Gold Loan For Medical Emergencies
Money against the gold ornament you pledge in a bank or Non-Banking Financial Institutes(NBFC) is a gold loan. The loan is fruitful at times of different needs and wants. The loan can be availed both in the online and offline mode. Using the internet and an electronic gadget, you can avail of this loan from anywhere in the world. Depending on the day’s gold rate, the value of the gold is determined. The gold rate today is Rs. 48,670 for 10kg of 24k gold.
The Bank of India gold loan is a trustworthy gold loan with millions of customers and borrowers. The bank offers online and offline services with the best interest rates and maximum loan amount. The processing is rapid, and the Bank of India(BOI) disburses the loan for several hours. In addition, the bank introduces various schemes and offers from time to time.
Features and benefits of availing a Gold Loan
1) Easy Processing: The processing of the gold loan is straightforward, mainly because of its minimum documentation requirement. Unlike many other loans, gold loans only need id proof, two photocopies of the applicant and the collateral. Therefore, banks and NBFCs quickly verify the loan and disburse the money.
2) No income proof needed: Generally, to avail of a loan, a bank or NBFC demands the applicant’s proof of income to know the payment capability. But for a gold loan, there is no need for income proof as the loan is secured.
3) No CIBIL score requirement: The credit or CIBIL score summarises a report by a company named CIBIL. The report consists of an individual’s past credits(loans or debt), personal information, banking information, employment information and other necessities. This score usually varies from 300 to 900 and is incredibly important for availing of loans. But for a gold loan, the bank or NBFC doesn’t have a passing score that one should minimum have; therefore, if you are in a highly critical position and need money, as soon as the possible gold loan is your best choice.
4) Loan amount: Sometimes hospital bills cross your annual income, and unfortunately, not many banks and NBFCs grant money that is required, but in a gold loan, nothing matters as long as you have pure and valuable gold in your hands. The loan amount entirely depends on the gold. Therefore the higher the purity and the weight of the gold, the higher the principal amount. Lenders usually grant about 80% of the asset’s value in cash or cheque or net banking very soon after the application’s approval.
5) Low-interest rate: Just because you are in an emergency, you shouldn’t take the first loan you see. It needs to be thoroughly verified and should have the lowest interest rate. Fortunately, gold loan provides loan amount with low-interest rate compared to many other loans.
6) Tenure: The loan term of the loan is known as tenure, and it varies from 3 months to 24 months for gold loans in most banks and NBFCs. The loan is short term and passes very quickly, so it is the best for medical causes.
7) Repayment options: Installment amount as an interest to pay at the beginning or the end of the month till the loan ends are EMI and are highly popular in many loans, including gold loan. But a gold loan has another repayment scheme known as the Bullet scheme, where you can pay the interest amount on the whole at the end of the tenure with the principal amount.
8) Processing and prepayment charges: The fee incurred for the processing and approval of the gold loan is a processing fee. The fee is a maximum of 1% of the loan amount. Prepayment or preclosure charges are procured if the borrower closes the loan sooner than the end of tenure. The fee is NIL in most banks and NBFC, while a few charge a maximum of 1% of the outstanding loan amount.
