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
