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The lender always goes for the gold purity check and measures the weight on the idea of which it evaluates its market price. Gold loans are often sanctioned up to 80 per cent of the calculated value of the pledged gold. Once the worth of the pledged gold is evaluated, the documents are verified. If everything is proper and promising to your bank or lender, they will approve the gold loan.

Nowadays, anyone can apply for a gold loan through online the bank's or lender's portal application or official website. But applying for a gold loan online doesn't mean that you simply won't need to visit your lender. To avail the power of the web gold loan, you'll need to visit your lender a minimum of once to deposit your gold articles. Once this is often done, you'll register yourself at the lender's customer portal or mobile application and link your checking account with it. So in future, whenever you're in need of money urgently, you'll apply for a gold loan and obtain the available credit disbursed in your checking account anytime, anywhere, in only a couple of minutes.

Alternatively, you'll also apply for a gold loan at the nearest branch. It's a web platform where you'll check your gold loan eligibility, compare gold loan schemes offered by different banks and NBFCs and obtain loan approvals quickly.

What are the benefits of the gold loan ?

Quick process :

Gold loans are the secured loans, and it wants usual eligibility criteria and nonminimal documentation; it doesn't even require a credit score for loan approvals. And thus, lenders generally disburse the loan in only a couple of hours. People that are eligible for a web gold loan can even get the loan amount in only a couple of minutes.

Lower rate of interest : 

As compared to an unsecured loan like a personal loan, gold loans, which may be a secured loan, charge a lower gold loan interest rate. Also, if the applicant wants to use another asset as the mortgage, the gold loan rate of interest is often decreased further.

Processing fee not required :

There are many lenders who do not require processing fees on gold loans; sometimes, a lender may charge processing fees, it's usually 1-2%.

No need of foreclosure charge :

Some lenders don't want pre-payment charges, while a number of the banks do charge a pre-payment penalty of 1%.

Earning proof isn't needed :

Banks or Lenders usually don't want income proof to proceed with gold loans because the gold loan is secured; gold is act as a security. That's why everyone can apply for a gold loan; how much they are earning does not affect to apply.

The credit score isn't required : 

Unlike most loans, gold authorization doesn't depend upon your credit score. Just in the case of other loans, the loan amount is given on the idea of the repayment capacity and credit history of the borrower, but within the gold loan, the loan amount is set on the market price of gold.

What is the gold loan advantage ?

LTV (Loan to Value) Ratio : 

For a gold loan, you will get a particular percentage of the market price of the pledged gold because of the loan amount. The loan amount is set on the idea of the LTV ratio. The ratio varies from lender to lender, and it goes up to 70% of the worth of the pledged gold. This suggests that if the market price of your gold is Rs. 5 lakhs, you'll get a maximum of Rs. 4 lakhs.

Due to loan default, you'll lose your gold : 

just in case of gold loan default; lenders have the right to freeze your assets and auction it to urge the outstanding gold loan amount.

Always check for the gold loan EMI calculator on the lender's website. It is helpful for the applicant to know how much they have to pay the total gold loan amount.

Must Read- Gold Loan Short Term Uses 

What is Gold Loan?

A gold loan is a loan acquired by keeping one’s gold valuables mortgage towards banks or NBFCs on the value of gold weighs as Gold Loan Per Gram. This loan is a short term secured loan involving collateral. Since 1991, bank and Non-banking Financial Institutions(NBFCs) have started lending loan on gold with less incurred interest rates. This is the only loan that can get approved in less duration of time.

Eligibility Parameters of Gold Loan: There are specific parameters specified by the lending institutions or banks which one has to abide by for availing this loan:

1. The creditor must be of legal age while submitting a loan application.

2. The creditor must be an Indian citizen.

3. A CIBIL Score of 700 or above is requested.

4. The mortgage gold should weigh above 18 carats to avail loan.

The creditor can check his/her eligibility for a loan using the eligibility calculator.

Gold Loan Schemes: There are multiple schemes given to the creditor to avail loan according to their purpose such as:

Gold Loan for Agricultural purposes: This loan can only be availed by farmers or agricultural laborer's against submitting proof of farming land. These loan purposes should be restricted to farming-related activities only. The repayment is due after the yield of crops in this loan scheme.

Gold Loan for Non-agricultural purposes: This loan can be acquired by salaried individuals, businesspeople, homemakers, self-employed individuals, traders, etc., for the purposes like wedding, home construction or renovation, travel purposes, funding education, medical emergencies or financial crisis.

Application Process: The application for a gold loan can be submitted online through the official website of ICICI or app and offline modes by visiting the nearest ICICI bank branch. The offline method is relatively better than online as there are fewer chances of error. Any wrong transactions can lead to financial loss or discrepancy. In offline, one has to visit the bank to complete the application process with required documents and thus has fewer chances of discrepancy. The bank representative will guides you through the whole loan process and solve any queries relating to it. An appointment is scheduled for gold’s purity test, and if you have mortgage gold with you, it is scheduled at that instant after completing the document verification process.

Document Verification Process: The creditor has to submit proof of genuineness where the banks request only KYC documents and two photographs. An identity proof where Aadhar card, Driving license, Voter ID, Passport and residence proof where utility bills, Aadhar card, Passport, Ration Card, Renters agreement can be submitted. A background check is conducted by bank authorities to omit the chances of fraud or forgery.

Purity Test of Gold: The most important step on which the loan approval depends is the purity test. For this test, the creditor has to visit the bank as it is conducted only on bank premises by bank authorities. The gold is assessed for its purity, and impurities present it where its weight the composition is taken into consideration. The loan amount depends on the analysis of this test as per the loan to value ratio. This test is conducted at the scheduled time where the creditor has to come along with the gold, which must be kept as a mortgage. The loan is approved in a short while after this process.

Safety of Gold: The gold is kept mortgage towards the bank by a creditor. This gold has to be analyzed before keeping it as collateral. This gold is sealed in the bag marked with a unique application number to the creditor and stored in bank lockers. The application number is the same as mentioned in the approval letter issued to the creditor on approval of the loan. The bank lockers are present inside a vault in the bank. These vaults are guarded, and security cameras are deployed inside them. The entry inside this vault is restricted only to the bank employees. The approval letter should be kept preserve by the creditor until the end of the tenure period of the ICICI Gold Loan.
Read More:- Gold Loan in Covid-19 

Some lenders or banks pretend to the customers that availing  a car loan is an enormous task; people can not get a car loan quickly. They have to wait for a more extended period of time to get the car loan, or the process is very long; after applying this type of words, they make extra money from the customers as a gift. But this is not the right thing, and every individual has the right to get a loan; if they fulfil the criteria, they will get the loan without any so-called gift cheque. 

Nowadays understanding a person’s mind is very difficult, to gain a profit they can do anything. Nowadays, some people are so cruel that they misuse someone’s money and their emotions too. Fake lenders or fraud banks spread their trap all over the world. So first, identifying the genuine, proper lender is the main task.

 
To find out the real lender who actually helps people to get their loan is a small process. In the era of the internet, everything is next to our hand. First, type their car loan lenders and search; you will get a long list of lender’s names. Do not go for any so-called lender; check out which characters are familiar to you, then go to their sites and check the customer’s review. Customer review is the main criteria for choosing the lender; after reading all the reviews, go to the lender’s background details. The company’s actual name, from where the company belongs, when the company established, how long they are in the service, with which companies they have collaborated. After knowing everything, if you find the lender is genuine, then only go for it.

 
Checking any lender’s details is not everything to taking a car loan from them; you must meet the criteria that they offer for a car loan borrower. Usually, all lenders criteria are overall the same, no fancy anything. But some requirements also differ from one lender to another lender, some banks to another bank. Must check which lender’s criteria goes with you well.

Here we have to take one lender’s name because they are a well-known loan lender in India; the lender is HDFC bank. HDFC bank is one of the most prestigious and oldest banks in India. They have numerous products for people, not only that, their actual good thing is their customer service. They provide a good amount of service to their customers, not only in their branch even online also. They are always there to help their customers; satisfying custom’s needs is their primary motive. They always guide their customers online as well as by phone also.

The eligibility criteria of a car loan are very simple, and they do not want many more things to apply for a loan. They need only proper documentation after submitting the documents; if they find the records are correct, the applicant has not to worry about the rest of the work done by the bank. It takes hardly 10-15 minutes of the car loan approval; after the consent, the following procedure will start quickly.

 
HDFC Car Loan is one of the best sources for availing car loan, and their product is always upto the mark. The interest rate of a car loan is also proper; they always maintain the RBI’s (Reserve Bank of India) guideline, so anyone can trust them to pay them the interest rate for a car loan.Not only the interest rate, but they also do not charge anything extra for a car loan. They have no hidden charge for their product, and they always maintain the actual interest rate for every product. Before applying for the car loan, always check the HDFC car loan EMI calculator; it will give you the overall idea of how much you have to pay for the entire car loan. Apply for your car loan now.

Also Read:- What Factors To Look For While Obtaining A Car Loan  

What is car loan tenure?

Car loan tenure is the time you are going to be spending in paying back your loan. Before you jump to conclusions, let us understand the concept a little bit. Car loan tenure is the tenure you have to pay the entire amount till you can complete all the instalments. 

Before considering the car loan tenure you should know how long your loan should be. Here is a quick guide to help you choose the right loan tenure. 

How long should you pay for a car loan? 

After you take a car loan, the first question you need to ask yourself is 'how long should I pay for a car loan'. Example: A car loan with a tenure of 20 years, and the amount is for INR 1,30,000 per month. Assuming that your loan tenure for three months, you will have to pay INR 43,333. If your loan is due for six months, you will be able to pay INR 21,666. If your loan is due for nine months, you will be able to pay INR 14444. And finally, if your loan is due for 12 months, you have to pay INR 10,833. But the thing that people often forget is that you also pay the interest rate along with your loan amount. 

What are the factors which affect car loan tenure? 

The following factors can affect the car loan tenure: 

1. Your credit score. 
2. Your current monthly income. 
3. The purpose of the car loan. 
4. Your location. 
5. The kind of car you want. 
6. The condition of your credit.

What should you consider when you choose car loan tenure?

It's a dream to own a car. But when you want to buy a car and fulfil your dream of owning a car, the purchase becomes challenging. Whether you're the one who's going to take a loan or someone who's going to get the loan from a bank, you want to choose a car loan tenure that suits your needs. Once you choose the car loan tenure, you don't have to bother about the loan amounts anymore. 

Car loan tenure is important. However, one thing that you need to take into consideration while choosing a car loan tenure is the interest rate of the car loan. An interest rate of 12-18 per cent is normal for 2-3 year of tenure. But if you want to plan your car's purchase and you are looking for a car loan for 7-10 year tenure then you should choose a bank that provides a low interest rate. Because you will pay the Car Loan interest rate along with the car amount every month. So if you choose a long tenure with a high interest rate, you may end up paying more than the loan amount. 

The right car loan tenure for you:

As a car loan holder, you should be very careful about choosing the right car loan tenure. Remember, no other loan can be as harmful as a car loan. Choosing the right car loan tenure is important. So choose the loan tenure according to your repayment capacity. Always choose the loan amount as 50% of your monthly income. Some banks (like Yes Bank car loan or BOB Car Loan) usually take 60% of your monthly income as EMI. \ So if your monthly income is INR 1,00,000 then your monthly instalment shouldn’t be more than INR 60,000.

Conclusion: Thus, this article concludes that you should definitely consider a shorter car loan tenure. Now you must know that there is more to choosing the right car loan tenure. It's not only about paying the balance in your car loan but it is also important for you to get a car loan that will meet your income and budget capacity. Because if you’re unable to pay the loan amount then your car will be seized and sold off at an auction to recover the loan amount and the interest rate.

Read More:- Car Loan Demand Is High Why? 

For business car loan work as a bonus because by showing their balance sheet or sales, they can get an extra car for their business as well where a family choose to buy a single. Still, the eligibility range will remain the same for business, but your sales will define your business’s capability. Remember, when a car loan is active, the priority for business will always be EMI payments; otherwise, payment failure will lead to the seizure of the mortgage/car. It is better for the company that is starting with a car loan the first time that they purchase a single car through a car loan. This way, they will get an estimation of how they can handle the car loan EMIs.

A commercial auto loan, like a consumer auto loan, is a secured loan for a new or used light-duty car, van, or truck. The main difference is that it would be used more for commercial purposes rather than personal use. 

In the case of a business auto loan -

• It's all about the vehicle :
  
  Lenders will consider the vehicle's age and mileage when making a decision. The reason to get this much document about cars is to know how much the car will give satisfaction to their borrower as well if the borrower found some trouble he can take legal actions as well against the company. No lender wants to lose their money or credibility. For example, to avail car loan in Axis bank needs business vehicles to be less than five years old and travelled less than 75,000 miles.
  
  
• It is essential how the vehicle is used :
  
  A car must be used for commercial purposes in order to apply for a business auto loan. A potential lender might inquire about how the vehicle you want fits into your business plan. While it is understandable that small business owners’ work and personal lives may collide sometimes, but you are needed to account for the business use of a vehicle when it comes to filing your taxes.
  
  
• The seller could affect your loaning process :
   
  Some lenders will only fund a vehicle purchased from a licensed dealership rather than a private owner.
  
  
• It’s all about the customers :
  
  Some lenders require business owners to sign as guarantors even though the vehicle would be owned by the company.

Obtaining a business auto loan entails some risk on your part as a small business owner; mostly, you are betting that your company will be able to repay the loan. If the company misses payments, it may face late fees, unpaid interest and possibly repossession, all of which could damage the company’s credit. If you are a loan guarantor, it may also damage your personal credit. 

Let’s talk about how you can get a business auto loan:

1. Fix your mind on the vehicle that you want to buy. Set a budget and follow it so that you don’t find yourself looking for emergency funds.
   
   
2. Ensure that all your documents are ready as such loans include heavy paperwork.
   
   
3. Look at getting a car loan just like getting a car. Your possible lenders could be credit unions or banks.
   
   
4. Research trends of all variables like car loan Interest rates and then set your mind on an offer.
   
   
5. Finally, buy the car. Make sure to not miss any paperwork as it might create a problem later on.

Conclusion : 

Starting your own business can be an intimidating affair but with all these options available it gets easier. Finding the suitable car loan is as important as finding the right car. Hence it is advisable to gain all the possible knowledge one can or talk to someone who has experience regarding such loans. It is easy to find yourself getting cheated on so be very careful about choosing a party you can trust.

Read More:- Car Loan Documentation 

Car loans are the loans that are taken for the payment of the car which people buy. But it is not easy to pay the loan as the price is relatively high. Car loans are popular since they are convenient, but what happens if you don't pay them back on time? For obvious reasons, you do not want to default on your car loan. It will ruin your credit history and lower your credit score, and two, the bank may repossess your vehicle. There might be many reasons due to which you might not be able to pay the loan amount. This is called car loan default. This is the situation when the customer doesn't pay the EMIs for an extended period. If you cannot pay, then don't worry, there are many options available through which you can pay the money. Do not avoid the lender; tell them the reason; ignoring the loan provider might create suspicion.

There are many options available some of them are given below:

Talk to your lender/bank about extending the term of your Car loan. For example, if you had taken out a 36-month car loan, you may ask for it to be extended to 48 months. Your monthly commitment will be lowered as a result of this.

Inquire with your lender/bank about the possibility of making a deferred payment. It means you'll be able to postpone making your current month's payment until a later date. Explain to him that having a month's notice on the settlement will allow you to have the flexibility you require.

Try to persuade your lender/bank to change the payment due date permanently.

Late fees are frequently imposed on late payments. If you believe the accumulated late penalties are putting you under financial duress and preventing you from making timely payments, contact your lender/bank to waive the fees. The lender/bank may agree if it will assist you in making timely payments.

As previously stated, if payments are not made following your agreement, it is considered a default. The apparent consequence is that your car may be repossessed by the lender or bank. The lender/bank will give you a written notice of default, requesting that you pay the remaining sum on your Car Loan or face repossession, depending on your loan arrangement.

A repossessed car is frequently auctioned off to pay off your default loan balance. The auction information is well-publicized, and it is conducted in a commercially acceptable manner. Typically, the lender/bank notifies you or the defaulting client of the location and schedule of the auction so that you can bid or simply observe the sale. There are many available options if you are not able to pay the amount of loan taken.

Canara bank car loan are one of the best loan providers. They have many attractive features. The interest rate charged is very low. There are no hidden fees. The fees charged for processing are extremely low. The customer has the option of choosing the monthly instalments. The loan can be taken out for as long as 84 months. Individuals can get a car loan for both new and old vehicles. The loan is available for any type of vehicle and is not dependent on the model or manufacturer. In the case of second hand cars, the loan term can be as long as 60 months. If borrowers choose to pay off their loan before it matures, the bank will not charge them any fees. The majority of the car's value is financed by the bank. The processing fees are also less. It is 0.25% of the car loan that you have taken. Which is significantly less.

Conclusion: There are many methods to repay the car loan. It is not problem is you are facing any difficult paying the car loan. Don't give up early.

Also Read:-A Credit Card Is The Best Way To Pay Your Many Types Of Bills 

There was a sudden change in gold rates during mid-may 2020, which also marks the start of the COVID-19 lockdown in India. The gold rates fluctuate at high speed. This also encouraged India to give up their gold pieces as collateral for money, to meet their current financial needs. Due to Covid-19 a lot of people lost their jobs and had to take loans to meet their everyday needs. And a gold loan was the best option when compared to a personal loan or credit card. Because for a gold loan, the interest rate is usually low, but during the lockdown, it has decreased a lot, the application process is a lot quicker, and you only need essential minimal documents. Whereas the interest rate and application process for a personal loan are pretty high.

You can quickly get money by giving your gold as collateral to banks and Non-banking financial companies(NBFCs). But due to this pandemic, a lot of factors of the gold loan were affected, and those factors are:-

1. LTV rate :- Loan to Value rate is the rate you get when you give your gold as collateral; earlier the LTV rate was 75-80%, so if your gold rate is INR 45000 so you would only get 33,750, but now RBI has increased the LTV rate to 90% so now you’ll get 40,500 for your gold. But no bank gives a 100% LTV rate. 

2. Interest rate :- The interest rate has decreased a lot. It was 8.50% before, but some banks like Muthoot gold loan are giving loans at 7%, well a lot of banks are giving loans at 7% now, but you’ll have to do your research and compare each factor to find your perfect lender.

3. Tenure :- Due to this pandemic, the country is facing financial issues, so many people cannot pay the whole principal amount with interest, so that’s why banks have decided to increase the period to pay back the amount. Due to which banks are forced to invest more in security equipment like CCTV cameras, Biometric scanners, Strong doors and alarms.

4. Repayment :- Banks have allowed flexible payment due to this pandemic. You can pay annually, quarterly, semi-yearly or you can pay interest every month and the principal amount at the end.

Reasons to apply for a gold loan during COVID-19:-

1. Minimum documents required, and the process is quite fast.

2. It is the most secured loan when compared to a personal loan.

3.  The money is not being monitored; once you get the money, you have the flexibility to use it however you want.

4.  You are not asked for other collateral or security, but if you want to lower your interest rate, you can add any other asset for collateral.

5. The interest rate is quite low.

6. Gold loan is the perfect way to raise capital and use funds whenever you're in need for money.

Now the real question is how can you apply for a gold loan:-

1. You can request a door step evaluation for your gold. When you request this, a bank executive will visit your home to check the gold value and decide on the rate. And if you both agree with the credit amount, you can go ahead with it and provide all the minimum documents required. The money is then transferred to the customers account shortly.

2. You can visit a bank branch and have a conversation with the bank manager regarding the interest rate, repayment options, LTV rate and tenure. And if you both agree with the terms, you can move ahead with it. Customers usually get the money on the spot.

3. You can apply for a gold loan online, where the process is straightforward compared to the offline method, and then you can move ahead with it.

Also Read:- How CIBIL score gets help from Gold Loan 

COVID-19 has devastated the planet in ways we never could have imagined. It has taken and continues to take a toll on our well-being, from literally living in front of the system to surviving on take-out for every meal. A global shutdown was not on anyone's list of emergencies, even though many of us are generally prepared for a rainy day. This unexpected setback has resulted in a significant global recession. Consequently, one of the biggest and most common problems during this vicious coronavirus outbreak is financial difficulties. Breaking your savings to meet your financial commitments and unexpected expenditures is not a realistic or realistic choice right now. A Gold Loan will help you out in this situation.

Why should you opt for Gold Loan?

Gold loans are an excellent way to manage your finances, particularly during this pandemic, when loss of jobs and pay cuts are ubiquitous. Moreover, it can be paid off in simple EMIs, putting less strain on your monthly finances. Using your savings can have the opposite impact. A depleting amount with no source of income ahead can cause you mental and financial stress. Gold loans can come to bail you out in such stressful conditions. Is it prudent to dip into your investments at this moment, as your steady stream of income could be jeopardised? We believe that taking out a Gold loan and saving your hard-earned money is the best option. Gold loans are a cheaper and more logical alternative. The reasoning for this is that you could schedule the sum ahead of time and according to your preferences before applying for it.

Submitting a Gold Loan Application Amidst the Lockdown?

On a typical day, obtaining a Gold loan will necessitate 'n' number of face-to-face meetings, as well as other procedures and formalities, but the new standard is a virtual world. An environment in which you have the option of using a contactless medium to complete tasks that would otherwise necessitate physical contact. The gold loan approval process only needs a single bank visit that too at a scheduled time. Gold loan application involves the Application process, Document verification and Purity test of Gold. Application and Document verification process can be completed online, whereas one has to visit the bank for the Purity test of Gold. A bank representative calls shortly after submitting a loan application and fixes an appointment. Bank authorities analysed the mortgaged gold for its composition, purity and impurities in the Purity test of Gold. After completing all the procedures and meeting the eligibility criteria, a loan is approved. An approval letter is given to the borrower, which contains details about the lending bank, loan scheme, interest rates, processing fee, tenure, repayment options, etc., along with terms and conditions of the bank. When the applicant or borrower agrees to these terms and conditions, one’s loan amount credited to their bank account.

 
Why avail loan from Axis Bank?

Axis Bank provides the best offers in Gold Loan, and it can be avail by non-Axis Bank customers as well. A loan amount of Rs 25 lakh with incurring interest rates of 12.50% p.a.to 17.50% p.a are levied. 1% of the Loan amount+ GST is charged as a Processing fee.  A 3 years tenure period with repayment options is made available to the applicant. If an applicant fails to make a repayment, he/she can extend the tenure period before its expiry. As Gold Loan is a loan against ornaments, a high amount of loan can get sanctioned. The Gold loan disbursal can happen the same day of the application submission. The document verification can be completed via online mode as well. A copy of Residence proof and a copy of Identity proof, along with two passport-sized photographs, are asked for verification. No guarantor is required for availing a Gold Loan. Bank Authorities perform the Purity test of Gold, and the mortgaged gold must weigh above 18 carats. Axis Bank Gold Loan is a very lucrative option for obtaining a Gold Loan in these unprecedented times.

Must Read:- When should you opt for a gold loan? 

In contrast to an individual or home advance, the gold loan is viewed as a protected type of getting for the two banks and borrower. There is trust in the eyes of the loan lender, as he authorizes an amount of sum to the borrower against gold insurance. Basically, a borrower can benefit from advances from banks by giving their gold gems, coins or bars as security with them. On occasion, the borrower completes reimbursement of their residency, the bank returns the sparkling metal on the due date. 

One of the vital benefits of applying for the gold advance is that they are handled in practically no time and are, for the most part, saved for short to medium term span.To apply for gold credits, a client should be over the age of 18 years and should possess the yellow metal. The purpose for why a gold advance is simpler is on the grounds that the financing cost on these types of advances are less expensive contrasted with other accessible choices like individual credit.

Additionally, the tenure is entirely adaptable, fluctuating from not many days to 5 years. Moreover, a bank or NBFC doesn't impose any pre-instalment charges on gold advances. Reports required for this type of advance are additionally less. Albeit gold credits look alluring contrasted with different choices, there is a rundown of components a client should recall prior to applying. 

Here are a few tips to remember while taking a gold advance -

1. The RBI has a rule commanding that gold advances not surpassing 75% of the worth of the metal pawned can be given out. The rate frequently contrasts from one bank to another, so on the off chance that you need a higher advance sum, there may be moneylenders offering you a higher rate.
   
   
2. Most banks, like Muthoot Finance gold loan, don't charge high handling expenses on Gold credits, and the rate is normally under 1% of the advance sum. In the event that there are moneylenders charging a higher preparing expense, that is unquestionably not the well-known pattern, you can move toward an alternate bank.
   
   
3. Gold Loans are adaptable, more adaptable than unstable or different types of got advances. Contingent upon the bank's terms, you can even decide to pay simply the premium on a month to month/quarterly premise and pay the head toward the finish of the residency. Likewise, on account of gold credits, the disbursal time is super-fast as well.
   
   
4. Ensure you contrast various choices accessible and various banks. It is additionally prudent to do some exploration on the validity of the bank while likewise giving close consideration to the reimbursement terms. Monitoring the nature of the gold in your ownership is key too. To apply for gold advances, a client should be over the age of 18 years and should claim the yellow metal.

Conclusion -

Gold loan is a standout amongst other advanced choices today. Why? Indeed, essentially on the grounds that it is not difficult to obtain. Such advances assist you with getting monetary guidance in a difficult situation. This is likewise one reason why the gold credit market has stayed well known among the masses for a long time now. Other than banks, different NBFCs also have begun zeroing in on this area. While gold advance has different advantages, while applying for it, individuals should step with alertness.

Read More:- Should We Avail Gold Loans? 

Banking sector in the Indian financial system plays the most important role in shaping the economy. Banks in India offer various kinds of services, out of which the service of providing/granting loans is the utmost important. Banks provide various kinds of loans, namely education loan, car loan, home loan, gold loan, personal loan, and many more. Though there are different kinds of loans, the nature of a loan can either be secured or unsecured.

Secured and unsecured loans are the terms coined from the perspective of banks. Loans like education loans are unsecured loans, as the bank trusts the customer and grants an opportunity, whereas a gold loan is a secured loan, wherein the borrower pledges gold (either in the form of jewelry or biscuits or bricks) and asks for the loan. What a secured loan basically suggests is that the asset/property/gold which is pledged by the borrower would be kept with full security, and the borrower would be able to get his property back after paying the principal amount along with interest.

A gold loan grant asks the borrower to pledge any kind of gold (more pure than 18 Karats), to get the loan granted. It is similar to a home loan, wherein the bank asks the borrower to submit the official papers of any other property as collateral.

Secured loans are comparatively easy to get and hence are more in demand. Such loans guarantee money, time, and schemes to repay the loan on time. Banks also keep the pledged properties in high security vaults, so the borrower also gets a sense of satisfaction that his belongings are kept somewhere safe. Though to get the ownership of pledged assets back, the entire amount (principal amount + interest) must be paid. It is also true that interest rates on gold loans fluctuate a lot because of market volatility. Hence, availing gold loans in recession or when the market value of gold is low should not be considered as a good financing option. As higher interest rate equals higher payment within the same time.

Coming to defaulting in gold loan, banks increase the interest rate and charge late fees, credit/CIBIL score is negatively affected, the bank would blacklist your name from providing loans any further, and you would not be able to fund future operations via organized loans. The risk in availing a gold loan is that of losing the ownership of the gold endowed to the bank. Banks generally put the gold pledged by the borrower on auction so as to recover the amount they didn’t receive back.

Hence, every borrower must foremost go through the terms and conditions, must logically structure the loan repayment process, must check the gold loan interest rate along with the market price of gold, and then accordingly decide whether it is the right time/bank/policy to avail the loan. The gold loan interest rate can be checked using the gold loan EMI calculator from any credible website on the internet, and based on that the decision should be made.

These were a few security measures which secured loans adhere to. Secured loans also abstractly push the borrower to judiciously utilize the amount availed because of the fact that his property is in the hands of an external body; which means that secured loans also motivate the borrower to work with more precision and be concise with the monthly payment budget.

Gold loan is the most convenient option to get money for the short term, mainly because of lower interest rates (generally lower when compared to other kinds of loans). SBI Bank is one such bank which offers friendly interest rates and requires basic approval documents to grant the SBI gold loan.

Also Read:- Why Should We Choose A Gold Loan? 

Gold loans are the best option if you want to get an accessible fund in a short amount of time. It is the safest investment option for getting an excellent value for your gold ornament.

There are a lot of benefits to applying for a gold loan. Some of them are listed below:- 

1. Processing:- As a gold loan is a secured loan, you give your gold against the loan amount. So here, the gold will act as a security, so banks usually dispersed these types of loans very quickly. The documentation process is not very lengthy. You just have to fill a small application form and attach some documents like an Aadhar card, pan card or passport for the verification process. You don't have to wait for a long time to get your documents verified, banks only take a few minutes to settle all the paperwork, and once it's done, they credit the loan amount to your bank account.
    
2. Interest Rate:- The interest rate for the gold loan is comparatively less than personal loans. The range is usually between 7% to 13% p.a. you save a lot of money here because the interest rate on gold loan is low. Some banks allow you to pledge any other asset that you have as collateral, it will definitely help you decrease your interest rate even more.
   
   
3. Repayment options:- Banks give flexible repayment options to the customers. There are some unique options like 'interest only' where you just pay the interest rate that occurs every month, and you pay the whole principal amount at the end of the tenure. There are many other options like this available. The tenure usually ranges from 12-48 months, but you can extend it if you have some financial constraints. It is generally recommended to choose a shorter tenure for a gold loan because you might end up paying more interest than your loan amount.
   
   
4. Processing fee:- Most banks like Corporation Bank gold loan or State Bank of india gold loan don't usually charge a processing fee for gold, but if they do, it's generally 1% of your loan amount, which is very affordable and less expensive. But many banks and Non-Banking Financial Companies don't ask you to pay any processing fee because the process of gold loaning is quicker, and they have your gold as collateral.
   
   
5. Income proof:- Unlike a personal loan, you don't have to submit any income proof to show that you're eligible for this loan. This feature makes a gold loan attractive because it allows everyone from an employed salaried person to an unemployed housewife to apply for this loan.
   
   
6. Credit Score:- If you have a low or bad credit score, then your application for any other loan can be rejected, or you'll have to pay a high-interest rate to avail of that loan. But that's not the case for a gold loan, and here you don't have to show your credit score to avail of this loan. You can get a gold loan at a low interest rate even if your credit score is low.
   
   
7. Anytime liquidity:- You can get this loan anytime, and the bank will just need 5-15 minutes to complete the whole procedure. So you can quickly get cash against your gold anytime and within just a few minutes.
   
   
8. Flexibility:- You can use the money you get from a gold loan anytime and anywhere. Unlike car loans and house loans, you don't have to use them for one particular situation particularly. You can use it for different purposes simultaneously, and you are not reasonable to anyone about your expenses. This gives you complete flexibility over the money you get from a gold loan so that you can use it for different purposes like wedding, medical expenses, vacation, debts, buying an asset or for a child's education.

Conclusion: There are a lot of advantages to applying for a gold loan. And you can apply for a gold loan anytime you want. The basic requirement is pure gold. But you'll have to be careful while paying the instalments because if you fail to pay the loan amount or the instalments, then the bank will seize your gold and sell it to cover up the loan and the interest amount. 

Read More About:- What is a Gold Loan? 

Any of the existing loans and the vast liabilities is the factor that continuously determines the home loan eligibility criteria. Whenever you have any of the loans, whether it can be a personal loan or a gold loan, all the banks calculate the repayment capacity based on every month income. Therefore, if any of the loans EMI also take up a considerable portion of every month income, and if you do not have a high score, this would be difficult to get the best of the home loan. Any of the applicant's avail of the home loan at any of the best banks. They would also be required to submit some of the primaries, detailed application form documents work. Nowadays, home loan applications are also made with online mode. Many of the banks also allow you to submit some of the preliminary application forms through online mode. And this is very fast and simple. You can choose any of whatever you have decided, but before avail, you need to check home loan EMI calculator and eligibility criteria; if you are eligible, then you can fill the form.

The substantial loan amounts that all the borrowers can get also depend on CIBIL score, income certificate, or more of the things. You can also check the loan amount that you are also eligible for using the calculator. The home loan minimum and the maximum period is 5 to 30 years; almost all banks provide the same time because the RBI always decides how long you can choose and avail the home loan.

Before you start massive research for a big dream house, one of the essential and vital things you would have to decide is how much fund you wish to avail and require. With some of the very effective high realty rates, those people purchase a home they always help this loan for buying any of the houses. Through this loan, you can or never get the total percentage of loan amounts. The maximum you can only get 80% to 90%, not more than this percentage because this is always the Reserve Bank of India.

If you are deciding any of the locations, it is a huge decision you also have to make. Proper research is always required when you do these things. Because without examination, you should not purchase any of the property. You have to research much about the property. Any of the builders in real estate companies also charge the construction of the house. This loan always has two calculating interest rate methods, whether you choose a static method or a floating rate method.

If you are choosing a fixed interest rate method, then the rate would be decided at the time. Whatever loan you have sanctioned, and remain the same every month; Otherside floating interest rate would be changed according to the market rate price. Mostly, many of the borrowers only opt for fixed interest rates on this home loan as they are also assured of the same rate until the end of the tenure period. However, this can not always be the same. This always depends on the person which method they would like to choose. But before selecting any of the plans, you need to research much about the technique.

Conclusion
Bank of India home loan interest rate charges only 6.75% per annum. The rate would be 7 to 9% between these two numbers. All banks charge interest rates. It depends on you which bank you are taking a secure home loan. If you are choosing another bank, then you have to check the interest rate. If they are charging low, then you can avail home loan in that bank. And some of the other things you also need to check because this would be very helpful for you in future. If the rate would be low, then EMI is also common.

Must Read:-  Unknown Fact about the Home Loan