Blog #IIFL Gold Loan

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? 

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 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 

Owing to the cancellation of the Japan Olympics, the entertainment sector and the tourism sector, restaurant chain systems, and an ample number of different sectors have been affected due to this pandemic. It is very much thankful to the services of the banks like that of the loans and advances which have made the people meet the requirements which are essential and were somewhere related to urgent basis. Gold loan and personal loans have been used the most as it is free from most of the complexities like that of the other kinds of loans and are much more secure than fast.

Different types of companies had given sponsorship for the IPL league matches, which is considered one of India's biggest festivals. IPL is also under the shadow of the pandemic in which the teams have interacted and found to be called positive during the tournament. Thus, the part of the loan for the purpose has been given some relaxation according to the new rules of provisions of the moratorium period. In the meantime, the government and the finance ministry have also decided to give peace to the customers like that of the services availed for a gold loan or personal loan where the tenure of the four years has been extended till five years.

Gold loans can be said as an alternative to a personal loan where the gold is used as collateral security by the bank. Still, it is not named collateral but is termed a pledge kept in the bank based on which the loan amount is advanced towards the customers.

In the case of the gold loan, there are a few criteria and the requirements divided by the loan providers, and on the satisfaction of which is made by the applicant, the loan will be approved in the applicant's name. There is a limit of purity in terms of the gold which the customers will bring to avail loan must be having the range between 18 to 24 carat else it will not be treated like gold for which the loan will be given. IIFL Gold Loan also offers good facilities for the customers. rate It has been seen that in most of the cases where there are people who are unable to avail personal loan while having the other option of the gold already available in the house, then there is no point in going for any other options. 

Suppose a person travels on a personal loan leaving the gold idol at the house. In that case, the interest rate can vary, as in the case of a gold loan, the rate of interest will be a little bit lower than that of the personal loan even on her winning an excellent credit score based on Gold Rate. The reason is that there is no collateral security available to which the risk of default on the non-repayment of the excess amount or the total amount will be. While on the other hand gold loan does not include these types of risk as the goal itself serves as collateral where the bank has complete freedom to resell the gold and reclaim the excess amount or make it available for auctioning and do the same.

Conclusion

Personal loans tend to get approved as fast as possible and are very much full of freedom as there is no restriction or provision to show that the loan being availed will have to be spent on that only. For the same, some papers of the documents will need to show for the inspection done by the loan providers' officials like the home loan or car loan. In the case of the documentation, there is also less involvement of the paperwork in both the types of the road, but few income proofs might be e needed to show in the case of the personal loan as the income is the only source of repayment of the loan for the bank while in case of the gold loan there is only required of the proof of address, the proof of identity and in some cases passport size photograph and the  gold ownership certificate.

Also read this: Can A Personal Loan of Rs 10 lakh obtained easily 

Gold has become important assets in Indian households. Many people in times of crisis take gold loans from various banks and non-banking financing companies(NBFCs). Gold loan is a very popular category and one of the oldest forms of loan. Gold Rate may vary from time to time. While availing gold loan one should always keep a close check on the market value of the gold. The best time to take a gold loan is when the market rate of the gold is higher as it will increase the loan amount. Gold Rate impacts the loan amount so it should be monitored carefully before taking out the gold loan. 

IIFL Gold Loan gold loan can be availed easily from the nearest branch or the online website of the bank. IIFL gold loans can be availed and approved easily with the required proper documentation. The loan amount for a gold loan may start from as low as Rs.3,000. The IIFL gold loan offers tenure up to 24 months. The interest rate on the gold loan starts from 12%. It also offers a very flexible repayment option as per the convenience of the borrower. 

Gold loans can be really beneficial for business purposes. Gold requires just minimal documentation and it can be the best option in times of financing crunches. Gold loan for businesses can be a really good option and is a really smart idea. Gold loans can be beneficial in businesses in more than one way. The reasons are listed below:- 

• Fast approval and disbursal - Gold loan can be processed and funded very easily in a short amount of time and it is very much advantageous to take a gold loan in times of financial difficulties and also while starting a business. The gold loan can be taken up to 20 lakhs or more depending on the bank which is very beneficial for businesses. It can be approved and disbursed within 30 minutes of the application.
  
  
• Facilities to check loan eligibility - one can check the loan eligibility online without wasting much of the time. The loan can be provided on the basis of the amount of gold ornaments given and its purity which must be at least 18 carats. You can also evaluate your loan amount with a gold loan calculator.
  
  
• Several repayment options - One can choose the repayment option as per the convenience as lenders provide different options for repayment.
  
  
• High loan to value - loan to value against gold is quite high and very good for the borrower. For businesses it is ideal as the loan to value is quite good. Depending upon the purity of the gold and weight of the gold you can be offered a good amount of loan which. And be very much beneficial for the business.
  
  
• Minimal documentation - The best thing about getting a gold loan is that it requires very minimal documents like identity proof, residence proof, age proof, salary slip, income tax proof, employment proof, credit score and more as asked by the bank. 

_{Conclusion :-}

Gold loan in today's time is one the most convenient option. Everyone prefers to get gold loans in times of difficulties. In India, gold loan is not only popular in urban areas but also in rural areas. People from rural as well as urban areas consider taking a gold loan in times of difficulty. The gold loan can be used for a variety of purposes as per the convenience of the borrower without any restrictions. One can get a gold loan from any banks or non-banking financing companies(NBFCs). Getting a gold loan is not a big deal as it can be availed easily.

Read More:- Four Gold Loan Eligibilities That Serve As An Advantage