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HOW TO IMPROVE A TWO WHEELER LOAN ELIGIBILITY? 

If you are really in need of a two-wheeler vehicle and want to apply for a two-wheeler vehicle loan, here are the ways in which you can improve the eligibility of a two-wheeler loan: - 

1. MAINTAIN A HIGH CIBIL SCORE :-

The first and foremost thing is to maintain a high CIBIL score. It can be done by making the timely payments of the dues of credit cards, closing all the previous debts, checking the discrepancies in the report of credit and making a balance between secured and unsecured loans. By this, you can maintain a good CIBIL score. An ideal CIBIL score is around 700, which the money lenders prefer. For example, if you want to apply for an Oriental Bank of Commerce Two-Wheeler Loan, your credit score must be around 700.

2. CHOOSE A LONGER TENURE OF REPAYMENT :-

The longer the tenure of repayment, and the longer will be the time to pay off the loan EMI. Also, the rate of interest and the tenure of repayment are inversely proportional. Therefore, if you want to have lower interest rates on your monthly EMIs, you can opt for a longer loan repayment tenure.

3. OPTING FOR A JOINT LOAN-:-

By this option, we mean that if you have a co-applicant, the eligibility of the bike loan will improve. It will be because the salary or the monthly income of both the applicants will be taken into account by the moneylender. You have to make sure that the co-applicant you are choosing has a good credit score and a stable income source.

4. SHOWING ADDITIONAL INCOME SOURCES :-  

The moneylender or the bank just wants the satisfaction that the borrower will repay the loan. The additional sources of income can be mutual fund dividends or rent from any other property.

TWO WHEELER LOAN PRE-PAYMENT OPTIONS: -  Most of the banks offer the prepayment option for the loans that they provide. Prepayment means that the borrower can close the loan sooner, much before the completion of the tenure of repayment. The prepayment of the loan is done by most of the customers because it helps them to get rid of the financial burden. However, one may have to pay some pre penalty charges. A person can close the Two-Wheeler Loan in two ways mainly: - 

• OFFLINE METHOD: - Following are the steps that one needs to follow if completing he/she wants to prepay the loan via this method: -

1. Check the lock-in period- You cannot repay the loan in a lock-in period but after that.  The lock-in period can be between 3 months to 6 months
2. Call customer care- You can know about the outstanding amount due to be paid for the loan by calling customer care.
3. Prepayment charges- Some of the lenders or banks charge a prepayment penalty, so you should find out the amount and pay for it.
4. Acknowledge the email sent- Your bank or the moneylender will send you an email containing your prepayment information. You have to acknowledge the email and confirm that you will prepay your loan.
5. Payment- You can then pay the loan’s outstanding amount and the pre-closure charges by a cheque or a DD.

6. NOC Certificate- The most important thing is to collect the NOC certificate. It is proof that shows that you have prepaid your loan and are left with no dues.

• ONLINE METHOD: -  You have to follow the following steps if you want to prepay your two-wheeler loan online: - 

1.  Add/Link your bank account to your internet banking profile.
2. Now you can view your loan account ledger and can continue the transactions.
3. To make the prepayment, you have to transfer the money to your loan account. 
4. A loan account is like the other savings account, and it has an account number and an IFSC code.

However, if you are not comfortable sharing this much information about your bank account in the online method, you can follow the offline one.

Also read: Two wheeler loan charges and expenses 

There are a lot of charges, fees and penalties that are applied. Before applying for a two-wheeler loan, it's very important to know all the applied charges and what would be applied in the future. There are also charges that can be avoided, so it is important to know the basics about charges.

The charges other than the two-wheeler loan interest rate applied by the bank can be divided into three categories-

Loan-related fee- In this category, you will have to pay charges that are a part of a two-wheeler loan. These charges may differ from one bank to another. You can avoid paying a lot of loan-related charges if you are applying during peak season or festivals.

Document related fee - In this category, you will be charged for getting your documents stamped, charged and certified. The charges vary according to your need. For example: If you want to get a CIBIL report, then you'll have to pay charges for that, but if you already have a credit report, then you don't have to pay those charges. So the charges that are applied in this category are mostly avoidable.

Legal/Government fees- In this category, you will have to pay charges applied by the government. These charges are compulsory and should be paid when incurred.

Loan-related fees

Application fee- It is a non-refundable charge that is applied by the banks while applying for a loan. If you are applying for a loan, then the first step is to get the application form. To get the form, you'll have to pay a certain amount. The charge usually ranges from INR 2,500-7000.

Penal Interest rate- It is very important to pay your EMI on time. If you ever delay the payment of your EMI, then you will be charged 2% to 3% of your EMI amount as a late payment fee.

Prepayment charge: This is also known as pre-closure charges. It is applicable if you are making a prepayment in full before the loan tenure ends. The fee charged usually varies between 2% of the outstanding amount. A lot of banks like PNB two-wheeler loan and Axis bank charge 4% of the amount.

Document related fee

Stamping charges- If you want to get any legal documents signed on stamp paper, then you will have to pay charges that will depend on the actual cost.

NDC charge- If you want to get a No Due Certificate (NDC), then you will have to pay a charge ranging from 0 to 500. And in case you need a duplicate copy of your NDC, you'll also have to pay a charge that ranges between INR 100 to 500.

CIBIL report- Lenders approve your application according to your repayment history in your credit report. So it's very important to show your credit report while applying for a loan. If you want a copy of your credit report from CIBIL, then you have to pay a charge between INR 100 to 1500. This charge will differ if you are asking for a credit report from other institutions like Equifax.

Legal/Government fees

Legal fees- The legal charges are already decided by the government for each loan. So you'll have to pay an amount based on your loan amount that will be charged by your lawyer before getting ahead with the verification process. Valuation fee: The fee will be charged by the banks to get your two-wheeler vehicle inspected and valued. The charge that you'll have to pay will depend on the charges that will be incurred by the bank.

Conclusion: There are other charges that are charged while applying for a two-wheeler loan. So it's important to choose a bank that is regulated by the Reserve Bank of India because those banks are transparent about all the costs that will be incurred during the whole loan process.
Also read this: Document verification in two-wheeler loan 

The first and the formal thing that needs to be kept in mind regarding the two-wheeler loan is maximizing the loan amount. 

• Most of the time, people get afraid of availing or maximizing the loan amount, but if you take some steps properly, it will help. Purchasing a bike by availing a two-wheeler loan with the purchase of about 80%  on-road price of the two-wheeler can make one initiate flexibility to manage other financial requirements.
  
  
• From the side of the government, there are certain reforms and policies that have been implemented to provide benefits for the customers who are facing difficulty during the time of the pandemic regarding their repayment of the loans as most of the jobs have already been lost due to the outbreak of the Covid 19 and the financial conditions of the people are not good. There has been a moratorium period, including tenure of 4 years, having 12 months of interest payment and 36 months of repayment of the original principal. Still, due to the inability to pay at the proper time, extensions have been added that have increased the tenure of 36 months to that of 48 months.
  
  

• One of the most important things to be kept in mind is not avoiding too many credit options for a two-wheeler loan that is over-borrowing should not be there. If a loan is available, then it does not mean that you will have to take the loan only without checking the other types of facilities provided by the different types of loan providers of a two-wheeler loan. There is nothing positive, but only negative things are related if the matter of over-borrowing arises. The first and foremost thing which is very much bad in over borrowing is that it will not allow a person to understand that when it is happening and after a long period when it will affect your financial stability to a much extent will be understandable and will act accordingly. It might happen that without proper calculation of the EMI, there might be the possibility of cutting around the expenses from the other types of requirements and meeting up for paying the loan amount. SBI two wheeler loan have the concept of providing reminder alert to help the customers. The worst that can happen will be that it will leave you in such a situation that after meeting up most of the requirements, you will be left with nothing and does it you wish you will be unable to pay for skip the EMIs and thus hampering the credit score which is very much worse for the other loans which you will be availed in the future.
  
  

• When availing of the loan, all the details must be carefully listened to and watched and understood to execute properly as per your feasibility. The different types of hidden charges and the processing fees, if you are not noticed properly, can make it difficult to manage the other types of expenses as there might be fluctuation in the payments, which will affect the stability of the budget and thus hamper everything.
  
  

Conclusion

Due to this reason, there is always guidelines are being given by the financial institutions that proper planning and discussion should be there for the proper execution of the loan like that of some backup arrangement if some part of payments is not given at a certain point of time or the facility of loan restructuring is there or not in case of any on certain change in the job profile or the income source of the customer. To conclude, we can say that proper management of a loan will never put you down during the most crucial time.

Also read this: Things To Follow Not To Become Defaulter of Two Wheeler Loan 

Banks in India offer car loans with interest rates starting from as low as 7.25% per annum. The loan tenure offered by a majority of the Banks ranges from 1 to 8 years. The processing fees charged for the application process depend upon the Bank you apply to. A certain amount of the Car price is required to be paid by the borrower of the Loan in the form of a down payment. Few banks and financial institutions also pay the price for the Car for the borrowers fully.

Many car dealerships also provide their customers with the option to apply for a Car Loan with the help of some tie-ups with a few specific banks and financial institutions. The rate of interest offered in this case is usually higher than that which you can avail yourself of. Most Car Loans can even finance the 100% on-road price of the Car. This would have no down payment from the borrower. Certain Banks provide Car loans up to few Crores to their customers. These Loans are not specifically limited to the purchase of a new car. These can be used to pay for an Old Car as well. A high credit score can get you a lesser interest rate for your loan.

Some popular Car Loan schemes offered by India Banks and Financial institutions are -

• Bank of Baroda Car Loan
• Canara Bank Car Loan 
• Axis Bank Car Loan 
• Federal Bank Car Loan
• The State Bank of India Car Loan
• ICICI Bank Car Loan

Eligibility Criteria -

The application criteria involved for the application procedures of Car Loans are :

• The applicant should be of legal age at the time of application and below the age of 75.
• The applicant should have a net monthly income of at least INR 20,000.
• The applicant should be self-employed or salaried/employed for at least the past year from the current employer. 
• The applicant should be working for a private or government organization or self-employed.

Documents Required -

The Documents required for the application procedure of Car Loans include the following with Passport-sized photographs :

• Proof of Identity of the Applicant (Any of these: Aadhaar Card, PAN Card, Passport, Driver’s Licence, Voter ID Card of the applicant).
• Proof of Residence of the Applicant (Any of these: Aadhaar Card, Passport, Driver’s License, Utility Bills, Ration Card).
• Proof of Income ( Form 16, Salary Slips from the current employer, Bank statements of the past six organisations months, Latest Income Tax returns report).

In some cases, the Banks and financial institutions might demand certain extra documents and paperwork as per the Bank’s policies.

It is easier to avail of a Car Loan when compared with other loan options available in India. A high credit score is not required for the application process as this Loan is kind of a Secured Loan. The vehicle itself acts as a security of the Loan and can be beneficial for both the lending bank and the borrower. But, Car ownership is not provided to the borrower until the end of the Tenure of the Loan. You would also be required to pay a down payment to the car selling agency.

The key factors that can help you in estimating the monthly EMI amount include the loan amount to be borrowed, the processing fees charged, the rate of interest applicable, and the tenure of the loan. A  EMI Calculator for Car Loan can be used online to determine the monthly repayment with the help of the details mentioned earlier.

Also read this: How To Use Credit Card Safely 

Usually, to reach your location quickly, you need not depend on public transport schedules and availability, nor will you depend on it. Fortunately, if you have chosen to acquire a two-wheeler then the banks will do the rest by making it very simple for you to obtain a bike loan. When you take a world-class superbike, this burden appears larger. PNB Bank provides bike loans at totally accessible rates to make it simpler to repay a two-wheeler loan more flexibly and less concerned about purchasing the two-wheelers for your other monthly costs or the availability of cash. The frosting on the cake is the easiest and fastest procedure of documentation. 

You have the following papers available when applying for a two-wheeler loan from the PNB Bank. There are certain things to be kept handy for the document verification in a two-wheeler loan and those are Age-proof and a photo ID such as certificate of birth or leaving of school, life insurance, PAN card, passport. It would be advisable to have a valid passport, a voting id card, a driving license, or a bank statement with 3 passport sizes photographs. Let’s explore the possibilities of acquiring a loan in PNB Bank Two-wheeler loan plan with all the information to make an uncomplicated document verification. 

Once you prepare your mind for buying a two-wheeler it is very essential to remember certain things before applying for a two-wheeler loan.

The Eligibility for Two-wheeler loan
When you apply for a two-wheeler loan, you need to examine the eligibility for that loan. The borrower is highly careful and only sanctions the loan after examining the borrower's repayment capability. At the time of applying for a loan, the applicant's minimum age should be 21 years and his maximum age restriction is 65 years. For residential stability, the applicant must stay in the same residence for a minimum of one year. Applicants should be in steady one-year employment or self-employed for two years at least.

Interest rates for the loan
In debts, the interest rate has a major impact. A lower rate gives cheap EMI. Therefore, while applying for any loan, the interest rate is the main concern. They are the most suited to your profile at PNB Bank and provide a competitive two-wheeler loan interest rate. The Two-wheeler loan interest rate can be attained with a good CIBIL score and a monthly income assurance. The interest rate typically decreases as the loan term rises. Therefore, you should choose the loan's period based on the EMI, without too much financial expansion.

 Two-wheeler EMI calculator
The calculation of EMIs is also crucial since it informs you about the real interest paid during the loan duration. You might notice, on the other hand, that you pay monthly expenses as an PNB for the loan. So you will have a clear image of this part of the money that is to be separated from your monthly revenue as an PNB by your 2-wheeler EMI Calculator.

You can also buy the bike you want. However, a bike loan might alleviate these problems by reducing the financial strain and also by buying your ideal bike. By taking a bike loan you may solve these problems by reducing the financial strain and also by purchasing your ideal bike. Because of current conditions, your two-wheeler loan might be covered by insurance or accidental covers. You can also pay additional expenditures when purchasing a bike, such as accessories or alternative two-wheeler seats.

 Conclusion

Get up to 100% of the funding for your new two-wheeler, fast and easy payouts, reasonable prices, and rapid eligibility for a two-wheeler journey. Therefore, to buy a bike or scooter you should acquire a two-wheeler loan. Details may be verified with the PNB Two Wheeler Loan at an annual minimum interest rate.

Also read this: Cibil score and two-wheeler loan 

Gold is one of the top priorities of the average Indian household, and people like to keep their money in this precious metal for long periods. According to the World Gold Council (WGC), Indian households own between 22 and 25 tones of gold. The rural households account for the majority of this. Companies have been compelled to close units temporarily or retrench personnel as demand for products and services declines owing to the epidemic and the lockdown, which has lasted several weeks. For many people, the global economic recession has resulted in a loss of income and a lack of finances. As a result, individuals are turning to one of the most valuable assets to receive emergency finances to deal with the current situation. Small firms and entrepreneurs are using gold loans to relaunch their operations and bridge the financial gap, according to studies. Furthermore, because gold prices are rising, borrowers can access larger quantities through gold loans. 

• Interest Rates on Gold Loans 9.50 percent to 29.00 percent.  
• Secured Loan is the most common type of loan.   
• Time to Process: 24-48 hours.     
• Loan Amount Maximum.     
• Gold can be worth up to 90% of its face value.        
• Loan terms range from one day to nine months.

How to make use of your gold You can get a gold loan if you have an urgent need or if something unexpected happens to you, such as losing your job or your business. Convert your gold into little ornaments and borrow money against them on a short-term basis. Over the previous few months, gold prices have also risen dramatically.

• The LTV on non-agricultural loans has been enhanced from 75 percent to 90 percent by the RBI. This service will be available until March 31, 2021.
•  This will also assist banks and non-bank financial institutions in expanding their gold loan books.
• As the demand for gold loans has increased, more NBFCs have stepped in.

Features of a Gold Loan

Purpose: A Gold Rate can be used to fund a variety of needs, including educational expenses, medical emergencies, vacations, and so on.

Security: The gold that has been pledged with the bank or financial institution works as security or collateral for the loan amount.

Tenure possibilities: Tenure options might range from three months to 36 months.

Fees: Other costs and costs that may apply to a gold loan include processing costs, late payment costs/penalties for not paying interest, appraisal fees, and so on.

Advantages of a gold loan For the following reasons, gold loans are a popular financing option for satisfying short-term company needs:-

Quick Processing: Gold loans are usually disbursed within a few hours of the application being submitted. As a result, it is the most effective way to raise donations quickly. In fact, you may get a gold loan in less than 45 minutes.      

Rates are low: When compared to other loan choices, such as personal loans, the interest rate on a gold loan is lower. For example, has low interest rates on gold loans.     

Documentation is minimal: Another benefit is that you only require valid identification and proof of address.

Processing fees: These are normally quite low. While some lenders may conceal a few hidden fees that may come as a shock later, it follows a transparent process and reveals all prices. They charge a small processing fee of 1.5 percent plus GST. In addition, they impose a valuation fee of Rs 250 for loans up to Rs 1.5 lakh and Rs 500 for loans over that amount.

Flexible tenure: Muthoot Finance Gold Loan come with a variety of repayment options, ranging from six to 24 months. Depending on your financial status and company objectives, you can choose the payback period and alternative. Statement/ Recommendation Gold loans are the easiest sources to tap into right now if you're seeking for a strategy to get quick cash to get you through the current cash constraint. Apply for a Gold Loan today and take care of your business, unforeseen costs, and bill payments on your own.

Also read this: Benefits Of Gold Loan 

Personal Loans can prove to be extremely beneficial in fulfilling the needs of the borrower. These loans can be used for several purposes and the application process is also very easy. These loans are unsecured and thus offer a lot of benefits and require very little paperwork and documentation. Keeping in mind the unsecured nature of these loans, the banks and financial institutions charge a high rate of interest on loan amounts from the borrower.

Personal loans can be availed by people both by online and offline mode. The time duration for the processing of the loan application can take up to around 14-21 days. Online applications can take a lot less time than that. In general, the interest charged by banks and various financial institutions charges a rate of interest starting from 8.95% per annum. The applicants can apply for a loan amount up to INR 50 Lakhs based on certain criteria. The loan tenure offered by banks can go up to 7 years. Processing fees for the application process generally range from 0 to 3% of the loan amount plus the applicable GST.

The application status of Personal Loans can be checked via both online and offline modes. This enables the applicant in getting updates about the application status. Personal Loans have become quite popular among the people of India in the past few years. These loans can be used for the personal needs of a person like wedding ceremonies, home renovations, business investment, education, etc.  

Eligibility Criteria

To be eligible for a Personal Loan, the following requirements is needed to be fulfilled by the applicant:

• If salaried, the applicant should be above 21 years of age and below 60 years. In the case of self-employed applicants, the applicant should be at least 22 years old and below the age of 55.
  
  
• The net monthly income of a salaried applicant should be INR 15 thousand and the net income for self-employed applicants should be INR 25 thousand.
  
  
• The CIBIL score of the applicant should be at least 750
  
  

The application process involved for Personal Loans is quite simple and easy and does not require a lot of effort from the borrower. The Banks do not demand any asset from the borrower as security and hence the Paperwork and documentation involved in the process are very less when compared with other loan policies. This is why many people prefer Personal Loans over other Loan policies due to the benefits that personal loans offer.

Document Required

The following documents are required for the application procedure of 

Personal Loans:

• Proof of identity of the applicant
• Passport-sized photographs of the applicant
• Proof of Residence of the applicant
• Proof of income of the applicant
  
  

No security is required for the application procedures of these loans unlike Home Loans, Car Loans, Gold Loans, etc. 

Multiple repayment options are also available for the borrower to repay the loan amount. Online payment is also accepted by several banks and financial institutions. An online Personal loan emi calculator can be used to make an estimate about the monthly EMI that needs to be rapid to the bank. These calculators require details like the loan amount, rate of interest, and the tenure of the loan.

Some of the popular Personal Loan schemes offered by Banks and other financial institutions in India are:

• State Bank of India Personal Loan
• ICICI Bank Personal Loan
• Bank of India Personal Loan
• Bank of Baroda Personal Loan
• Axis Bank Personal Loan
• TATA Capital Personal Loan
• Fullerton India Personal Loan

The very fact that personal loans do not require any asset from the borrower as security makes it a pretty good option for borrowing money from the lending organizations. These have been used by many customers of banks and financial institutions at times of need. The amount borrowed can even be used for medical emergencies and hence have saved several lives in the past.

 Also read this: Gold Loan Vs Personal Loan 

Companies that are in demand of capital generally look out for two options: Debt Finance and Equity Finance. Most of the time, the choice depends upon the source of funding readily available for access by the company. Debt finance refers to the act of borrowing money, while Equity finance refers to the act of selling certain portions of the equity to raise capital. Equity finance’s main advantage over Debt finance is that there is no requirement to pay back the amount in equity finance. In addition, equity finance does not cause any obligations and hurdles for the company. The main advantage of Debt financing is that the owner of the company does not lose ownership of the company in any way possible.

Equity Finance:

Equity finance is a way to raise capital for a company by selling a portion of the company’s equity. The ownership can be distributed among individuals as per the decision of the Business owner. There is no requirement for the Business owner to pay anyone any amount of money. The equity distributed among individuals generate dividend for them based on the performance of the company. Companies usually try to provide an excellent return to the investors to maintain a good image among the masses.

The disadvantage of Equity financing is that the business owner would be required to buy every equity share of the company to achieve the complete ownerships of the company once again. It can be expensive if the share prices go high due to the performance of the company. This is a very major issue that a lot of companies have faced in the past. This can prove to be a major loss for the business owner in case the business fails due to any reason. 

Debt Finance:

Debt Finance is borrowing money and repaying it with a certain amount of return based on the accepted condition between the lending and the borrowing party. In some cases, debt financing can limit a company’s actions for certain fields. There are numerous advantages of Debt financing. Debt finance’s most significant advantage is that the lender does not have ownership over the borrower’s business. Once the borrowed amount is paid back, the relationship between the lender and the borrower ends. In addition, the interest charged on Debt finance options is usually Tax deductively, which can be considered to be a huge advantage for the business owners. 

Debt finance’s disadvantage is that it requires the borrower to pay back the loan amount regularly as per the lending institution’s policies. In addition, in the majority of the cases, the lending body requires the applicant of the loans to provide some kind of security which can be an asset that the business owner owns. Therefore, if a person chooses the Debt finance option, the monthly expenses would be increased for him/her.

The requirements for the application process of Debt Finance options include the following:

1) Evidence/proof of identity of the applicant.

2) Proof of residence of the applicant.

3) Age Proof of the Applicant.

4) Documents related to the Business the applicant owns.

5) Bank Details of the applicant like account number, IFSC code, etc.

However, an online loan calculator can be used to estimate the amount required to be repaid during the loan tenure. The requirements to use a loan calculator are the rate of interest, loan amount, and the tenure of the loan. Therefore, these loan calculators can be very helpful for estimations of the repayment amount.  

It is advised for you to raise capital with a mix of equity and debt finance. Most companies follow this method to sustain themselves for a long time. If your company has just started, it would be advised to go for Equity fundings as the monthly repayment burden would significantly reduce. There are several available resources in online and offline mode that can help you further understand the working of Debt financing and equity financing. 

Also read this: Banks' role in different types of loans 

You are guaranteed full client pleasure when it comes to receiving a gold loan from SBI. offers full simplicity together with an excellent experience, thanks to timely disbursements and reasonable interest rates. Many individuals are searching for gold lending providers since we have the country's largest gold loan portfolio.

How may the lower rates of gold loans be achieved?

Offering special :

Check current deals and interest rates given by different banks on a regular basis.

Loan type received:

You might also be obliged to pay a high-interest rate if you want to use an overdraft facility against gold.

Value ratio credit:

In addition, the bigger the value loan, the greater the charged interest rate. In accordance with the current RBI circular, banks can lend up to 90% of gold as loans to gold borrower loans.

Holder of the bank's existing account:

Gold loans are sometimes supplied to the current bank clients at a reasonable interest rate. If an existing savings account, FD, or loan account is available.

For different loans, compare bank offers:

Banks often give a lower rate of interest for higher loans, and vice versa. In addition, NBFC's interest rate is usually higher because they provide a flexible and speedy service to small loan amounts.

Interest rate types for gold loans:

The interest rates for gold loans vary from loan to loan. The computation of the gold loan, however, often relies on two rate categories, as listed:

Purpose of Lending:

Financial loans Gold loan interest rate is also depending on lending purposes. Banks normally give reduced interest rates on agricultural gold loans issued to farmers and farmers to pay their farm costs.

Interest fixed rate:

The interest rate imposed on the amount of the loan remains stable for the whole loan period. Therefore, the EMI Gold loan remains the same for the whole payback term.

Interest floating rate:

The borrowing rate for Gold is not set and fluctuating. In this instance, the interest rate is tied to external benchmarks that the creditor receives, like the RLLR or the Prime Lending Rate (PLR). Thus, with market conditions, interest rates continue to change. Also, the EMI on the Gold Loan may increase or decline abruptly because the rate has not been fixed.

Gold loans for agriculture:

These are loans to farmers and farmers against gold ornamental products to give them financing for crop production expenditures and to invest in agriculture or related farming. Such loans are key characteristics:

• Proof of agriculture is necessary for the form of evidence of land records.
• The borrower must provide a written undertaking for which the loan is intended to be used. Banks can also monitor how such loans are finalized.
• Loans granted for agriculture are classified as priority sector loans and are eligible for government interest subsidy schemes, which decrease borrower's interest costs.
• In general, these loans are permitted for up to 3 years.
• Some banks offer overdraft facilities with regard to these loans.
• The interest rate for agricultural gold loans is between 8.00% and 10.00%.

Gold Loans from Non-Farmers:

Loans covering all the other borrower’s groups except farmers and farmers are referred to as non-farming gold loans. These loans are open to all people including employed, self-employed professionals, entrepreneurs, women, women, homemakers, students, pensioners who own the same gold and wish to make the same promise to obtain a loan. The characteristics of non-agricultural gold loans were described by repayment possibilities under the lending programs.

Charges for Gold Loan:

Processing costs for gold loans :

Most banks charge up to 1 percent loan amount to minimal processing charges. There may possibly be lesser costs available from some banks. To receive the lowest cost, you may compare your gold credit interest rates, deals, and cashback using SBI gold loan.

Prepaid and forfeiture Gold Loan :

It is called half prepaid if you desire to reimburse your debt slightly before time. If you opt to pay the whole amount of your debt in advance, it is termed foreclosure. In these cases, banks often demand advance payments or foreclosure costs, which may vary from 0 to 1%. Check carefully, therefore, whether your low-interest gold loan includes substantial prepayment or foreclosure costs. There are also lock-in times that can be reimbursed before some gold rate loans are made.

Also read this: Gold Loan In Covid-19 Situation 

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: Personal Loan Uses 

Gold loan is a very common option amongst individuals to avail cash instantly, as it is habitual for Indian individuals to keep gold in their house. It is a tradition that have  been followed for ages. This allows them to use gold in emergencies. Gold can be used by individuals as collateral to avail funds for diverse needs.

One of the situations, where an individual may need to choose the option of availing a gold loan from a bank or other financial institutions is in the case of a medical emergency. If there is a sudden medical emergency, savings and a medical cover might not be enough to cover the all the bills such as medicines, tests,  and hospitalization. In such a situation, a gold loan is a very viable option and it could help in paying for a life-saving situation.

There are several benefits of procuring a gold loan -

1. Instant disbursal - In a medical emergency, there an urgent need for money, a gold loan would be the most suitable option in that situation. The process of loan application and submission of documents can be done online. After the bank or the financial institutions completes their verification process of the documents and value of gold, disbursal of loan is done in 24-48 hours.
   
   
2. High Loan to Value - The loan amount, in a Gold loan, is sanctioned at a specific percentage value of the gold, which is determined b factors such as purity, weightage, market value. Banks and financial institutions provide a loan to value ratio of up to 75%, which can be very useful for an individual in a medical emergency to pay the bills.
   
   
3. Flexible repayment structure - Banks and other financial institutions provide several options to individuals for repaying their gold loans. The individual has the option of repaying the loan through equated monthly installments (EMIs),  advance interest payment - where the interest is paid in advance and principal amount at the end of the loan tenure, interest payment at regular intervals - where the interest is paid at regular intervals and principal amount at the end of the loan tenure and bullet payment - where the principal amount and the interest charged on it is paid together at the tenure end. These options are beneficial in a medical emergency as the borrower does not have to worry about defaulting in payment or being levied a penalty.
   
   
4. Simple Criteria - Unlike other loans, the gold loan does not consider factors such as income, debt history, employment stability, and loan repayment capacity which are considered in other loans. In a gold loan, the loan is sanctioned against the gold of the borrower. Even a person with a low credit score and avail of a gold loan. The process also requires minimum documentation such as proof of identity, proof of residence, etc. Even proof of income is not needed. This is again very beneficial for a borrower in medical urgency as they do not have to worry about difficult criterion or any extensive paperwork. Online facilities provided by institutions such as Muthoot Finance Gold Loan make these processes very convenient for the borrowers.
   
   

The process to avail a gold loan - 

1. Gold loan application
    
2. Submission of gold
   
   
3. Gold evaluation
   
   
4. Collection and verification of documents
   
   
5. Disbursal of Loan

Eligibility Criteria for a gold loan

1. Any individual who possesses gold can apply for a gold loan, regardless of their employment status or type of work.
   
   
2. To apply for a gold loan the individual should be 21 years and above, the maximum age limit differs in every bank and financial institution.
   
   
3. The applicant should have all the required documents.
   
   

Thus, because of the simple nature of a gold loan and the various benefits attached to it, gold loans can be a very useful option in medical emergencies.

Also read this: How to manage gold loan EMI’s? 

FACTORS AFFECTING TWO-WHEELER LOAN-

The following features affect the Bank of Baroda two-wheeler loan -

INTEREST RATE- The first and the foremost important factor is the rate of interest. When a person takes a two-wheeler vehicle loan from the bank, he has to repay the amount of the loan to the bank and that too with interest. Different banks and money lenders offer different interest rates and different schemes. The interest rate mainly determines that if that particular. loan is suitable for you or not. This is because when you repay the loan, it would be with the rate of interest. You can check the amount of EMIs that you will need to pay every month with the help of a Two Wheeler Loan EMI Calculator.

TENURE OF REPAYMENT- Second comes the tenure of repayment. The tenure of the repayment of a two-wheeler vehicle loan or any other loan is inversely proportional to the interest rate. It means if the tenure of the repayment of the loan is longer, then the rate of interest will be lower, which in turn means that the amount of EMI will be lesser.

COST OF VEHICLE- Thirdly comes the cost of the two-wheeler vehicle, which you want to buy. The bank will verify the vehicle, and after that, the bank will sanction your loan. The loan amount will be decided by the cost of the two-wheeler vehicle that you wish to purchase.

CREDIT SCORE- Fourthly comes the credit score. A credit score affects the acceptability of your loan. A credit score tells about your credit history, when you have taken up the loans, and how you have cleared your debts. If you have completed all your EMIs on time and paid all the debts, then your credit score will be good. An ideal credit score is said to be around 700.

ELIGIBILITY- Fifthly comes the eligibility criteria. You can apply for a loan if you fulfil the eligibility criteria of that loan. It means that you have to agree to certain terms laid down by the bank or the moneylender. Also, different banks, money lenders and financial institutions have different criteria of eligibility.

DOCUMENTS- The last one are the documents. You need to have the basic documents required to apply for a loan like identity proof, address proof, income proof, etc. Aadhar Card, passport, driving license, Voter ID, utility bills, Ration card, Form-16, ITR, Bank statements of last six months, Payslips etc., are required for verification.

TWO WHEELER LOAN BENEFITS IN PANDEMIC- The pandemic of coronavirus and its lockdown have caused financial problems to each person living in the country, whether rich or poor. Everybody has faced financial loss in the country. Therefore, in these critical times, if one thinks of getting a two-wheeler vehicle for one's needs, the option of taking a two-wheeler vehicle loan can be considered. It can help you in purchasing a vehicle that you desire, and you can repay the amount of the loan in the form of equated monthly instalments. These monthly equated instalments or the EMIs are the instalments that you have to pay every month after getting your loan. Also, the interest rates on a two-wheeler vehicle loan are lower as compared to the other loans. Bank Of Baroda also offers lower interest rates. Therefore, you will not have to take tension about the payment of the EMIs and can quickly pay the instalments every month while managing the other expenses. So, if you will buy a new two-wheeler with the help of a two-wheeler vehicle loan, you will be able to get the two-wheeler you desire with monthly instalments. The best deal is this because you can repay in low EMIs, and the loan will prove beneficial to you instead of being a burden. Therefore, if you are thinking of buying a new two-wheeler or even a second-hand bike or s cooter, you can avail of a two-wheeler vehicle loan and estimate the repayment using a two-wheeler loan EMI calculator.

Also read this: IMPACT OF A TWO-WHEELER LOAN