Blog #Dena Bank Gold Loan

A gold loan is a loan against gold in which gold is pledged by the borrower with the lender and the amount is sanctioned by the lender after verifying the quality of the gold. One of the biggest advantages of the gold loan is the ease of availability. With the advent of digitalization and advancements in technology, most of the services are bought online. Nowadays banks prefer online modes more than offline modes for the distribution of their services. However, in a Gold loan, a customer has to visit the bank branch at least once to deposit the gold with the bank. Generally, an amount equivalent to 80% of the value of the gold is assigned which is transferred to the account of the customer within a period of 15 days. 

With the advent of this Covid-19 pandemic, it has become more and more difficult for people to step out of their homes and avail the of banking services. Banks however have already made their channels strong enough that they are capable of performing full-fledged online.Almost every banking service is available online and it also one of the fastest and safest modes of transaction of any service.

Banks have created their mobile app where you can get any banking service with just a few clicks. Gold loan is also one of those services provided by banks online. One can apply for a Gold loan from their own home. In this way banks are able to save a lot of their cost and customers are able to save a lot of their time and energy. That is why gold loan apply online has been promoted this much in recent times as it a win-win situation for all, be it the service provider or service receiver.

There are many banks that are providing their excellent services in the form of gold loans. Some of them are- 

1) Axis bank gold loan which provides the fastest disbursement. 

2) HDFC bank gold loan which provides excellent after-sales service.

3) SBI gold loan which is famous for its outstanding service and reputation of being the largest bank to provide gold loan services in the nation.

4) Dena Bank gold loan which is known for its low-interest rates and utmost trust of its customers.

Many other banks too provide their gold loan services. A customer willing to avail any such service just has to apply by filling an application form and the bank will automatically connect with the customer.In this high-paced business environment, businesses try to cater to as many customers as they can and serve them to prove them satisfactory services. In the same league, many banks are providing excellent services in the form of Gold loans.

To avail a Gold loan following eligibility criteria needs to be fulfilled-

1) The person applying for such a loan has to be a normal resident of India.

2) The person must have completed his/her 18 years of age.

3) He/she must have a self-owned house property in their name.

4) He/she must have in their possession and ownership the Gold which they are pledging with the bank.

Following documents are also needed to be filed for applying to a Gold loan-

1) Identity proof such as Aadhar card/ Voter card/ Pan Card/ License.

2) Residence proof such as Utility bill of house/ Adhaar card/ Voter ID/ License.

Fortunately, a gold loan is a secured loan so the banks do not check the CIBIL score of an individual. So individuals with a not-so-good CIBIL Score can also apply for a gold loan and get their amount sanctioned. 

Conclusion-

In this fast-paced and unstoppable modern era, one needs to get their work done quickly. The same goes while availing the financial services. Banks have their best to make the loan process less cumbersome, and less complex. They tried to bring the customer on an online platform so that more and more customers can be touched which has been a great step in developing the financial sector throughout the nation.

Read More:- What is the Top-Up Gold Loans Scheme 

The government introduces many schemes for helping people avail gold loans and especially for farmers. There are agricultural gold loans for farmers, which start from a rate of interest of 7% and onwards. This agricultural gold loan has various conditions, and the eligibility, rates of interest, tenure period etc., also vary according to different banks and lenders. These loans can be availed at a rate of interest that is 7% onwards, and the gold loan amount is sanctioned as per the gold loan per gram; a farmer can avail a loan of any amount, whether it is ₹1,000 or it is ₹ one crore, it offers a flexible repayment option whether the farmer repays on EMI basis or lump sum amount, it depends on the bank or lender and the borrower, they have a flexible tenure which can range between 1 month to 36 months, gold loans generally have minimal processing charges that can be anywhere between nil-1%.

The agricultural gold loans have a slight difference. They require certain things such as:

1) The borrower should fulfil the KYC guidelines as per the request of the bank or lender.

2) The borrower should be involved in agricultural activities or allied activities.

3) The RBI should classify the agricultural that the borrower undertakes as under the agricultural sector.

4) The borrower must be between the age group of 18 years and 68 years.

There are also some documents requirements that need to be fulfilled:

1) KYC documents such as PAN card, driving license, voter ID, passport etc.,

2) Address proof, electricity bills, water bills, telephone bills, Aadhar card, PAN card, driving license, voter ID, passport etc., 

3) Duly filled application form and other necessary documents include proof for five years of business continuity (for self-employed individuals), passport size photographs etc.

There are some features that agricultural gold loans carry; let us take a look at some of these features:

1) They have an easy and hassle-free loan process, and the loan amount’s disbursement can be done quickly.

2) They are available with low-interest rates compared to other types of loans, and they begin at 7% and onwards per annum.

3) They offer a convenient repayment schedule that you can choose; you can either repay the EMI system or monthly instalments.

4) Gold loans require minimal documents, which means that the documentation process does not take a lot of time.

5) Most importantly, your gold is kept safe in the bank vaults, and you don’t need to worry about the safety of your gold, and you can get it back as soon as you repay the amount of the loan.

6) Some banks even provide the option of gold loan renewal.

These are some of the features offered along with the agricultural gold loan, making it easier to avail of a gold loan and use it as per your convenience. There is no rigid rule to use the loan money on any particular activity.

Many financial institutions and banks offer you agricultural gold loans such as Dena bank gold loan, Axis bank, HDFC bank etc. These loans are pretty convenient and easy to avail of as they are quickly available so that they can cater to your needs of quick funds as well. In addition, you can also apply for the gold loan online and get the loan with just the click of a few buttons; and Some documents requirements which makes it easier to get the gold loan as you can get the loan just by sitting at your home. This makes it easier to discuss the terms and conditions. As you just have to visit the bank branch once. So, these are all the benefits that agricultural gold loans can offer the farmers.

Also Read:- Things To Keep In Mind While Availing Of Gold Loan