Blog #Gold Loan EMI Calculator

A Gold loan is one of the easiest loans to apply as compared to the other loans. The eligibility criteria of a gold loan is simple as compared to the other unsecured loans. Anyone can apply for a gold loan subject to certain conditions.

What are the necessary things required to obtain a Gold loan?

The eligibility criteria of a gold loan or any other loan describes all the necessary things that are required to apply for a gold loan. Also, the eligibility criteria of a gold loan is really simple as compared to the other loans. The best part about a gold loan is that anyone can apply for a gold loan, any person who has some gold jewellery or gold coins is eligible to take a gold loan. Most of the people know a bit about the credit of a gold loan, its eligibility criteria, documents required, etc. The eligibility criteria of a gold loan is really simple so that any person who possesses some gold coins or some gold jewellery can apply for a gold loan and is eligible for a gold loan. As a borrower, you do not need to give any income proof documents like the salary slips or the bank statements. Also, eligibility criteria for a gold loan varies from bank to bank.  The EMI can be calculated with the help of a Gold loan EMI calculator. Following are some of the basic guidelines of a person who can apply for a gold loan from any bank or any other financial institution:-

1. Age of the applicant:
   Any citizen of India who is above the age of 18 years and below the age of 70 years can apply for a gold loan. He is eligible for a gold jewellery mortgage. However, most of the banks also demand a co-borrower if the age of the applicant is above 70 years.
   
   
2. Profession of the applicant:
   Most of the banks and the financial institutions in India offer gold loans or jewellery mortgages to the salaried employees, self-employed professionals and the businessmen. It also includes the farmers and traders.
   
   
3. Accepted quality of the gold:
   For the eligibility of the gold loan or the jewellery loan, a borrower can deposit the gold in any form like jewellery, some coins or as ornaments.

• Purity of the gold- The minimum purity of the gold that is deposited must be between 18 karats to a maximum of 22 karats or 24 karats. The minted gold coins are only accepted if they are 24 karats and a maximum weight of 50 grams. The approved amount of finance is determined mainly by the weight and the current market value of the gold that is deposited.

Documents That are required for a Gold loan:

The following are the documents that are required for a gold loan are: -

• Identity proof- Pan card, Adhaar card, Passport, Voter ID.
• Address proof- Driving license, electricity bill, passport, rent agreement, gas bill, etc.
• Additional items- two passport size photographs

  Some of the banks also ask for the income proof documents: -

• Salary slips ( of the last three months)
• Bank statements ( of the last three months)
• Form 16 of the last financial year
  
  

What is a Gold loan?

A Gold loan is a loan that is offered by the banks or the non-banking financial institutions to the customers who are in need of a loan. By availing a gold loan, a person can make use of the gold that has been lying in his locker for ages. Now, you can not only look good by wearing gold but can also make smart use of it with the help of a gold loan. You do not have to sell your gold to get some money. Here, in a gold loan, you just need to provide that gold to the bank or to the money lender as a security or collateral and after the successful repayment of the loan, you will get your gold back in no time.

 Why should you apply for a Gold loan?

• It is really easy to apply for a gold loan. A person can also apply online for a gold loan.
• The eligibility criteria is really simple in a gold loan.
• There is minimal documentation in a gold loan.
• SBI Gold loan provides minimal documentation.
• Your gold will be in safe hands.
• You can also get a discount if you provide extra collateral.

Also Read:- GOLD LOAN FROM BANKS OR NBFCs? 

Indians have been using gold in abundance since a long time ago. In addition to attracting the people’s attention, Gold can make one rich or save one from a financial crisis. And the best way for that is taking out gold loans from banks and NBFCs.

A loan provided against gold article(s) by authorized lenders like banks and Non- Banking Financial Companies( NBFCs) to customers in want and need is a gold loan. This gold loan has been in existence long before the Reserve Bank of India and the Government of India even legalized it. People have been accustomed to this loan mainly because of the pledged asset ( physical gold).

Gold is a liquid asset, and the ease of carrying is high. And this seems to be a significant reason for its higher demand than other secured loans like property loans, home loans, or business loans where the asset is a land property or a house or a business. Banks also prefer this loan over others like people as the collateral remains in their hands till the borrower pays off the loan. A Gold Loan EMI Calculator on the bank’s official website or NBFC can be used to calculate a gold loan’s interest based on the loan amount and tenure.

Apart from the collateral requirement, a loan can also be separated as a specific purpose loan and a general-purpose loan. For example, a personal loan can be used for any reason, but a car loan or study loan can only be used for car-related services and educational tuition fees. Like a personal loan, a gold loan can be used for any reason, but unlike a personal loan, a gold loan, as mentioned, is secured and has better features than a personal loan.

The principal amount availed on a gold loan can be used for business, construction, renovation, home remodeling, vacation, wedding, buying machinery, education, medical emergencies, and so on. The bank or the financial institute a borrower avails loan on doesn’t raise a single question on its usage. Also, the loan is highly convenient, and the processing is rapid; therefore, if you want urgent money, always go for a gold loan, as you can have the money in your hands in very few hours, if not minutes.

There are various benefits of availing a gold loan. The first one is the minimum documentation requirement. There are more loans in the finance market than one can count, but most loans have one or two things similar. The bank or NBFC requires income proof to know the applicant’s monthly income for the repayment of the loan.

A CIBIL score is a three-digit number that summarises the applicant’s credit report, which contains personal, banking, and professional information, including the past credits( loans or debts availed from banks or financial companies). This score indicates the applicant’s repayment capacity, so if the score is high, the lender understands that the applicant can pay off the loan smoothly. If not, then the applicant’s repayment capability is low, making the bank or NBFC hesitate to sanction the loan.

But with a legal age applicant and a gazetted document for ID proof and collateral (physical gold), and a filled application form, the applicant gets gold loan approval. Due to this, the application’s processing becomes fast, and the loan amount’s disbursed is speedy. And that’s why the gold loan’s demand is only surging over the years.

Muthoot Finance Limited provides the best gold loans in the nation. The financial company provides gold loans to a maximum of Rs 1crore of LTV up to 90%. The interest rate of the gold loan starts from 7%. The processing charge is 1% of the loan amount and the prepayment fee incurred is NIL. The NBFC provides bullet scheme payment and EMI payment for repayment options. Both online and offline services are available, and one can choose either. Muthoot Gold Loan Online Quick Payment searched on the internet provides ways for repaying your gold loan quickly from anywhere in the world within minutes. The financial company is highly reliable and well-known for its exemplary customer service.

Also Read:- What Is An Agriculture Gold Loan Scheme? 

Many clients with gold in their hands are looking at gold loans as a method to meet their credit demands, and Indian financial institutions provide a range of gold loan options as well. Gold lending companies and banks have observed an increase in demand for gold loans in the preceding year after the coronavirus epidemic.

Many customers with gold in their possession are exploring gold loans as a way to satisfy their credit needs, and Indian financial institutions provide a variety of choices for gold loans too. Since the coronavirus outbreak occurred, gold loan firms and banks have reported a rise in demand for gold loans in the previous year. Customers may also apply for a gold loan online, where the bank would assist them in selecting loan options through their website or mobile app. Customers can compare interest rates and select the most advantageous choice. The applicant is subsequently verified by the financial institution using their Aadhaar card data and a video-based KYC procedure. From this point forward, the financier assures the safe custody of the gold until the loan is repaid and the gold is not taken back by the client. If the client does not repay the loan capital, the lender has the right to keep the loan and auction it off to reclaim the investment. This is where the Yes Bank gold loan comes into play, as clients are asked to repay on time and, in the case of a claim, to renegotiate the loan payback terms.

When a user agrees to part with gold jewellery or bars by vowing against the financial entity's gold loan transfers, they are given a receipt, also known as a pawn ticket, that contains all of the facts about the claimed ornaments, including weight, images, and other information. When clients choose this service, a business representative comes to their house to assess their gold jewellery on the spot and select and agree on a credit amount, which is subsequently sent to the customer's account. Always check the credentials of policymakers who are scheduled to visit ahead of time to ensure security. With the effect of COVID, the customers can request this doorstep facility to avoid contact with people in this epidemic situation.

How does the gold loan work?

Customers are not required to pay back the loan in monthly instalments. They have the option of making bullet repayments, which refer to a one-time payment for the whole amount owed on a loan, generally at maturation. The consumer has the choice of repaying the balance and closing the account or reviewing the jewellery to extend the term. Before giving a loan amount, the lender examines the pledged jewellery in terms of purity and weight, as well as the jewellery ownership and identification documents supplied, before determining the LTV (loan to value). Gold has been regarded as a valuable treasure by civilizations from the dawn of time. Gold is a proven technique to create cash resources rapidly in times of need. If you're thinking about taking out a Gold Loan against your real gold, you should use Yes Bank's Gold loan calculator to plan out your gold strategy. The calculator is a simple, user-friendly online tool that may be used to determine your monthly, quarterly, or half-yearly interest/EMI for a gold loan repayment. You can figure out what loan you're qualified for and how much interest or EMI you'll have to pay if you know the quality and net weight of gold jewellery.

How to attain credit scores in a gold loan?

Credit score providers are cautious of notifying gold loan companies about defaulters, and a downgrading may hurt a customer's chances of receiving other types of loans. Because gold loans are backed by your gold, you should be cautious about loan repayment and only borrow the amount you need and can comfortably return.

Conclusion

Clients are required to return the loan on time and, in the event of a claim, to renegotiate the loan payback conditions. This is where the bank gold loan comes into play. Customers may also apply for a gold loan online, where the bank will guide them through the loan selection process via their website or mobile app.

Also read this: Benefits Of Gold Loan 

The lender always goes for the gold purity check and measures the weight on the idea of which it evaluates its market price. Gold loans are often sanctioned up to 80 per cent of the calculated value of the pledged gold. Once the worth of the pledged gold is evaluated, the documents are verified. If everything is proper and promising to your bank or lender, they will approve the gold loan.

Nowadays, anyone can apply for a gold loan through online the bank's or lender's portal application or official website. But applying for a gold loan online doesn't mean that you simply won't need to visit your lender. To avail the power of the web gold loan, you'll need to visit your lender a minimum of once to deposit your gold articles. Once this is often done, you'll register yourself at the lender's customer portal or mobile application and link your checking account with it. So in future, whenever you're in need of money urgently, you'll apply for a gold loan and obtain the available credit disbursed in your checking account anytime, anywhere, in only a couple of minutes.

Alternatively, you'll also apply for a gold loan at the nearest branch. It's a web platform where you'll check your gold loan eligibility, compare gold loan schemes offered by different banks and NBFCs and obtain loan approvals quickly.

What are the benefits of the gold loan ?

Quick process :

Gold loans are the secured loans, and it wants usual eligibility criteria and nonminimal documentation; it doesn't even require a credit score for loan approvals. And thus, lenders generally disburse the loan in only a couple of hours. People that are eligible for a web gold loan can even get the loan amount in only a couple of minutes.

Lower rate of interest : 

As compared to an unsecured loan like a personal loan, gold loans, which may be a secured loan, charge a lower gold loan interest rate. Also, if the applicant wants to use another asset as the mortgage, the gold loan rate of interest is often decreased further.

Processing fee not required :

There are many lenders who do not require processing fees on gold loans; sometimes, a lender may charge processing fees, it's usually 1-2%.

No need of foreclosure charge :

Some lenders don't want pre-payment charges, while a number of the banks do charge a pre-payment penalty of 1%.

Earning proof isn't needed :

Banks or Lenders usually don't want income proof to proceed with gold loans because the gold loan is secured; gold is act as a security. That's why everyone can apply for a gold loan; how much they are earning does not affect to apply.

The credit score isn't required : 

Unlike most loans, gold authorization doesn't depend upon your credit score. Just in the case of other loans, the loan amount is given on the idea of the repayment capacity and credit history of the borrower, but within the gold loan, the loan amount is set on the market price of gold.

What is the gold loan advantage ?

LTV (Loan to Value) Ratio : 

For a gold loan, you will get a particular percentage of the market price of the pledged gold because of the loan amount. The loan amount is set on the idea of the LTV ratio. The ratio varies from lender to lender, and it goes up to 70% of the worth of the pledged gold. This suggests that if the market price of your gold is Rs. 5 lakhs, you'll get a maximum of Rs. 4 lakhs.

Due to loan default, you'll lose your gold : 

just in case of gold loan default; lenders have the right to freeze your assets and auction it to urge the outstanding gold loan amount.

Always check for the gold loan EMI calculator on the lender's website. It is helpful for the applicant to know how much they have to pay the total gold loan amount.