one should keep this in mind. The tenure for a gold loan is six months, and it can be renewed for another six months without any extra renewal charges. Since the tenure on a gold loan is very short, one should make sure before availing the loan that he will be able to repay it within the stipulated time; otherwise, the gold pledged can be taken if one fails to repay their loan within time. 

Another important thing that you need to know is how long it takes to get your gold loan sanctioned? So, as you may know till now that getting a gold loan is quite easy and simple and if you have all the necessary documents and you are able to meet the lender’s criteria, then getting a loan will no longer be a timely procedure; you can even get a gold loan in one day.

One of the easiest ways to avail of a gold loan with minimal documentation and transparent charges can be through the HDFC Gold Loan. HDFC provides a quick and easy solution to get a gold loan. HDFC bank gold loan comes with a variety of interest rates on term loan, overdraft, EMI based loan etc. One can easily repay them on their own terms of tenure as they provide flexible tenure ranging from 3 months to 24 months. They require minimal documents such as passport, driving license, voter’s ID card, aadhar card issued by UIDAI, PAN card or form 60, a passport size photograph, Agri allied occupation documentation etc. If you are able to present a few documents correctly to the bank, you will surely be sanctioned for the loan in no time.

Also read this: What is the Top-Up Gold Loans Scheme