Features that celebrates Gold Loan borrowers

A gold loan is the simplest form of a loan from which the cash requirements and the emergency requirement of the cash can be fulfilled. Under this method if gold in the form of jewellery or the form of a coin if is available with you then you are having the chance to take it to the bank or any kind of nbfcs where it will be valued as per the gold loan per gram according to the current date and after the valuation is done you will be  explained and will be given information about to what extent of the amount of loan can be availed what can be the probable rate of interest, tenure period etc.

Purity of the gold

Everything is not what it seems. If having gold does not mean that it will be accepted. There is a minimum requirement that needs to be fulfilled by the loan borrowers that the gold which they are availing for the acceptance by the financial institutions must have the limitations of purity from the 18 carats as low to as high as 24 carats. Any limitations below or beyond the upper and lower limits are not acceptable by most of the banks and institutions but in certain cases, there are exceptions for which proper approval is required. All these things are done based on the heating up of the purpose of proper execution and evaluation of the accurate loan amount so that the customer does not suffer after availing of the loan.

Rate of interest

One of the most important things about the gold loan as per gold rate today  is that it has the most unique and comparable feature that is the lowest rate of interest. Yes, you heard it right, the lowest rate of interest as compared to any type of loan. It has been noticed that banks provide good deals of the whole done at a very low rate of interest as compared to that of the NBFC but overall the gold loan is provided with the lowest rate of interest. That makes the customer feel so easy and finds it's equal to avail a gold loan in kind of any emergency as compared to that of the other options which are time-consuming, expensive and uncertain.

No headache of credit score

If you talk about the personal loan, car loan or any other types of loans there is always a requirement of a credit score which is a three-digit number issued by the credit rating agencies or the bureaus. In most unsecured loans there is always a risk that either there will be a surrender of the loan amount or the non-payment of the loan or the customer will become bankrupt. In this type of situation, the bank has no option but to add the loss under the heading of a bad day for a bad loan which is a total loss for the financial institutions. Canara Bank gold loan offers such schemes that along with no requirement of credit score there are also other benefits. In the case of a gold loan, there is no risk associated the gold available with the bank against which the loan amount was sanctioned will be treated as an asset and will be sold off or will be auctioned in case of any such incidents and the bank will be having the freedom to resell it accordingly and recollect the amount from there.

Conclusion

To conclude, we can see that there is no other loan that will be sanctioned or approved as fast as a gold loan as there is a very little requirement of documentation which only includes the address proof of identity and just some passport size photographs and the documents showing the ownership of the gold. This is the reason that gold is not only used in the celebration of the festival but also in the celebration of crossing over the difficult situations of life in the form of a gold loan

Read More:- Gold Loan Meet The Needs Of People