Blog #Oriental Bank of Commerce 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? 

WHAT IS A GOLD LOAN ?

A gold loan is a form of secured loan that requires little paperwork and enables banks and financial institutions to approve loans quickly without having to check the borrower's creditworthiness. After you've done that, you'll need to weigh your choices and choose the one that best suits your credibility.

The yellow metal is becoming more costly and a heavy source of investment as gold prices rise in the market. People usually purchase ornaments for future use, but if you have idle gold on hand, you can get immediate cash. People are spending more money on gold bars and biscuits these days in the hopes of making a profit later on. As a result of the rise in interest rates and sudden increase in the price of gold, financial institutions have discovered that gold can be used as a great source of investment, using it as a weapon on which even mortgages can be applied. It is, however, more valuable than a personal loan because you can be certain of obtaining a substantial loan amount. As a result, gold loans have become increasingly common in recent years, with banks and other financial institutions offering low-interest gold loans.

You can't say no to an amount that might be worth a lot of money if you have anything to offer. As a result, some thought will be given to whether or not a gold loan is a viable option for us.

Simple Procedure and Fast Disbursal :-

The advantage of a gold loan is that it has less red tape and offers more options. Even though the procedure for obtaining a gold loan is very easy, it only takes fifteen to twenty minutes to complete. This loan is an excellent option for arranging liquid cash for a borrower without putting the borrower's patience to the test. 

The Value Of The Product Never Diminish :-

Being a guaranteed loan helps both the borrower and the lender since the value of gold never depreciates. While its value fluctuates, the market price of gold still increases. Gold is a liquid product with low transaction costs, similar to lands and cash. This gives the lender a level of protection that isn't available in other types of loans. In the meantime, the lender is under no obligation to pursue the borrower for timely loan repayment. 

Larger Loan Amount :-

Eligibility for a gold loan determines the duration of the loan. Simply put, it means that you can borrow money depending on the amount and quality of gold you own. The maximum gold loan amount that banks and financial institutions can give varies depending on their gold loan policies.

Lower Interest Rates :-

Gold loan rates are lower than personal loan rates because the lender takes on less risk by lending money dependent on collateral or insurance. The annual interest rate on gold loans is usually between 12 and 15 percent. You should know the gold rates offered by the bank. For example, if you stay in Delhi the gold rate in Delhi by several will differ and you need to find out who gives the best deal to you. 

Flexibility in Repayment :-

A gold loan can be repaid in a number of different ways. You may pay in equalized amount installments (EMI) or make a single payment at the end of the term using a Gold Loan Calculator. Some NBCs and private finance institutions deduct interest before disbursing loan funds, while others do not. No requirement of guarantee: Gold is regarded as a source of protection by banks and other institutions that lend money on its behalf. There is no requirement that you have a guarantor to ensure that your payments are made. The gold assures the lender that if you do not repay the loan on time, the lender will be able to pursue you in court.

Conclusion :-

You look for the best offers for you, and you can find them. For instance, Oriental Bank Of Commerce Gold Loan charges a 7 percent (MCLR+0.25 percent) interest rate on a gold loan. To avoid getting into trouble, it's critical to evaluate your safety. Gold loans, on the other hand, are now the most common and stable form of a loan. As a consequence, we can conclude that obtaining a gold loan is always an option.

Must Read:- Why a person with bad credit score can obtain a Gold Loan 

Gold has been in existence since the dawn of time. And the usage of it has only grown more so in India than in any other country. It has become part of our day to day life increasing its value and requirement over time. The immense usage of gold then led to the invention of loan against gold and its high demand. A gold loan is a secured loan provided against the customer’s legal gold ornament or article. The loan is granted for a certain period on the agreement that the borrower pays the principal with interest on or before the end of the loan term. Gold loans are common in all classes of society primarily because of their abundance of advantages. As the production of gold articles and other forms increased, the purchase of gold became higher and higher, making it all the more for the people to use it as collateral instead of immobile properties or high-interest unsecured loans. The banks and financial institutes ensure that the gold asset received is protected and in good care. Therefore the gold is even safer in the bank’s or NBFCs vault than in-home lockers. Plus, the money sanction on the gold loan is much higher than many other loans. The interest rate is low, and the tenure is short, making it all the more attractive. Gold loan Calculators on the bank’s official website or NBFC can be used to know more about interest rates, tenure, and principal amount depending on the weight and purity of the gold asset.

The increase in demand for gold loans is significant because of its requirement of minimum documents and no income proof. To avail of a gold loan, the documents required are ID proof(PAN card, Voter id, Aadhar card, driving license, passport, or any other valid proof of id), two photocopies of the applicant and proof of agricultural land if the applicant is a farmer. Farmers are applicable for lower interest rates than usual in gold loans. Income proof is not required for a gold loan. Therefore you can take out this loan even if you are unemployed or a homemaker or facing difficulties in having a permanent job. A gold loan also doesn’t need a credit score. A credit report by the company CIBIL contains personal, banking, professional information in addition to past credits(loan or debts) of individuals, societies, companies, corporations and/or other banking customers. The report is summarized by credit score or CIBIL, which varies mainly from 300 to 900 and is extremely important for taking out most loans as it depicts the borrower’s repayment capability. But for a gold loan, it is unnecessary as it is secured. Due to the above reasons, the processing of the gold loan is easy and doesn’t take much time to get money from the lender. This makes a gold loan convenient and the first choice among other loans. Unlike other loans with only one repayment option as Equated Monthly Instalments(EMI), the gold loan also has bullet scheme payment and partial payment methods to repay interest amount and principal. The bullet scheme payment is where you as a borrower pay the total interest amount and loan amount at once at the end of tenure. In the Partial payment method, you pay a partial amount of the principal amount and interest whenever you wish before the term ends. This scheme is available only in banks and NBFCs.in the regular interest payments; you pay the interest amount each month till the end of tenure and the principal amount at the time of maturity. This is the most famously used method of payment or reimbursement. The payments can be done either via net banking or through cheque or cash. Automated detection is also available, where the lender automatically deducts the interest and principal when the time comes from the borrower’s savings account. But there must be enough funds to do so, and the borrower has to opt for this type of payment personally. Oriental bank of commerce gold loan provides online and offline services with the best offers in the market.  

Read More:- A gold credit utilized for Dire Needs