Blog #Axis bank gold loan

When there are ups and downs and the risk of losses are seen and the chances of its happening are understood before time in hand there in there will be the best option to invest in the gold and keeping it till the time the market bounces back again where uh uh loan to value ratio will be much higher than that low period.

GOLD IS IMPORTANT AS:- 

• There are different types of things available that can be placed in the form of collateral security but gold is the most preferred metal which is kept as an asset. The importance of gold can be understood from this point of view only that there might be a fluctuation daily in the price of the gold in the local as well as an international market but the fluctuations are not too extreme. For example, if today the price of gold is Rs 49,500 while tomorrow if it increases there will be a tendency of getting a maximum of three to four thousand like rupees Rs 53,000 for Rs 52,000. In the same way, if the price is dropping then also the same concept will be seen.

• Now we can come across the most important factor that is the rate of interest of the gold loan which prevails. There is always a question as to why the rate of interest of the gold loan is so low as compared to all the other types of loans. Axis bank gold loan provide such facilities in order to help them. There is a catch for the flexibility of the gold to retain its price or one can say that it is successful in holding its value along with the increasing and taking the time of the clock and the calendar. during the time of inflation when the prices of all the goods and services produced within the domestic territory of the country keep on rising and the common people lose the purchasing power. During this period investing in gold with the view that after the repairing of the crisis wave will be a good option to finance a purpose that needs some lump sum amount of money. 

• The other important thing which can be termed as a factor is the time consumption for availing this type of loan. If anyone is going to avail of a gold loan one might see that there are no long queues or waiting times in case of the other types of loans. Some reasons behind it can support the justification. The only process of valuation of the gold jewellery and the scrutinizing of just two to three documents of the customer is the only thing which is supposed to be done by the bank officials. On the contrary of the fact, there is the chance of getting off favourable conditions even if an individual approaches the financial institution within 10 to 12 hours.

• Now if we come and discuss the documentation process of a gold loan we will be finding that there is no complexity present in the process and only a few simple documents will be required just to verify the candidate and the gold which he or she will be submitting to the bank. The proof of address proof of Identity documents showing the ownership of the gold and some passport size photographs is all that is needed in the attested format by their signature. There is no requirement of showing any kind of income proof or for employers verification or any kind of inspection which takes another step due to which the time consumption increase is in case of the other types of the loans

There is no requirement of any type of credit score as a credit score is a score that has all three-digit numbers and States how the loan previously away has been performed to the way of payment. These are generally done in case of the unsecured loans where there is a requirement of the basic primary source of payment that is the income and the trend of paying which has been done in the past will give an idea to the loan provider that will it was providing the loan amount to that particular person who is paying properly or not.

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

Yes, it is safe to go with a gold loan but there are a few things to bear in mind if you're in desperate need of cash and considering taking out a gold loan.

The credibility of the Lender-

A gold loan can be described in two ways: given and taken. You make money by giving gold. You must apply your gold as collateral or insurance to the lender if asked by a bank or NBFC. When the loan is repaid in full, the lender will automatically release your gold. If there is a scam and the lender refuses to refund your gold despite the fact that you have paid the loan in full payment.

To safeguard yourself against such situations and fraud, the alternative you choose must be well-known and have a good market position. If you take a loan from an unregulated source, there's a risk you'll be misled and lose your gold.

a) Loan Amount-

When applying for a gold loan, the loan amount is most important. There are numerous banks that sell gold, as well as numerous non-bank financial institutions (NBFIs) that specialize in gold loans. You should be mindful that no lender can lend you 100% of the value of your gold. The average loan amount is based on the total value of your gold and ranges from 65 percent to 85 percent. For example, bank, under Axis Bank gold loan per gram you can simply get the 90% of the value of your gold submitted i.e 90k on one 1 lakh. So, if your gold is worth 1 lakh, the maximum sum lent by financial institutions would be 85k based on the total value of your gold. As a consequence, it's easier to choose from a range of choices that will give you the most money for your gold. 

b) Rate of Interest-

You decide to get the best price on the goods you are buying because you are an intelligent buyer. For gold loans, the principle is the same. The amount of gold you have to put up as collateral determines your gold loan eligibility. As a result, always choose an option that will lend you more money at a lower interest rate. So look for a lender that is a good fit for you so you don't have to pay a higher loan rate. Gold rate is an essential factor. So wherever you live, you should be aware of the gold rate today .  For e.g if you live in Chennai you must be aware of the Gold Rate in Chennai. 

c) Repayment method-

A person's decision to take out a gold loan is influenced by a number of factors. In contrast to other types of loans, a gold loan provides more flexibility in terms of repayment and payment methods. As a borrower, it is your responsibility to examine the repayment options provided by a specific source for your gold loans. There are several options for repayment, including monthly, quarterly, semi-annually, or yearly payments, with the remainder of the principal due at the end of the term. As a result, paying a portion of the principal and interest each month is the easiest way to repay. Some lenders also offer a bullet repayment option, in which you pay both the interest and the principal at the end of the term.

d) Tenure-

Before taking out a gold loan from any lender, make sure you know how much you can afford to repay. Taking out a gold loan usually has a short term, ranging from 12 to 48 months. If you try to miss payments, it will have a negative effect on your credit score and you could be assessed a penalty.

CONCLUSION- 

Holding these points in mind will assist you in making an appropriate decision based on your capabilities. Examine the clauses of various financial firms and learn more about how they can shield you from a number of scams and misunderstandings.            

HOW DOES A GOLD LOAN WORK?

In a gold loan, the borrower applies for a gold loan by pledging his gold articles as collateral or security. The borrower gives these articles as a security, that, in case if the borrower will not be able to repay the loan,  the money lender or the bank, which has granted the money, has all the rights to sell that gold takes the amount of money.

A gold loan works in the following steps: -

1. You need to visit the bank with the gold articles that you want to pledge.
   
   
2. The moneylender will check the purity and the value of the gold.
   
   
3. After checking the value of the gold, the price of the gold is decided.
   
   
4. Then, after deciding the market price of the gold, the amount of loan will be decided that the bank will grant you. It can go upto a maximum of 80% of the value of the gold that is pledged.
   
   

 JEWELLERS CAN NOW REPAY PART OF GOLD LOAN IN PHYSICAL LOAN: -

The bank provides an option to the borrower to repay a part of the gold metal loan (GML) in physical gold.According to the instructions given by the Reserve Bank of India, the banks who are authorised to import the gold metal and the banks who are designated to participate in Gold Molestation Scheme 2015 can give the gold metal loan to the jewellery exporters or the domestic manufacturers of the gold jewellery. Earlier, the gold loan was allowed to be repaid in cash (Indian currency - rupees), equal to the value of the gold. But now the Reserve

 Bank of India has made some changes which are as follows: -

• The banks shall provide the option to repay a part of the gold metal loan in physical gold of one kg or more to the borrower.
  
  
• The gold metal loan should have been extended out of the local sources. The RBI said that the repayment of the gold loan has to be done using the India Good Delivery Standards (IGDS).
  
  
• The bank also added that the gold metal has to be delivered directly to the borrower.
  
  
• Another condition that was laid down by the Reserve Bank of India for the replacement of the loan was that the agreement of the loan should consist of the details of the options that can be used by the borrower. The details of the acceptable standards and the manner in which the gold has to be delivered for the repayment of the gold metal loan

ADVANTAGES OF A GOLD LOAN: -

The following are the advantages of a gold loan which are boon for the borrower to obtain Gold Loan: -

• Faster processing- A gold loan is a secured loan, and therefore, it includes minimal documentation and lenient eligibility criteria. A credit score is also not required for the approval of a gold loan. Therefore, the money lenders generally disburse the gold loan in a few hours. Axis Bank gold loan offers minimal documentation.
  
  
• Lower interest rate-  The interest rate on a gold loan is low compared to the other loans, such as a personal loan or a car loan. If you will attach another asset as security, then the interest rate can be lowered further. The interest rate can be calculated with a gold loan calculator.
  
  
• No processing fee-  Most of the banks do not charge a processing fee for the gold loan. If some of the banks or the money lenders charge a processing fee, it will be only 1-2% of the loan amount.
  
  
• No foreclosure charges- There are no foreclosure charges on a gold loan. However, if a bank or a money lender asks for some, it will be only 1-2% of the loan amount.
  
  

No income proof needed- There is no need for any income proof when you are applying for a gold loan because you are 

Must Read:- Gold Loan Repayment Methods 

About Gold Loan

Gold advance alludes to an advance against gold which proposes that credit is taken to enter the state of cash or such monetary money in return for promising or removal of the gold articles like gems to the banks or loaner. Axis bank gold loan are one of  the banks that offer this advance. The advance taken out against the gold is set or determined by the immaculateness or the portion of the general cost of the gold gave. you'll take care of the credit through portions set by you till the advance is paid off and furthermore the articles are given back to you. As found in various advances, there are unit-explicit utilizations for each credit anyway a gold advance licenses you to utilize the assets in any methodology you might want and this can be an awesome stock of assets in a crisis. This is one of the premier normal advances taken in the Republic of India and is broadly used by people in country regions.

What are the benefits Of A Gold Loan?

Quick Processing Times - This requires the least documentation and gold credit qualification capabilities are permissive which causes quick interaction times allowing the advance to be several hours after endorsement.

Use Flexibility - In credits like home advances or car advances, the assets are assigned to a specific use while, in gold advances, the supports apportioned might be utilized for any longings or necessities.

Decreased Interest Rates - As gold is saved for security, there could be no other requirement for a guarantee that allows a diminished rate.

Pay Verification Not Required - The banks needn't bother with confirmation of monetary profit since it very well might be an advance against gold that serves the necessity for guarantee.

Drawbacks to Gold Loans

Advance to Credit Magnitude Relation - Gold advance offers a positive extent of the general cost of the gold that arrives at a large portion of 80% of the general cost. This can be expressed as the Loan to Value proportion. This infers that you just may have the value of five lakhs in gold anyway are offered four lakhs exclusively.

Odds of Losing Your Gold - If you can't pay the costs on schedule or have an enormous amount of credit to reimburse, your gold might be unloaded as security.

Records and Eligibility Needed for Gold Loans

Gold loan eligibility is probably the simplest cycle and needs the littlest measure of possible reports. 

The reports required are -

1) ID reports- PAN Card/Aadhaar Card/Voter's ID Card/Passport Copy·

2) Address Proof- License/Aadhar Card/Passport

3) Identification Size pictures

Least and most Age necessities - 

Least Age - 21 Years (Some banks could require 23 Years)

Most extreme Age - 65 Years

Business Nature -  

a) Independently employed individuals, just as salaried staff, are qualified.

b) Entrepreneurs needing capital and further assets.

c) Housewives and retirees are likewise qualified.

Nature of Gold

 i) Gold adornments should be in the middle of 18 to 24 carats. 

ii) Gold coins and bars might be utilized to apply for the advance

CIBIL Score

a) Your CIBIL score will not affect your solicitation for the advance.

 b) Be that as it may, your repayment record can add to your CIBIL score. 

Gold advances are one in everything about first valuable and generally safe advances that are essentially available by everyone paying little heed to the occupation and they're very normal and need the base number of records that settles on it an alluring decision for housewives or resigned people, some regular decisions are AXIS gold advance. Albeit gold is an always developing business sector, the bogus view of the expenses can never fall in India is kind of normal, in any case, this can be not the situation. There are examples of fast fall in costs which can bring down the credit to value size connection. On the off chance that applying for a gold credit, check all factors concerned and select the ideal decision.

Also Read:- Five Banks That Charge The Lowest Rates On Gold Loans Starting From 7% 

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? 

Axis Bank is a well-known organization in the private banking industry. Axis Bank provides Gold Loans at a low cost. By pledging one's gold ornaments or gold coins as collateral, an Axis Bank gold loan may be obtained to fulfil an immediate cash requirement. Axis Bank provides one of the lowest gold loan rates, at 12.50 percent, to both current and new bank customers. The interest rate on an Axis Bank jewel loan varies depending on the amount borrowed, the purity of the gold, and the loan to value (LTV) ratio.  In line with the gold rate today , Axis Bank offers a Gold Loan per gram rate of Rs. 2,506 to Rs. 4,621. You would be able to get a gold loan from Axis Bank not only quickly, but also at a lower interest rate.

Features

• The interest rate on an Axis Bank gold loan ranges from 12.50 per cent to 17.50 per cent.
• Processing fees of 1% plus GST are charged by Axis Bank.
• The term of a Gold Loan will range from 6 to 24 months.
• Axis Bank offers the lowest EMI per lakh on an Axis Bank gold loan with the lowest gold loan interest rate of 12.50 per cent and the longest loan term of 24 months.
• Prepayment of jewel loans is free of charge at Axis Bank.

Fees

• A processing Fees of 1% plus applicable taxes is levied.
• A valuation Fees of Rs. 500 plus applicable taxes are charged.
• No prepayment charges are paid by the customer.
• A Penal Interest of 2% of the loan amount per month has to be paid on the overdue amount.
• Foreclosure Charges
  
  
  • If the gold loan is closed within 3 months of the sanction date, 2% of the approved loan sum plus related taxes will be charged.
  • If the gold loan is closed within 3 to 6 months of the sanction date, 1% of the approved loan sum plus related taxes will be charged.
  • If the gold loan is closed within 6 to 11 months of the sanction date, 0.50 per cent of the approved loan sum plus applicable taxes are payable.
  • If the gold loan is closed after 11 months from the date of sanction, there will be no foreclosure costs.

Interest Rates

Axis Bank offers the lowest gold loan interest rate of 12.50 percent. Axis Bank currently provides gold loans beginning at 12.50 per cent, which is 0.5 percent lower than the previous cost of 13.00 percent.

Eligibility

You can easily get a gold loan from Axis Bank if you are between the ages of 18 and 75 and have gold ornaments or jewellery or coins to put up as collateral. Additionally, the gold products you pledge must meet the bank's internal requirements.

Conclusion

Axis Bank Gold Loans are gold-backed loans with same-day disbursement. By visiting your nearest Axis Bank branch, you can request a Gold Loan and receive prompt approval. Axis Bank offers a gold loan of up to Rs. 20 lakh. The tenure period ranges from six to thirty-six months. Axis Bank provides a gold loan for agriculture at a cost that is percent to 2 per cent lower than gold loan rates. To meet your financial needs, you can apply for an Axis Bank Gold Loan. Axis Bank provides an online payment option for gold loans. When applying for a gold loan, you are not required to have a co-applicant. You can check the status of your Axis Bank Gold Loan online by going to the bank's website and logging in with your username and password.

Read More:- Gold Loan Meet The Needs Of People 

A gold advance is a gotten advance taken by the borrower from a credit expert by promising their gold articles as protection. The advanced aggregate is a certain level of gold, ordinarily up to 80%, due to the current market worth and nature of gold.

What are the upsides of going for a gold advance?

• A gold advance resembles an individual advance in the social occasion your brief financial requirements, be it overall tutoring, marriage costs, covering wellbeing-related emergencies, or some other individual use.
  
  
• Snappier Disbursal-Minimum documentation prompts faster planning of gold credits as a result of its ensured about nature.
  
  
• The versatility of utilization Since there is no checking of the end-use, it gives you the flexibility to use the advance for an expense.
  
  
• Ensured about (or got) Loan Type-You are not expected to introduce some other security/protection to the moneylender other than the blade gold improvements.
  
  
• Lower Interest Rate-The financing costs on gold credits are put on the lower side when they are considered against singular advances since gold fills in as security insurance.

Trade your idle asset A dormant asset, gold is just now and again used for making money. Hence gold credit is the ideal response for raising capital and using the resource when you anticipate that the cash should meet your financial necessities. It is in like manner more secure in the limits of a bank's or a financial foundation's stockpiling than your home.

What are the normal financing costs and planning costs?

In India, gold advances are without a doubt the quickest advances to be approved as the different banks like the Axis Bank Gold Loan has your gold as security in case of default, killing the prerequisite for CIBIL evaluations or reports. The credit can be embraced, over the counter, rapidly, or for several hours. Various moneylenders can have your gold regarded quickly and approval the credit instantly, after a check of the excellence and assessment of the gold.

Things to recollect before choosing a gold advance -

Getting an advance is a major advance, so before taking an advance is one necessity to remember a couple of things :

Gold as an asset has an exciting motivation in India since it is for the most part a family decoration. Giving gold as protection infers that you hazard losing your family diamonds on the off chance that you can't repay the advance. This can cause over-the-top mental and enthusiastic squeezing factors on the borrower just as the entire family. It is an extraordinary thought to have an exhibited history of making credit repayments so you make certain about your ability to recover your gold.

There are a couple of NBFCs in the country that offer engaging terms for these advances. Some of them could be ineffectually run and may shut down without notice leaving you at a mishap. It is essential to examine the various moneylenders and pick one that has a respectable standing. Numerous monetary establishments, a couple nationalized, and different private banks offer gold credits at lower loan costs.

Generally, just the gold of 18 Karat worth or more is recognized by banks. You similarly ought to be more than 21 years of age to apply for such an advance. Always check the Gold Loan eligibility before applying for it.

In various cases, you are not expected to introduce a remuneration statement since your gold is held as security by the bank. Regardless, the normal mistake people make isn't understanding their necessities and tracking down a development that would be sensible for them and their compensation, expenses, and lifestyle. Regardless, a couple of banks may demand a remuneration assertion for advances over a particular whole.

Must Read:- GOLD LOAN FOR PURCHASE SOMETHING