Blog #Gold Loan Per Gram

One of the most extensive facilities of gold loans is, people can use it for any purpose, including medical emergencies. The surge in the rate of gold loan applications was witnessed during the pandemic and is still rising. After the Covid cases declined, the demand is still high. 

There is no questionability about the usage of the funds advanced in a Gold Loan. Mostly, the lending institution does not ask for a good credit score or any income certificate or salary slip of the borrower. These traits of a gold loan make it popular among the masses as a short-term finance option. A  gold loan amount credited can be used for numerous purposes, like weddings, travel, paying medical bills, etc, and timely repayment of the loan amount is the only concern of the crediting institution.

However, there are dedicated loans like home loans, car loans, medical loans, etc for most of the purposes mentioned above. When people face an urgent financial crisis they often prefer to get a gold loan and meet their demands. The justification is simple because gold loans come with lower interest rates, and there is no requirement for a credit score. The nominal documentation work that a gold loan approval requires makes it a convenient option than a personal loan. Moreover, almost everyone from any class can access gold loans due to its manageable process.

The quantity of loan offered against the pledged gold will be based on the advance value of gold jewelry per gram, depending on the purity of gold and it must be within 18 to 24 carats of gold. This amount is called the gold loan per gram. The interest rate will be the one-year MCLR rate and an additional 1.25%, considering the loan to value ratio. There are various factors on which the gold loan per gram is offered to the customer and it can be evaluated before a person takes a gold loan. But the borrower must make sure that he repays the loan amount within 12 months from the date of disbursement of the gold loan. But, to pledge against the gold loan, many lending institutions do not allow any gold bars, and bank gold coins of only 50 grams are allowed to be kept as security.

The decrease in Covid cases increased economic activity in many states after the restrictions were not made stringent. In the last few days, the demand for gold loans and customer walk-in has enhanced the Non-Banking Financial Companies. Most people are now opting for a gold loan amount of Rs 55000 to Rs 60000, as reported by the NBFCs. But after the Reserve Bank of India increased the loan to value ratio only for the bank, it negatively impacted the gold loan business of NBFCs. As a result, the LTV ratio went to 90% before the increase was just 75%. But this persisted only up to the 31st of March 2021.

Most of the NBFC has aimed to work on a growth rate of 15% or more. NBFCs are always known for filling the gap that the Banks create and thereby catering to individuals’ needs.

People who want to get a gold loan against pledging gold ornaments do not quickly get gold loans from Banks. Many ordinary people or small-time people in business do not get easy and instant credit to meet their immediate problems from the banks. NBFCs generally rescue those people and furnish them with Gold Loan as per convenience. The demand for gold loans is increasing due to the prevailing credit crunch and the lack of a moratorium and financial support policies laid down by authorities.

The gold loan schemes of Non-Banking Financial Institutions are a savior for most people and some small businessmen. NBFCs furnish them with a gold loan to get instant access to funds at a more extended repayment period. This makes NBFCs an alternative source of long-term capital. A person is free to choose whether he wants to take a loan from a bank or NBFC, or any local lender. Every lending institute has some advantages and drawbacks, but the convenience of the customer is the priority. Manappuram gold loan rate per gram and SBI gold loan rate per gram may vary, but being a potential customer, one must do a proper study of the gold loan market and then decide which institution to choose.

Must Read:- Indian Gold Market Has A Top Spot In World Economy 

India is well-known for its heavy reliance on gold. Gold is a yellowish metal that can be found naturally on rocky surfaces. This metal has varied meanings for different individuals, but it is regarded as a valuable commodity for the most part. Financiers and economists use that asset worldwide to lend money and, more recently, as a repayment alternative.

A gold loan is a secured loan secured by gold items such as necklaces, chains, earrings, rings, bangles, bracelets, bars, coins, or any other form of gold that is legal tender. The loan is for a set amount of time and the quantity given is determined by the purity, weight, and current rate of gold. For 10kg of 24-carat gold, the current price is RS. 48,230. The gold purity should be between 18k and 24k. Because gold can be of any weight, the bank and NBFCs do not have a number for their weight. Therefore, the gold must be lawful. In most banks and NBFCs, the loan-to-value ratio is 90%, and the sum can be as much as Rs 1crore.

The gold loan can last anything from three months to three years. The interest rate on a gold loan ranges from 7% to 20% per year, depending on the amount borrowed and the loan term. A low interest rate is associated with a lengthy tenure, while a high interest rate is associated with a short tenure. The most vital thing is to decide on an interest rate that you can afford.

The Reserve bank of India has released the most recent gold loan repayment schedule. According to the report, a borrower can return the entire loan amount with gold article(s) or decorations rather than cash. Banks and Non-banking finance companies (NBFCs) can now get actual gold in exchange for money due to the agreement that must be updated to reflect the revised repayment terms, which must be accepted and implemented immediately, the repayment must be accounted for according to the locally supplied IGDS ( India good delivery standard) or LGDS (LBMAs good delivery standards) gold.

According to the article, the gold must be transferred straight from the jewelry to the lender. Gold Loan per gram estimates the amount of money you can borrow against your gold jewelry. The amount of loan will be determined by the purity and gold price of your jewelry, which will be adjusted for the loan to value ratio. A gold loan comes with a variety of repayment choices. There are three payment options: bullet scheme, half payment, and monthly installment.

The bullet scheme is a well-known gold loan payment. By choosing this option, you as a borrower will be responsible for paying both the principal and interest at the end of the term, you as a borrower don't need to pay an interest amount each month or at a regular interval. The payment is made at once and for all. The partial payment mode is where you as a borrower can pay the partial amount of both the loan amount and interest amount you see fit. You don't need to follow the monthly period and can pay them as per your flexible schedule.

To opt for this, you should make a gold loan online scheme payment with your bank or NBFC. A wish choice in payment would be paying your principal first and interest as days pass. This is because the interest rate is calculated based on the principal, and paying off the most initially would reduce your interest. The equated monthly installments (EMIs) are the most common and widely used method. Here you pay the interest amount each month until the tenure and pay the principal at the tenure. Apart from the above three options, there is another scheme commonly for salaried people(regular cash inflow), where you can pay a partial amount of the principal amount in addition to the equated monthly installments, the IIFL Gold loan offers a financing cost of 11%. It permits the gold credit holder to possess an advance residency for the best time of over 4years as per the arrangements made by both the gatherings, which will be allowed with the gold advances.

Read More:- For what reason would it be advisable for me to take a gold credit? 

In our country in India, the gold is to obtain for a large amount of jewellery and the coins which are taken out then will account for 50% of the total gold reserves of the whole world based on gold loan rate per gram gold is not only used as jewellery but also can be used in maintaining financial stability even during the time of inflation and the worldwide crisis just like what is happening right now. Gold is the most precious metal in the commodity market with the price fluctuation but not to that kind of extreme effect due to which if properly focusing upon the market trends and the charts. There will be readily understood that gold can easily beat the market trends based on the gold loan per gram rate. This is why there has been no use of Gold loans instead of other types of loans in India. If there is any kind of uncertainty while repaying the loan or will not be able to pay the loan for the same can be sold in the market by the financial institution to recover the leftover amount due.

According to the current phase of the World, India has fought back in a great way to bring about financial stability and is among the top 10 economies of the world. This is because of the reduction in the rates of interest and the other relaxations done so that the people who are finding it difficult in providing the repayment of the gold loan are now being able to properly giving payments on particular time due to which the loan repayment is also not on pause and the financial growth by the revenues of those particular banks and bad debts will not be increasing more.

There are different types of options available for the treatment of gold in our country, which is not like that in other countries. The answer, for this reason, is simply that the population of India is huge and diversifying religion and caste and creeds are the main reason to which such an option has been arranged. Different religions have different festivals, and in all the festivals, there is a significant value of gold being good luck or an auspicious look and whatever the reason may be. For example, the SBI gold loan rate provides facilities for the customers. Due to the vast diversification in the Indian market, the repayment options in the foreign companies or The Financial institutions who have to headquarter outside their India have even given the repayment options as per the Indian needs. There is a tendency of getting the bonus in different kinds of jobs during the festival season which comes near about in October and November. This is why there is a repayment option called the bullet prepayment or foreclosure, where a particular person can pay the interest and the principal amount whole at a time. The last number of the population comes under the capability where the EMI option is the best. The interest and the principal amount are equally divided among the number of months of the tenure of the loan.

In our country, a gold loan is not taken just like the emotion of a gold loan. But, still, it is availed for the different kinds of expenses which are very much familiar in almost all the houses and has been seen that if a person is having a two-wheeler the youngest member of the house who has just completed 18 years is demanding for a new bike while on the other side mother or grandmother is talking about the marriage of their children and grandchildren and planning to simplify that how the shortfall of the gold pieces of jewellery will be done.

Seeing all the conditions and the circumstances before entering the Indian market one will have to get prepared from the beginning that the company or the financial institution whatever it is will have to consider the wide variety of options to serve millions of people who are searching for different kinds of options.

Must Read:- Gold Loan and it's Numerous Uses 

A Gold Loan is the best option for a financial need and crisis. The loan is secured and offers excellent deals. However, a gold loan has multiple features that require adequate research and knowledge before availing one.

What is a gold loan, and How does it work?

Banks and Non-Banking Financial Companies(NBFCs)  provide loans to customers upon receiving gold asset(s) collateral. And thus, a gold loan is secured and has maximum protection. A gold loan is a general-purpose loan, where the bank or the financial institute doesn’t raise questions on a borrower’s reason for availing. Therefore it can be used for any and all reasons. Medical emergencies, inexplicable financial crises, educational needs, home renovation, construction, business reasons, vacations, weddings, technological and electronic gadgets, machinery purchase, the list goes on forever. No matter how big or small the value of reason is, a gold loan is present to help you. Upon pledging the gold asset, the value of the gold is determined based on its purity and weight of the gold. And the loan amount is granted for a certain period. The borrower needs to pay back the owed amount with interest by the end of the tenure. The loan can be availed both online and offline conveniently.

Gold loan features:-

• Easy Processing:- Compared to most other loans, a gold loan has the most convenient and flexible processing. This is because a gold loan only requires the minimum amount of documents. With two photocopies, a valid id proof such as a PAN card, Voter Id, Aadhar Card, Driving License or Passport, and Gold article(s), you can avail of the loan within several hours.
  
  
• Swift Accessibility:- A gold loan can be availed both in online and offline modes. In the conventional face-to-face way, you can just walk into the bank or NBFC and submit the required documents with collateral, and the loan amount is disbursed on the spot. However, upon choosing the online mode, you have to fill an application form and upload the required documents in addition to the required loan details. After the application submission, the bank or financial company calls you for further processing. Both the methods are effortless and have proved to be extremely beneficial over the years.
  
  
• Loan Amount:- The loan amount sanctioned is based on the value of the gold. The purity of the gold is required to be in the range of 18 carats and 24 carats. Authorized lenders don’t accept gold with purity less than 18k. The higher the purity of the gold, the higher the loan amount granted. The weight of the gold must be a minimum of 10gm in a few banks and NBFCs, but most other lenders accept gold of any weight. The gold loan per gram for most banks lies in the range of RS 3,506 and RS 4,621.The loan to value ratio is up to 90%, so if the value of the gold asset pledged is RS 1 lakh, the amount sanctioned is a maximum of RS 90 thousand.
  
  
• Loan Term:- The period the loan is granted for is known as loan term or tenure. The gold loan tenure varies from 3 months to 36 months. The interest amount has to be paid till the end of the chosen tenure. Therefore, choosing the tenure you can afford is primary. Generally, a long tenure has a low interest rate, and a short tenure has a high interest rate.
  
  
• Interest Rate:- The interest rate is a percentage of the loan amount availed. The interest rate is a primary aspect of the loan and needs to be paid on time without default. As the loan is secured, the bank or NBFC has the right to auction your gold if you as a borrower don’t pay interest amount continuously for more than three months. The interest rate of a gold loan is extremely minimal compared to other loans and starts from 7% per annum.
  
  
• The Processing Fee and Preclosure Charges:- Banks and NBFCs charge fees for the processing and approving loans. The gold loan processing fee is NIL in most banks and NBFCs, but some charge a rate of 1% of the loan amount. The Preclosure Charge or the prepayment charge is incurred if the borrower wishes to close the loan account sooner than the end of tenure.
  
  

• Conclusion:-

  Muthoot gold loan is a highly renowned gold loan with the best deals and offers in the market. The financing company often introduces various schemes on gold loans for its customers. The financial institute is highly reliable and trustworthy.

Also Read:- Is Gold Loan the best option? 

RBI has originated a norm for NBFCs that doesn't permit them to provide a loan above 60% of the cost of gold.

RBI became uneasy with the excessive increase in gold loans at NBFCs. It has accelerated its analysis of the gold loan portfolios, even for the banks. RBI needs a decrease in the interest rate on gold loans, particularly for Non-Banking Financial Companies considering concentration threat and the risk of a decrease in gold prices.

Furthermore, RBI's directive that a financial institution credit to NBFCs for giving loans towards gold ornaments will now no longer be dealt with as exposure to the agricultural area might prevent companies to raise funds for gold financing quickly.

Some of the essential factors from the Reserve Bank of India's latest guidelines for NBFCs consist of transparency in gold loan interest rates, due diligence in knowing the payment capability of the borrower, recognition of his present debts, explicit loan agreement, etc. Also, NBFCs that have gold loans of more than 50% of an overall monetary property need to hold a Tier -1 capital ratio of 12% from April 2014.

Why it is a hindrance for NBFCs? 

RBI's guideline is a hindrance for NBFCs due to the fact that the brand new policies require more capital adequacy for the financing corporations, and the thresh hold for the amount of loan against gold is aimed to be at a lower value. This would indicate that ornaments of the equivalent value are required to appear in a lesser loan amount and that too at a somewhat higher cost.

Let's take a look at different components in which NBFCs may be adversely affected. Earlier, NBFCs used to offer as much as 80% loan towards the gold now, and it might be decreased to a mere 60% of the gold value. Gold loans from banks (like Axis bank, Muthoot Finance gold loan, ICICI Bank, etc) might now come to be extra appealing than NBFCs till they're allowed to lend extra at the value of pledged gold. The value of an investment for NBFCs might cross up because of the RBI's restriction to permit the NBFCs to finance their gold loan from the banks as publicity to the agricultural loan. NBFCs would possibly need to lessen the interest rate to maintain withinside the gold loan marketplace. Hence the current income margin might come down significantly.

What's in inclination of NBFCs?

Though this law might hit difficult on the sales in addition to the bottom-line of the NBFCs, there nonetheless a few advantageous components to this circulate:

NBFCs might maintain to experience the niche segment benefit because of their deep presence withinside the gold loan marketplace. At present, NBFCs have a 32% percentage of the whole gold loan marketplace. The gold loan per gram might nonetheless be less expensive than the personal loan, so the dimensions of the marketplace are ready to develop more significantly in the coming days. There are many untapped areas in which NBFCs may want to have a higher reach than the banks. The benefit of trouble-free and short loan processing via way of means of NBFCs might provide them with the threshold over the banks. NBFCs can boost finances via marketplace borrowings, i.e. commercial papers, to decrease the fund's value.

On gold loans:

The RBI movement would create a break between banks and NBFC gold loan operations. The banks are assumed to make an assertive take over on the gold loan division in a strong NBFC presence vacancy. In the present situation, RBI's recent regulation has hit the top and bottom-line of the NBFCs. In India, gold investing is a conventional process, and individuals are required to maintain their inclination towards gold in the near future.

Conclusion:

The regulation can negatively affect the gold loan industry in the short duration for NBFCs. Still, in the long term, the overall gold loan business is set to improve as long as the demand for gold is increasing in the nation, and NBFCs need to lay the ground to pick up the speed again and devise ways to provide to their customers base in an innovative method.

Also Read:- No Need To Require Income While Avail Gold Loan 

Currently, the gold loan is in public demand because it is a key source to arrange money in a shorter period of time, especially in emergencies. Usually, when gold loans are not considered by banks, people try to arrange money from different sources leading to high-interest rates. An individual's buying power is determined by their salary and the amount of work they do to earn it. In today's world, running a company is a tough call. If you want to enter the market, you'll need to come up with an idea that will allow you to play monopoly.Having a startup or setting up an office doesn’t mean that you will start earning from the very first day. It is often to keep patience if you go setting up a business because things take time to get settled and if you went for a start-up then you need to wait for a stable earning until the balance is not made.

WHAT ABOUT ARRANGEMENTS ?

When starting a company, you must have a detailed plan in place, as well as an investment amount to go with the flow. But what if an emergency arises? Are you not supposed to choose between sticking to your strategy or coping with the situation? Oriental Bank of Commerce Gold Loan is the best choice in these situations.If you have idle money, you can use the pledged gold to help you get out of these circumstances. A gold loan is a quick step-by-step procedure that needs less paperwork and offers more value for your yellow metal in a short period of time.
As a result, if you have a significant amount of gold on hand, your business plans will proceed without hindrance in terms of capital or expenditure. Though gold never inquires about your history or past, it guarantees that you will be given a valuable sum that will allow you to take a step forward toward a bright future.

GOLD LOAN FOR BUSINESS:- 

Fast approval and disbursalOwners rarely have the patience to go through a lengthy loan application and approval process during a financial emergency. Nonetheless, most banks and non-bank financial companies (NBFCs), such as Gold Loan Per Gram, impose a number of formalities that slow down the operation. After you fill out an online application, a loan officer from the company comes to your home to assess the value and purity of the pledged jewelry. After the gold is valued and the KYC documents are submitted, applicants obtain immediate approval. The amount if approved will be disbursed on the borrower’s account in just 30 minutes.

• Facility To Check Loan Eligibility Online:-
  
  

As a result, choosing gold loans for business helps you to prepare ahead of time for the loan balance depending on the gold you'll be pledging. Pre-approved loans will help a business plan its expenditures even before taking out credit.

• Streamlined Documentation Process:-
  
  

On the other hand, gold loans need very little paperwork. An individual may apply for a gold loan by simply submitting his or her KYC documents, for example.

• Credit Options For Poor Credit Scorers:-
  
  

It means that you can get a gold loan even though your CIBIL score is low due to past loan defaults. Traditional business loans, on the other hand, are only available to those with a credit score of 650 or higher. Even the appraisal of gold for a loan can vary. The gold rates in Chennai, for example, may vary from the gold rates in Ranchi.

• Loans Available At Your Doorsteps:-
  
  

Your gold items can be tested in front of you by a manager, who will assess their value and weight. Based on the findings, a proportionate sum is disbursed to your account almost instantly, within 30 minutes. To ensure greater honesty and trust, the loan manager only leaves your home with the pledged gold after you have received the loan principal in your bank account. Hence, your business needs can be fulfilled without leaving our homes.

• Complete Security For Gold Jewelry And Ornaments:-
  
  

In India, gold jewelry is valued not only for its monetary value but also for its artistic and historical value. These ornaments are known as family heirlooms because they have been passed down over the centuries. As a result, most loan applicants are concerned about the safety and security of the pledged goods.

Read More:- Why Has Gold Loan’s Demand Increased Over Time? 

Most of the people who are unaware or have some trouble choosing the basic income are sufficient and steps to be taken before opting for the best gold loan, this is the correct destination you are, we are very fast going to take everyone through the whole of the process of how one can have the sufficient income as well as apply for the gold loan against their gold or jewelry. If you are looking for the best gold loan, you always need to check whether the value of the pledged gold would be very enough to meet the gold loan requirement. You must always compare the options to find a very good deal with the repayment terms. 

You should always try to check for all the things like interest rates, tenure period, or other things. Most importantly, always try to ensure you have a thorough repayment plan to be able to clear the gold loan dues in full on period and avoid some of the additional penalties as well as loss of a precious. To help you in that regard, there are some of the very few interest rates on these gold loans that are currently being offered by many of the best banks. And the gold belongings can be in the form of gold articles that are simply offered at the period of gold loans, gold, jewelry, or other things. So any of the candidates or a customer should always be aware that they should be in the position to own any of the above-specified gold in the form of your gold ornaments.

Once they are also looking at and simply taking care of this, any of the candidates or any of the borrowers is to meet some of the basic eligibility factors that they should have or simply fulfill in the time before opting for the best of the gold loan. Some of the basic forms of the eligibility factors always remain the same, but some of the basic details can change from one financial institution to another. When you apply for a gold loan then you need to cross-checks as well as verify the identity of their candidate or any of the borrowers before financial institutions grant them the best gold loan. But some of the things they do not have to stress are regarding any of the files as well as documents containing the income information because there is no basic limit that is requested by the banks or financial lending institutions.

Some basic things and taking care of them which can also change from the financial lending institutions like banks or non-banking financial companies and the tenure period which they simply offer all the people with or even the rate on this gold loan interest may vary. Gold rate in Hyderabad is also less. If you see the current price then it is a little bit less that’s why Hyderabad people can simply choose the best of the gold loan. City Union Bank gold loan always offers its loan to every holder with a rate of only 7.0% per annum. So due to that, all the borrowers can very simply choose whatever interest rate as well as the good tenure period of the gold loan.

Bank gold loan per gram rate is almost the same as  all banks will see the same price because the price always decides the RBI but sometimes you will see some banks charge a little bit high. So if you want to choose the best gold loan then you always need to check the bank position and the interest rate the bank is charging.

Read More:- Does The Eligibility Criteria Need To Be Fulfilled To Obtain A Gold Loan? 

They have several misunderstandings about gold loans and how they work. If you're in confusion of whether or not to take out a gold loan, keep reading to learn about some common misunderstandings. Individuals or applicants can use the Gold Loan EMI Calculator to estimate how much interest they'll pay on a gold loan secured by their gold or gold jewellery.

HERE ARE SOME  MYTHS ABOUT TAKING GOLD LOAN 

It Takes A Long Time To Get A Gold Loan:- When it comes to gold loan myths, this is the most common in all of them. It is a very lengthy process but the truth is   gold loan is the only type of loan that can be obtained on the spot. Gold loans are approved and disbursed within a day, if not an hour, by banks and non-bank financial institutions (NBFCs). A gold loan is the way to go if you're in urgent need of cash. Gold loan Per Gram gives you an estimate of how much money you may borrow against your gold jewellery.

If You Have Old Traditional Jewellery, You May Not Be Approved For A Gold Loan:- Many people believe that banks and non-bank financial institutions (NBFCs) only lend money to persons who have  new or recently purchased gold jewellery. As a result, despite having a large number of antique gold jewellery, people would not seek a gold loan. However, let us dispel this myth: banks will lend money on antique gold jewellery. The gold must be pure and at least 18 karat to qualify for a loan.

The Gold Loan Is Exclusive Get By Jewellers:- Many large banks and non-bank financial companies (NBFCs) now provide easy gold loans with low interest rates. Many banks and non-bank financial institutions (NBFCs) began to offer gold loans as more people began to invest in gold. There are only a few non-bank financial institutions. Gold loans are a specialty of non-bank financial institutions (NBFIs). It is always safe and secure to take out a gold loan from a reputed bank or non-bank financial institution. Those who assume that gold loans can only be obtained from jewellers and are concerned about their reliability may seek a gold loan through a bank or non-bank financial institution ( NBFC). The IIFL Gold Loan provides secure on-the-spot processing, as well as various repayment choices  with attractive rates of interest.

Your Gold May Be Discreetly Switched:- You must maintain your gold at a bank or a non-bank financial institution (NBFC) to secure a loan against it. If you repay your debt within a certain time frame, the bank or NBFC will return your gold jewellery. Many people assume that money lenders replace your ornaments with fake ornaments. As a result, many people decide against taking out a gold loan because they are worried about their valuable jewellery being stolen.This is not the case, however. To secure your gold loan kept as collateral, banks and non-bank financial institutions (NBFCs) have special security and locker procedures in place. It will only be removed once you have paid off your loan in full. As a result, you can confidently hand over your gold to a bank or non-bank financial institution (NBFC) for a loan.

Gold Loans Have Extremely High Interest Rates:- Banks and NBFCs charge varied interest rates depending on the type of loan. If the loan is unsecured, the interest rate is high, but if the loan is secured, the interest rate is low. A secured loan, such as a gold loan, is a type of secured loan. As a result, banks and non-bank financial companies (NBFCs) do not impose excessive rates of interest The interest rate on gold loans can range from 10.26% to 26 %.

Also Read:- Why Should We Choose A Gold Loan?  

Gold loan has been a  Saviour. It has helped so many people in financially difficult times. Gold Loan per gram ranges between ₹ 2,741 to ₹ 3,350. One can easily get a gold loan at a very reasonable interest rate. For applying for a gold loan visit the online website of the preferred bank or you can also visit the nearest bank branch.  

PNB gold loan requires easy application with minimal documentation. The documents required 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 demanded by the bank. The bank also offers amazing schemes on gold loans. One can get a gold loan at an affordable interest rate at the bank. PNB bank is recommended for getting a gold loan. For more information one can check the online website or app of the bank. 

Loan to value is used by the lenders to define the ratio of the loan to the market value of the asset. The term is commonly used by the banks and non-banking financing companies(NBFCs). There has been a recent rise on the loan to value on the gold loan. The loan to value of gold loan has increased to 90%. Due to the covid-19 lockdown so many people were affected,  so the government decided to increase the loan to value on gold loans. Now people can avail higher loans against gold. LTV is a very important aspect of loan; it refers to the amount of the loan a borrower can avail against the gold as a collateral. The LTV for gold loans is quite high. Banks and non-banking financing companies can lend more money against the gold as per the new rule. This is one of the biggest advantages of getting a gold loan as the LTV offered is quite high and can help dealing with financial difficulties. 

There are various features of a gold loan. Some of the key features of the gold loan are listed below:- 

1. The processing time of the gold loan is faster in comparison to other secured loans. The application processing is faster. The loan is processed within 72 hours of the application.
   
   
2. Minimal documentation is required for getting a gold loan. Documents such as identity proof, residence proof and age proof are required. Anyone can get a gold loan providing these minimal documents.
   
   
3. Fast approval is one of the key features of the gold loan. In gold loan the banks and non-banking financing companies(NBFCs) provide fast approval. The loan is sanctioned into the account of the borrower after the verification of the documents.
    
4. The LTV value for gold loan is high up to 90%. One of the biggest advantages of the gold loan is that it has quite a high LTV value which makes it ideal in the financial emergencies.
    
5. An applicant does not need to provide salary proof. The only thing important for a gold loan is the purity of the gold. Without salary proof getting a gold loan is possible. 

Conclusion -

Gold loan has various features but one of the most significant features is its high loan to value(LTV). An applicant can get a higher amount of loan by submitting gold as a collateral to the bank or non-banking financing companies(NBFCs). There are also various schemes which can be availed during a gold loan. Gold loans are very advantageous for the people. Many people around the country are investing in gold. Investing in gold is a smart choice as they are very precious assets in today's modern times.

Read More:- The Role of LTV in GL Approval Process 

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 

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 

We all know education is a vital aspect of life and everyone should get the right to education. Education is the only thing that can fill the gap of poverty, the gap between a developed and underdeveloped nation etc. Education can imbibe a feeling of oneness and eliminate these stereotypes based on caste, religion, race etc. So, it is very important that each one of us should have the right and privilege of getting an education. But as we know that for availing education one needs to spend money and everyone cannot afford to spend huge amounts of money, so here’s what one can do, they can avail a gold loan for funding their education.

It is a well-known fact that education can be quite an expense in itself as nowadays colleges and schools have a lot of tuition fees, so how should one provide their children with good quality of education, it is simply that one can avail a gold loan for funding their child’s education. One might think of going for an availing education loan, but let me tell you that process can be very tedious and difficult involving a lot of conditions burdening the child and his family. But with a gold loan, this process can be made easier. 

Let us discuss some of the reasons why one should go for a gold loan-

1. It requires no stringent eligibility criteria: Unlike, most education and other loans, the bold loan does not require to follow strict eligibility criteria for availing it. For education loan, many academic criteria are also taken into account in some cases but with a gold loan, it is not the case.
2. No end-use restrictions: In the case of education loans, they do not necessarily cover the tuition fees and other academic-based expenses, especially in the case of students studying abroad, they only cover the extra charges, for example, airfare or travel fare, cost of living, lodging costs, other associated costs etc. but at the same time there are no such restrictions in case of gold loan, they can be utilised without end-use restrictions which add to the advantage.
3. No CIBIL score requirement: For availing an education loan, which the banks provide at a very high rate of interest, the borrower should have a good CIBIL score, and it is very difficult for students to provide a good credit score especially when they don’t have a previous history of borrowing. While, if we look at gold loans and compare the two, gold loans do not require any such CIBIL score for availing loan or fulfil any such criteria, which can be beneficial for students as they can improve their credit score by availing such loan.
4. Minimal documents required: While education loan requires many formalities to be taken care of and many documents to be presented, the gold loan comes in easy, simple and quick as they don’t require any extra documents and formalities to be done, they are very easy to get done with and if everything is correctly presented and taken care of, one can avail a gold loan within one day.

Several other benefits come along with availing of gold loans over education loans. But since they are easy to avail, that does not mean that casualties can be overlooked, one should still be very careful with all their documents, keep in mind the gold loan calculator and check for the Gold Loan Per Gram so that they can compare and then apply for the highest price they get.

When applying for a loan, one should go for the bank that provides the best price with a good interest rate so that you can avail the loan without stressing and Karur Vysya Bank Gold Loan is one such solution to your problems as they provide gold loan interest rate starting from 7% per annum and accept minimum 18 carats of gold. In addition, they provide 75% of the total value of gold to you and provide a flexible tenure. They have very less, transparent extra charges and also net invisible processing charges along with that they provide you with many attractive gold loan schemes.

Also read this: Gold loan for Home renovation