Difference Between Online and Offline Gold Loan Process
One of the major reasons people find it convenient to go for gold loans is its affordable rates of interest. So, now we are going to talk about various aspects that are involved in the availing of gold loans. So, let me tell you that there is not much difference between gold loans offline and gold loans online. It is just that under gold loan online, one has to do the same procedure that they would do by visiting a bank branch under the offline gold loan. You can avail of a loan against the gold that you once bought or made an investment in and use it for your urgent need for funds. Gold loans have many benefits because they have gained a lot of prestige in the market and have become popular amongst people.
So, let us discuss the process of getting a gold loan, so the steps are as below:
1) Gold loan application:
The first step in this process is to opt for a loan amount that you would want from the lender, various institutions offer gold loans, and before going to one of these, you should make sure that you have compared different banks and lenders and choose the most suitable one for this process. There are two methods for the application process, that is, online and offline. For the online process, you need to go to the website of the bank or lender and apply for the loan there, whereas, in the offline method, you need to go to the nearest branch and fill the application form there.
2) Gold submission:
This is the most important step to get a gold loan; your bank or lender’s website needs to submit the gold ornaments as security or collateral. You must not forget that the submission of gold cannot be made online, so you need to visit the branch and submit your gold.
3) Gold evaluation:
The third step is gold evaluation. Under this process, the lender or bank will calculate the total value of the gold you have pledged. This is determined by the current market value of the gold, and the value of the gold will tell how much loan you will get for the gold pledged. So, it will majorly depend on the value of your gold. One can get a maximum of 90% of the gold value as the loan amount. And the lenders give the amount according to the Gold Loan Per Gram.
4) Documentation process:
In this process, you will have to submit a few documents to the lender. This involves simple documentation with minimum document requirements such as identity proof, residency proof, income status, passport size photographs, etc.
5) Eligibility, Authentication, and disbursal:
After all the steps are done, the lender checks your eligibility. Each bank and lender has a different set of conditions based on which they check eligibility. These banks' or lender’s website factors generally involve the borrower’s age, purity of the gold pledged, etc. A person with a low credit score can also get a gold loan. After all this, the authentication is done, after which the amount of the loan is disbursed into your bank account. This is the whole process of applying for a gold loan and what is required to get a gold loan approved.
If we talk about a gold loan, everyone must have heard of the name of Gold Loan in HDFC Bank as they are quite popular among this line of lending against pledged gold. HDFC can be a really good option for you to get a gold loan as they offer a lot of different schemes to choose from. So one can compare these different schemes on various bases before applying for a gold loan under one of these schemes.
Also Read:- Gold Loan Plays An Important Role In Medical Emergencies Too
