About gold loan
It is a secured loan that can be availed at any bank, private institution or NBFC (Non-Banking Financial Companies). Borrowers have to pledge their gold ornament to get funds against it. The entire processing time of a gold loan is significantly less, which makes it an ideal loan to get funds instantly. Customers get the flexibility to use the funds they have borrowed through gold loans freely. Banks don't monitor the end usage of the funds.
Advantages of gold loan
- Flexibility: There are a number of banks, private institutions and NBFCs that provide the facility of a gold loan. So customers get the flexibility to compare all the options and then choose the ideal gold load for them.
- Documentation:- The entire documentation process of a gold loan is very simple and quick. You have to submit the application form and attach some essential KYC documents required by the bank. You don't have to go through a bundle of paperwork to get your loan application approved.
- Credit Score: You can use this loan as an opportunity to increase your credit score. To do this, you'll have to repay all your instalments on time, and you will notice a change in your credit repayment history after some time.
- Repayment:- Customers have the flexibility to choose a loan repayment structure and tenure according to their budget, income and repayment capacity. So they can calculate their expenses and then choose a repayment tenure accordingly.
- Processing fee:- The entire process of a gold loan is very quick and easy. So banks don't charge for a lot of stuff like processing fees.
Gold loan online application :
Technology has made too much progress. And during this pandemic, everything is being digitalised. So if you want to apply for a gold loan, you can do it by using the online mode. You don't have to visit the bank's nearest branch and wait for hours to get your turn. You can quickly apply for the gold loan facility from the comfort of your home. Everything is being digital, so you can even sign the documents digitally. A lot of individuals are applying for instant loans from their homes. As it's pandemic and people are really scared to get out of their house. This might be an excellent start to make India Digital.
How can I apply for a gold loan facility online?
The entire application process of a gold loan is speedy, easy and effortless.
- Firstly you will have to visit the bank's online website and read everything about their gold loan facility and the eligibility criteria that is required.
- Check if you fit into that criteria perfectly or not.
- If you are eligible, then you can move ahead with filling the application form.
- Complete all the details required by the bank, and then you'll have to attach some essential KYC documents like Aadhar card, Pan card, Ration card, Electricity bill or other utility bills.
- Once you're done with the documentation process, a bank representative will visit your house to measure the gold purity and weight.
- Your Gold rate will determine the loan amount you'll receive.
- After the gold is valued, the bank will state all the terms and conditions regarding repayment of the loan and Interest Rate on Gold Loan in SBI.
- Once you have consented to the document, the loan amount will be disbursed to your bank account instantly.
Conclusion:- Multiple banks and private institutions provide the facility of a gold loan. To compare all the options available carefully and then make any decisions regarding your gold loan. Check your repayment capacity and then choose structure and tenure according to it.
Also Read:- Golden rules for obtaining Gold Loan
