Blog #Gold Loan

Gold Loan scheme:

The schemes for acquiring DCB Bank Gold Loan are:

Agricultural purpose Gold Loan: This loan can be acquired by farmers or agricultural labourers. A Proof of agricultural land is requested while availing loan under this scheme. The loan amount can only be used for agricultural purposes.

Non-Agricultural purpose Gold Loan: This loan can be acquired by self-employed, salaried, business people, homemakers, students, etc. The occupation barrier is not present for availing of the loan under this scheme. Income proof is not required.

 The gold loan can be avail for:

Medical emergencies due to health issues or accidents Home renovation or construction purposes.

Higher education purpose

Debt consolidation purpose

Travel purpose

Wedding purpose.

Personal needs/use.

Why is Gold Loan most acquired?

Many people take out loans for savings, college and medical costs, business needs, wedding expenses, etc. There are no restrictions on the loan's ultimate purpose or its utilisation. You can use the money to pay for a necessary purchase, home renovations, a holiday, or just about anything else as long as the reason is legitimate and not unlawful.

Gold Loan Process: The applicant must check his/her eligibility by adhering to the Bank’s Eligibility criteria. The Gold Loan application can be submitted online as well as offline. Document verification is the following process after applying. Proof of residence, Identity proof, along with two passport-sized photographs, are requested. A Purity test of Gold is conducted for assessing the composition and added impurities in Gold. The Bank authorities conduct the Purity test of Gold. After completing all the processes, the loan is sanctioned. A Sanction letter is generally issued in the applicant’s name, which contains details about the lending bank, Loan scheme, total loan amount sanctions, processing fee, Interest rates, foreclosure charges, Repayment options, tenure period, repayment options etc. When the applicant agrees to all the terms and conditions of the bank, the loan amount gets credited to his/her bank account in a short while.

Gold Loan Repayment options: Repayment of Debt is never easy for the borrower. An indicated amount has to be paid by the borrower towards every month end. A few options are given by DCB Bank from which one can choose a per their convenience.

 EMI Payment: During the tenure, pay monthly instalments that include both principal and interest. The Gold Loan EMI Calculator will help you figure this out.

Advance Interest Payments: Pay the whole interest rate upfront and the principal towards the end of the term.

Interest Payments at Regular Intervals: Pay only the interest at regular intervals of monthly, quarterly, semi-annually, or annually, and pay the principal after the term.

Bullet Repayment: You have the option of not paying a single rupee during the term. At the end of the year, pay both the principal and the interest.

Overdraft Repayment: You are only charged interest on the amount disbursed by you from the total loan amount sanctioned.

Benefits of a Gold Loan:

A Gold Loan can get approved in a single bank visit.

There is no need for a credit score.

No proof of income is requested.

To avoid theft or forgery, proof of address and identification is needed.

The loan is processed even faster than most loans.

The interest rates are minimal.

A processing fee of 0.85% of the total loan amount is charged.

There are no costs for paperwork.

After three months, there are no foreclosure payments.

There are a variety of repayment options available.

DCB Bank Gold Loan is the reliable choice when the option for a Gold Loan. The gold loan has lower interest charges and higher tenure periods for repayment. A simple background check and assessment of gold are done for Loan approval. In times of financial miseries or medical emergencies, this is the best option for instant cash availability.

Read More:- Best Way To Choose When Avail Gold loan 

A gold loan is the type of loan where a person can avail of the loan by pledging the gold available in the form of gold and the condition of the coin.  A person will have to be an Indian citizen to avail of a loan. Other criteria need to be checked and followed as per the different criteria and the bank's eligibility, and the NBFCs. The better the options, the easier will it be to repay the loan. As per the requirements, one will have to check and do research to maintain the balance between the payment of the loan and the payment of the other loans. 

The official websites of the different banks and the NBFCs are filled up with varying calculators like that of the eligibility calculators as well. There are other ways of opportunities where a person will have to go through the different kinds of official websites of gold loan eligibility. Gold loan calculator is the type of calculator where a person will estimate the query one is having. For example, the gold loan calculator of the ICICI bank is such that there will be not too much complexity in the matter.

 
There are other options as well. Where one will get the column of carats, weights and the loan amount, which will give the instant answer on the filling up of the columns, in this way it reduces the pressure on the bank staff and also helps the customers to understand their requirements and whether they will need to arrange more or what will have to be done to get a real-time answer as well. Muthoot Finance gold loan offers such facilities. In this way, the gold loan calculator of the ICICI bank works actually. If we move forward, then we can find that in the gold loan calculator of the State bank Of India, one will find the calculator with the column blanks of the name, phone number, address,  loan amount, and weight gold loan and the email ID.

After submitting the information and clicking the submit button, there will be instant information about the estimated status that the eligibility is there or not. State bank of India offers gold loan at the starting of the gold loan rate of 7.50% onwards while on the other side. One can avail the gold loan of about frontage minimum of the Rs of 20,000 to that of the loan amount of the Rs 50 lakhs as well. The amount limit has been kept so that there will not be any problem from the group of the low-income group and the people with high net wealth value.

 
While availing for the loan, some things are there that need to be checked and prepared accordingly. The gold loans can be paid through the EMI and the bullet repayment schemes etc. the loan tenure extends from that of three months to that of the 36 months that is three years. In the Axis bank gold loan case, five columns make almost everything clear. There will be a column for the ornament, which will need to be mentioned what type of jewellery or the form of the decoration is there. Then there will be the column for the Caratage, which will need to be mentioned in the state of purity like that of the 18 carats, 20 carats etc. Based on which there will be a column of the total value and the eligible loan value.

 
Conclusion:
To conclude, we can say that there are many banks and the NBFCs who are having loan eligibility in the form of the calculator, while on the other side of the coin, there will be many options based on which there will be no more.

People try to settle up their loans by taking loans. Each category of loan criticizes each other with their schemes, benefits, and plans. Can a gold loan be taken to purchase something else? Let us go with the topic and try to find out the facts on it.

Gold loan is a type of secured loan that can be given easily by lenders as it involves security so it results in complete safety to both lender and borrower. Several banks and NBFCs only deal in gold loans. why gold loan, When you can avail a personal loan? What makes a gold loan a good option? Laying up security for acquiring a loan is a better option? 

Gold prices have been rolling up since the hike in the prices of yellow metal made gold more valuable. Today the rate per 10 gm gold is 46,415/- which says that gold in its various forms has become more and more expensive and the prices are going to touch the peak in the future.

Usually, if we see the prices of gold and evaluate its value, then the price per gram. Seems like, the prices of gold can increase in the upcoming future which means investing in gold is a secured option but it also requires a huge amount of investment. 

Talking about the gold loan, today banks are easily available to provide you a loan on it. It does not involve any of your past performance, credit score, third party guarantor, just an individual who can submit his/her yellow metal and can take a loan on behalf of it. Now the solution to why the gold loan is a good choice? It can easily be stated that you can arrange a good amount for your use. As we can see the increasing price of gold in the market, it can be easy to detect that prices are going to increase more and more. 

The obsession level of Indians with gold loans brings back an individual to invest in it. Usually in our culture buying gold is considered auspicious on every important occasion, even your gold will bring you up to an option to arrange cash if you are in sudden need of it. 

For eg: a corporation Bank gold loan is outlined with interest rates on different gold loan categories. Gold loans are not only cheaper than conventional personal loans but are also easy to get.

Well, the matter of fact is that a gold loan is considered a far better option than any other loan. Availing a personal may not involve security but the interest rate that will be simply added to your loan amount will create heavy pressure on your repayment amount. Personal loans are available at higher interest prices (usually between 15%-30%) than the interest charged on gold loans. 

What can be purchased on a gold loan? As already discussed above, a gold loan is a very good option to arrange cash in time of requirement. Easy process and more value to your security will increase your purchasing power. Sometimes people surround themselves with a situation where they have to surrender things on bad terms but in a gold loan, there is no such issue as you have already mortgaged your things on behalf of which you have been given a loan. Today the RBI, the regulatory body of India Also declared to increase the loan amount value on gold up to 90%. 

Reasons for taking a Gold loan : 

1. Expansion of business.
   
   
2. Short-term needs mainly in terms of emergency.
   
   
3. Repayment of the personal loan amount, or any unforeseen events.
   
   
4. Also, the gold loan can be used as a bridge to pay down payments for purchases such as cars and homes.
   
   
5. Personal use, such as money received from Gold Loans can be used to fund a wedding, education plan, hospital expenses, etc. 

CONCLUSION: Gold loans are hassle-free and less time-consuming. It is important to address the situation of whether to take a gold loan or not. Unnecessary loans or gold loans are taken to further repay the previous debts can create heavy pressure on your pocket.

Also Read:- Gold Loan Plays An Important Role In Medical Emergencies Too