Blog #YesBankgoldloan

The demand for this gold jewelry was a little bit high last year due to the Covid-19 situation. The domestic jewelry as well as gold every consumer demand is dependent on the specific budget and due to the lockdown, the overall reduction has also been seen in disposable income. In a little bit long-term, experts also believe that demand for gold jewelry will be supported by the rise in some of the savings due to postponement of purchases as well as cancellation of travel plans among some of the reasons. However, it remains to be seen whether such types of savings would add to the jewelry demand.

As the scale of this pandemic, as well as the potential economic impact, started to emerge, investors are looking for very safe-haven assets as well as investment in gold seems to have emerged largely due to economic scenarios across the world. During the lockdown, one can very simply invest in the gold digital. Small to big business owners are applying for the best gold loans or selling their gold. But to simply apply for the gold loan, people should have some of the basic knowledge about every type of facility all the bank offers related to this loan.

As the demand for these loans is increasing. Some of the banks are issuing new policies to the\ customers. Gold loan per gram rate is also less and this bank people like to loan because of their rate and procedure. So you always need to study some of the basic factors before applying for a gold loan. Apply at the best bank which is simply offering you a very less interest rate like this. That is how you can very easily save a lot on the gold loan. When you avail loan very minimum documentation is asked by these banks. The basic types of documents having KYC are very enough for these banks to sanction the gold loan. Because every one of the borrowers simply pledges their gold as the collateral.

Though some of the basic documentation lists can vary from different banks. Gold loans always take very little time to get sanctioned. Gold loans can simply get sanctioned in a few minutes. Gold loans always get approved within less time of applying and can simply be disbursed within hours. To have a gold loan approved within the time you always need to submit some of the basic documents according to the given list as well as need to fulfill every type of basic eligibility criteria. Gold loans simply get approved very quickly in comparison to different loans.

Whenever you apply for gold loans a person has to pay very less processing fees and some of the banks do not charge any types of processing fees and repayment can be calculated using Gold loan calculator. This is the very best advantage of the gold loan as almost in all the loans. Due to the increasing very huge demand for gold loans. Banks simply made the process to apply for the gold loans for every customer. This means if you are anywhere the rate will be low like if you live in Chennai then first check the gold rate in Chennai then simply apply.

Conclusion
Every person is simply eligible for the gold loan. Yes Bank gold loan are also becoming more preferable to loans. Some are simply taking the best gold loans to set back their business. This means there is no restriction of using the gold loan; it depends on you how and when you are using a gold loan but one thing you always need to keep in mind before you avail the gold loan is always trying to repay your loan in time. And always try to choose some of the best bank accounting for you like Yes Bank is the best choice for you.

Also Read:- Five Banks That Charge The Lowest Rates On Gold Loans Starting From 7% 

Gold loans are secured loans that are issued against collateral and come with quite a low rate of interest that is very attractive. There are many benefits of gold loans such as:

• Eligibility criteria: In case of gold loans, eligibility criteria is important in quite a few areas such as age which should be between 18 years to 75 years, then the profession of the applicant is also very important criteria for the gold loan, credit score is not that important when it comes to applying for a loan due to it being a secured loan.
  
  
• Rate of interest: Rate of interest is the factor that makes borrowers choose gold loans over other types of loans because gold loans require a low rate of interest. The rate of interest under gold loans range between 9.24%-26% and can vary according to different banks that apply for the gold loans. Usually the amount of the loan is given on the basis of the gold rate today. And banks and lenders only offer up to 90% of the total value of gold during that point of time, in the market.
  
  
• Processing fees: This is the charge paid by the borrower to the lender for the time between the submission of the loan application and the bank’s approval of the application, this is the fees that lenders charge for checking the application and documents with it. Now, these fees depend on different banks and can vary from bank to bank. Some might charge a processing fee as low as 1%-2% while others might charge it in the form of a particular percentage on the whole amount of the gold loan.
  
  
• Repayment tenure: Every loan has a tenure which is kind of an expiry date and within that tenure the borrower is liable to repay the principal amount along with the monthly installments. Now, since gold loans are short term loans they can be repaid within a time period of one year. And one can check their monthly installments through the EMI calculator which is provided on the website of every bank so that they can calculate their suitability of being able to pay back the principal amount along with the monthly installments within the stipulated time.
  
  

Now, these are some of the benefits that gold loan offers over any other type of loan and gold loans can be used for any purpose unlike home loans etc. which must be used for the work they are available for. These are some of the reasons why borrowers' first choice is a gold loan and not any other type of loan.

Now, there are many banks and lenders in the markets that offer you a gold loan but not every bank and lender is trustworthy with your gold pledged with them. So, one should make sure that they should take a gold loan from a trusted bank only. And Yes Bank Gold Loan is the solution to this as they offer loan with minimum documents some of which are Identity proof, that includes, PAN card, driving licence, voter ID, Valid passport etc., Address proof, that includes, electricity bills, water bills, telephone bills, Aadhar card, PAN card, driving licence, voter ID, Valid passport etc., Other necessary documents such as passport size photographs, proof of 5 years of business continuity (for self employed individuals) etc. One should always make sure to carry the original copy of the documents along with photocopied documents so that the process can be done without any delay or mistakes. They also provide flexible tenure and low rates of interest with attractive offers. In addition, your gold is safe as they are a trusted bank which has provided services of loans for years.

Also Read:- Gold loan for unemployed 

Gold loans give borrowers a number of options for short-term business capital needs, as well as easy access to banks and non-bank financial companies (NBFCs) that operate in and around the market. The fact that a loan can be obtained over the counter distinguishes it in terms of distribution, encouraging daily borrowing habits that are solely based on need or opportunity. Customers will be able to borrow and repay gold at home on the same day they take out the loan and at any moment during the loan term.

In India, gold, in particular, has a great traditional and emotional significance, hence every household keeps it safe in a bank or bank locker. Similarly, when a borrower takes out a loan with a bank or an NBFC, the storage is free, secure, and completely insured, so most borrowers don't hesitate to use it as collateral ever ready available credit line.

Due to the nationwide pandemic that has been going on for the past six months, we may witness a dramatic surge in retail lending demand. This easy loan product is preferred by borrowers such as traders who want to restart their businesses, small manufacturers/SME who want to start their businesses, the salaried class who want to clear private debts, fund education, or fulfil other lifestyle necessities, and so on. A gold loan looks to be a reasonable option for addressing immediate credit demands in the current circumstances, where all banks and NBFCs have ceased lending due to elevated risk assessments in the epidemic and constrained cash flows in all commercial organizations. 

This is attributed to unanticipated employment losses and decreased end-user demand for specific products or services. As a result, gold prices have risen since the pandemic began to sustain the payment periods of staff, vendors, personal or company overheads. As a result of the price and LTV ratio of the same ornaments by default, clients will acquire extra credit, driving up demand for gold loans.

With the rise in demand for gold loans, Delhi, Gujarat, Karnataka, Andhra Pradesh, and Maharashtra are the primary cities leading the way. Due to the increased demand for gold loans, major states such as Delhi, Gujarat, Karnataka, Maharashtra, and Andhra Pradesh are leading the way. Due to various branches with better market penetration, inactive and just reopened enterprises, and a larger population within a 10-30 km radius, Hyderabad, Bengaluru, Chennai, Pune, Delhi, Rajkot, and Surat have all been key business contributors. Small towns and cities, on the other hand, contribute a greater share of the Gold loan distribution due to cyclical demands and rural catchments that fluctuate with seasonal demand and crop cycles each year.

Banks recognized the gold market and used it as a major source of investment. Many NBFCs only give gold loans. Let us take the example of Yes Bank gold loan, to explain the advantages and ease provided by banks to their customers on gold loan.

1. Regardless of your credit history or the existence of a guarantor or co-borrower, you can receive a Gold Loan from YES BANK with ease.

2. You can simply receive a Gold Loan with us in the event of an emergency by following a simple application process and providing minimum documents.

3. The loan repayment is split into two parts: interest and principal.

4. This scheme allows the principal to be paid in one lump sum at loan maturity and the interest to be paid in EMIs at regular intervals to the bank.

CONCLUSION:
 As a result, it's easy to see why gold loans have been so popular for so long. It leads to you receiving a valued sum that is typically insignificant in comparison to the loan's other stipulations. Gold loans are convenient and flexible, which benefits the customer in a variety of ways.