Blog #Gold Loan

People who need some monetary assistance generally search for loan options that can cater for their needs. Among so many loans available in the Indian loan market, the borrower may find difficulty deciding the suitable borrowing option. Primarily, the debtors utilise gold loans and personal loans for emergency fund requirements. These loans provide quick disbursal of the loan amount and have manageable official documentation works to do. 

Gold loans do not require the credit score of the borrower to be strong. Still, personal loans require a good credit score of 700 or more mandatorily, as creditworthiness is an excellent factor for the personal loan to get approved. So, now people mostly get confused about which loan is a better option for them. So, an informed, comprehensive study is given below for people in a dilemma of which is the better loan option to choose.

A loan against gold is, or gold loan, where a borrower keeps gold assets with the creditor as a guarantee and gets the loan amount. The value of the gold pledged against a secured gold loan determines the loan amount provided to the borrower. The borrower needs to pay a monthly instalment until the entire loan amount is paid off, and after that, the lender returns the gold deposited with him back to the borrower. 

A personal loan is almost similar to a gold loan but is an unsecured loan where the creditor gets no collateral benefit for security purposes. If a person wants to loan an amount generated without keeping something as a guarantee, it is much harder for the loan applicant to get loan approval. But a personal loan can rescue people who are in immediate need of funds who do not have collateral to pledge.

The Gold loans tend to have a significant difference, compared amount of payout compared to the unsecured personal loan, so the interest percentage of these two loans differs from each other. Further, the gold loan per gram also differs from one gold loan scheme to another gold loan scheme. For example, where interest amounts vary from 7.5% to 29%, personal loans range from 9 % to 24%. This is because gold loans attract a low interest rate as the borrower puts collateral to reduce the risk of non-payment. At the same time, the personal loan has a higher rate of interest for its unsecured nature.

Another factor for a loan is the loan repayment period when the borrower needs to reimburse the loan. Gold loans generally have a shorter repayment period which ranges from 1 week to 3 years. Personal loans tend to have longer terms for repayment, which can range from one year to five years. The shorter loan tenure of a gold loan can be stressful but comes with a lower rate of interest. On the other hand, if a person wants to get a more extended period of repayment, then he needs to pay a higher rate of interest.

The personal loan and gold loan allow the borrower to pay back the loan with equated monthly instalments. But gold loans have flexible repayment options for their customers. Repayment options like interest-only repayment or bullet repayment system enable the borrower to pay back the sum according to their convenience. Therefore, the SBI gold loan interest rate or Punjab National Bank can be lower than other private banks and the same in the case of the personal l too.

The applicant's of a gold loan or personal loan want their lender to process their loan in the shortest amount of time. But the secured gold loan helps the borrower to procure the loan amount faster than a personal loan. Additionally,  in gold loans, people have to pay the processing fees with additional charges for gold valuation, administrative cost, documentation fees and many other things. Whereas in a personal loan, the charges are limited to service fees, insurance and processing fees.

Must Read:- Objectives Of Personal Loan 

The best alternative depending on the investor’s budget, numerous options are available for investment in gold. Some beneficial gold investment alternatives can be - Gold ETF using a demat account from famous Institutions like INVESCO India gold ETF, SBI gold ETF, and Kotak gold ETF; investing in gold savings fund well known for its systematic investment method; investing in gold mining stocks; investing in physical gold, gold jewellery, gold bars and coins; and investing in equity-based gold funds. 

A person having insufficient funds to invest in gold can get a gold Loan, and online gold loan payment like IIFL Gold Loan Payment has made the accessibility of gold loans better. It enables the borrower to get a lump sum amount of funds instead of gold ornaments or other gold articles like gold bars; bank minted gold coins can be used for any purpose.

The Indian gold and diamond trade contributed up-to 7.5% to the Gross Domestic Product (GDP) of India and further added 14% to India's entire merchandise exports, as per the reports in first quarter of the year 2021. Even the employment sector of gem and jewellery is likely to employ 8.23 billion people by 2022. After the government of India found potential growth and value addition, the government declared that this sector must be the focus area for export promotion. The Indian government has launched several regulations to stimulate the investment and promote the technology and scale to encourage Brand India in the worldwide market. In addition, the government has reduced the import duty for metals like gold and silver to bring down the prices of precious metals in the local market of India.

According to the list provided by the International Monetary Fund and World Gold Council, the data regarding the highest gold reserve as of August 2020 states that India ranks 92 with 657.7 tonnes of gold reserve. The countries who tops the list of highest gold reserves and precedes India are: United States, Germany, Italy, France, Russia, China, Switzerland and Japan. India holds gold reserves with an estimated worth of Rs 254 crore approx, and there has been a continuous increase in the number. Approximately, 6.8 tons of gold was added up in February, 11.2 tons of gold in March, 1.2 tons of gold in April, and 2.8 tons of gold in May, which boosted India’s gold reserves, to a great extent.

After India was recorded to pile up 24000 to 25000 tonnes of gold in the households in India, it is considered the world's largest holder of this precious yellow metal according to the world gold council. It will be even higher when the world's second-largest consumer of gold, i.e. India factoring 608.8 tons of gold in the Central Banks Reserve, and an import duty of 10% of the domestic value of gold stocks, will be attached. 

Due to the appetite for the precious yellow metal, the gold holdings in India had accumulated over the decades even when there was subdued demand in the current years. Even due to the fluctuating price of gold, the Gold Loan interest rates vary. However, there are some other factors for the variation of gold loans from one financial institution to another.

The gold loan schemes like monetisation, bonds, and sovereign coins represent two per cent of the country's annual consumption, but the collection is assumed to go up with the renewed push. If the essential customs duty attracted by Gold rises from the current 10%, it can discourage the import of the same and can risk the higher amount of smuggling of gold. The Indian gold demand surged by 5 per cent after the local gold prices declined, and the Indian rupee strengthened towards the latter part of the quarter. Moreover, there is a chance of improving Gold demand in the upcoming time as the traditional wedding season and festival said Akshay Tritiya is coming forth.

Also Read:- Why choose a Gold Loan before other loans 

Presently, gold loans are accessible for numerous reasons and are lent on a short term basis. For example, a gold loan is now available for farmers who are engaged in agriculture; or any allied activities like dairy, poultry, fishery, piggery, sheep, etc.; or for funding farm machinery, or any land development for irrigation or horticulture, or transportation of agricultural produce from one place to another place; and for any other farming activities which are permitted as per the guidelines of NABARD, or the Reserve Bank of India or the Indian Government.


The value, purity and weight of the gold pledged by the borrower to any Bank or NBFC decides the quantum of loan offered, which will be the gold rate per gram, depending on purity levels of gold from 18 to 24 carats. Gold to be pledged against the gold loan can include bank gold coins of only 50 grams, but primarily gold bars are not allowed to be kept as security. The interest rate on the gold loan will be the one-year MCLR rate and a further 1.25% on the total amount, depending upon the current LTV or loan to value ratio. The loan amount is repaid back within a year from the date of disbursement of the gold loan by the lending institution.


The focused product offerings and customer centric operation of the NBFCs have attracted more repeat customers than the banks. This continues even after the LTV ratio was enhanced only for banks to 90%, and the NBFCs were only allowed to bestow 75% of the entire gold value as a gold loan. As a result, the gold loan schemes that were launched especially for individuals, small traders and MSMEs for a longer period of repayment time during the post pandemic phase gained a good response. India's number 1 most trusted financial services brand according to the brand trusted report for continuous five years, Muthoot Finance has evolved as India's biggest gold financing company in terms of the loan portfolio. Shri M. George Muthoot started the gold loan business in the year 1939, primarily for people who cannot access formal credit within a reasonable time. Muthoot Finance Rebel people to meet unanticipated short-term liquidity requirements.


Recently, Muthoot Finance has launched a Loan@home service facility for their customers to get Gold loans without visiting the bank branch physically. This loan scheme has facilitated many customers to monetise their gold ornaments sitting back at their homes. All required official digital checks, verification of customers' gold jewellery, creation of the loan, generation of loan documentation and finally, the disbursal of the loan amount to customers; all will be done at the customer's premises by the Muthoot Gold loan staff at the appointed date and time.

The loan at home app made by Muthoot Finance is an app based on digital service. Customers can easily apply for a gold loan through the dedicated Loan at home online mobile app and two web portals or by logging in online.muthootfinance.com. People who find this process difficult can also contact the Muthoot Finance call centre. Muthoot gold loan online quick payment has further served customers by quick and easy payment method. This online payment method has enabled many customers to make quick payments and save time by not visiting the branch physically and depositing the monthly loan EMI. The procedure followed by Muthoot Finance providing Loans at home is straightforward and hassle-free. When the home enquiry is completed and the loan gets accepted, a video-based KYC process is followed. The process is completed after the appointment for a visit by company executives is scheduled. During this pandemic, this scheme has been the most convenient gold loan option for most people, especially the aged ones.

Read More:- GOLD LOANS ARE MORE FAVOURED DUE TO ECONOMIC DISTRESS 

Secured and unsecured loans are the two most usable forms of loans. Personal loans are examples of unsecured loans, and they do not enable you to hold your collateral with the bank in return for the funds. All you have to do is include some detail, which varies from bank to bank, and you will be accepted for the loan after a simple check. However, there are specific qualifying standards that must be fulfilled. If you don't, your loan application will be turned down. Defaulting on a personal loan will hurt your credit score, which will impair your ability to repay the money in the future.

People prefer to pay higher interest on personal loans. The market for gold and the rate at which it is exchanged decide the interest rate on a gold loan. The bank allotted to the gold loan should be over 18 carats and in the form of an ornament or a coin. It should also have a distinctive logo. Since there is no debt involved, gold loans do not necessitate as much paperwork as guaranteed loans.

Before deciding about the gold loan, an individual must examine the gold loan per gram rate and the gold value.

Reasons why we choose gold loan rather than other loans :- 

• Low-Interest Rate :- The gold loan has the primary consideration of financial cost. A gold loan is that kind of loan which comes with a lower interest rate than most different loans. As you will present your gold to the bank, they will offer a loan amount with a feasible loan repayment tenure.
  
  
• Easy and Immediate finance :- Gold loan provides instant finance to its clients. After the application, the verification process begins, and later that the loan amount will transfer to your account according to your necessities. The borrower should go to the bank or upload his/ her KYC documents online, and then he can apply for the application process. The banks or non-banking financial institutes verify the gold articles' weight and purity, and then you will get the loan within a few hours or in a day. Central Bank of India Gold loan is best known for providing quick financial help.
  
  
• Higher loan to value ratio :- An individual should be aware that he can borrow the loan amount based on the loan articles. A gold loan can accomplish every need of the person at a lower interest rate. A Borrower can get up to 90% of the market gold value.
  
  
• Four repayment methods benefit :- We all knew about the flexible repayment terms in several loans, but there are several as four repayment options in one loan as a Gold loan. If anyone is opting for gold, the loan is rested assured with the ease of repaying the loan amount. These four forms of repayment methods are- 

1. Interest payment method
   
   
2. EMI payment method
   
   
3. Upfront interest payment
   
   
4. Bullet Repayment methods
   
   

It depends on the borrower to select any repayment method as per his preference and convenience. 

• Eligibility Criteria :- To get financial help, it is the best method to get a gold loan due to its eligibility criteria. There is no provision for regular credit scores and income cash flows. The Basic requirements for gold loan eligibility include that the borrower should be an adult and have gold items against the amount offered.
  
  
• Minimum Documentation :- KYC Documents and two passport size photographs are required to fill the application form. This Documentation process does not require much time to be verified, and hence the loan is processed quicker. Central Bank of India Gold loan offers nil or minimum documentation for processing loan.
  
  

Conclusion

Lastly, a person should review the eligibility and gold loan interest rate before deciding as the gold loan offers a lower interest rate to its clients. 

Must Read:- Gold Loan as an Emergency Credit 

The monetary sum that is provisioned because the credit office is browsable to the financial organization on clear repayment terms whereby the comfort of the beneficiary is offered to and subsequently the advance sum is inferable by the repayment capacity and ability of the beneficiary whereby it's checked whether that the borrowers can care of the accurate measurement of the credit. 

Following are some of the crucial estimates that are embraced by the financial specialists to support the development possibilities of the economy and subsequently ensure that the development openings in the economy-:

1) Quite possibly the main benefits that are given through the provisioning of gold loan offices by the non-public financial business foundations are the development and making of provisioning of capital offices. The gold loan gives a monetary add up to the borrowers that they will adequately use as capital for purchasing indispensable hardware and instrumentality that might be used in transforming crude materials into completed items and administrations consequently promising development possibilities in the economy. For instance, a rancher utilizes the gold credit sum moved to his capital record to get farming hardware like water system instrumentality and work vehicles that may encourage in developing and developing the land.

2) The Economic boundaries in India are by and large accelerating the economy as a full dependence on target factors projected by the monetary exercises performed by the rural area populace of the nation of the work cooperation power of the nation is utilized in the horticultural area. So going to the needs of the ranchers and along these lines the cultivators are vital, one thing that is certainly perceived by the non-public financial cash experts in the nation thus they give sufficient credit influence and advance offices to the borrowers in the sort of gold advances.

3) After the gainful land has been developed, the harvests are isolated and brought to the processing plants which may be completing the change technique for crude materials to the completed item. At that point, the item would be sent to the discount and retail market and would later be sold in the market to procure benefits for the cultivators of the harvest. So, it's understandable from the conversation that the total chain of changing rural assembling to completed the process of cultivating item is required through the implantation of capital in the technique because the capital infuses the much-required liquidity in the organizing strategy for the gold credits and extra union of a developing assumption in the economy.

4) At times the borrowers are underneath the pause in assuming extreme acknowledgment to make up the obligation allure after they don't appear to have the option to support from now into the foreseeable future a segment of their monetary benefit towards obligation union. It also happens that they notice a larger part segment of their yearly monetary benefit to be useful by the credit specialists as normal interest installment and portion derivation. 

5) For instance, A beneficiary features a current obligation measure of creature item. He could apply for a gold advance of creature items from the private business improvement credit SBI gold loan per gram rate foundations and upon the exchange of the advance sum, the person can take advantage to take care of the current obligation and utilize the abundance sum for capital buy. In this manner, gold advances give financially suitable imminent development in the public economy of a country. On the off chance that you have any questions in regards to the gold advance, drop down your inquiry in the remark area and our chiefs will hit you up with the arrangement inside the greatest period.  

Also Read:- Fastest way to avail gold loan 

A lot of people who don't relate to Gold for Cultural or religious purposes invest in gold due to the safe nature it has. Since Gold is present in a limited quantity and money's value has also been pegged to it, its value can never be zero. Moreover, it only goes up and down by a few numbers therefore even in short term investment, It would bring much losses or profits.

Below mentioned are some reasons for taking a gold loan during an emergency -

• Fastest processing:
  The most important thing during an emergency is the instant cash requirement. Gold Loans are known to be the fastest in terms of processing. This has been made possible due to the advancement in the verification of gold machines. Now, most top lenders use XRF technology which can tell in a few minutes where the Gold lies in the purity index.
  
  
• Lenient eligibility:
  There are no occupational eligibility criteria in the case of Gold loans. You can be a homemaker, a working professional, a self-employed person and a retired person, everyone can get a gold loan. This makes it easier for anyone to avail of this loan, especially people who take care of their homes and don't get any monetary reward for that work.
  
  
• Minimal Documentation:
  You only require two documents if you want a Gold Loan. One is your address proof which can be your Aadhaar card, Ration Card, etc. And the other one is your identity proof, here also you can use your Aadhaar card or PAN card etc. Just submit these two along with your gold and get the money within an hour.
  
  
• Range of Gold accepted:
  The quality of your Gold can be as low as 18 Karats. The Gold accepted by banks ranges from 18K to 24K.
  
  
• No prepayment charges:
  Prepayment charges are those charges which would be levied in case you pay an extra portion of your principal amount before the date. Gold loans don't come with any prepayment charges.
  
  
• Readily usable:
  Since Gold is present in almost every Indian family in some quantities, it is readily available to be mortgaged and get a loan.
  
  
• Doorstep Gold Loan:
  Now a lot of banks and Non-Banking Financial companies offer doorstep delivery of services and 30 minutes Gold loan disbursal. You don't have to leave your house, the company representatives will come to your home and help you with all the formalities, check your Gold, take it, and disburse the amount.

Gold loan is a reasonable option for people who have seen a sharp decline in their businesses, some even had to shut down their businesses due to the staggering high losses. As many as one lakh small businesses were shut down due to the continual huge losses they were making. It's the most beneficial loan product for such people.

To search for the nearest branch of the financial institution near you, add near me at the end, for example, search Manappuram Gold Loan Near Me to check for the nearest branch of Manappuram.

The present times are the best times to take a Gold Loan since the Gold Prices are at an all-time high this means that the per gram gold rate has increased which also means that you will now get more money for the same amount of Gold for which earlier you would have got a lesser amount.

Conclusion -

Taking a gold loan during an emergency makes proper sense since it is the least expensive form of the other loan products such as credit cards, personal loans and other secured or unsecured loans. Moreover, the funds can be used for whichever purpose you like. So if you have taken Gold Loan for your home renovation but want to pay for your refrigerator as well, there is no restriction to it. In simple words, it provides you with the flexibility of using the funds the way you want just like personal loans and at the same time have lower interest rates and other charges.

Must Read:- What are the necessary things required to obtain a Gold Loan? 

What is better to chose: - Gold Loans from banks or non-banking finance companies?

As the prices of gold are rising, the gold loans have become a kind of lifeline for all the small businesses, salaried individuals, traders and the self-employed people who are looking for some help in case of a financial emergency. The most crucial decision that a person has to make while applying for a gold loan is whether to apply it in a bank or in a non-banking finance company. There are a lot of factors that a person has to consider before deciding one such as the interest rates, the tenure of repayment, the safety of the pledged gold, etc. The gold loan interest  are also higher in the non banking finance companies than the interest rates in the banks.

Following are some of the points which will tell you the difference between both of them and which is a better option to go for: -

• INTEREST RATES:-
  
  The rate of interest is determined mainly by how much it will cost the money lender or the bank to arrange for the funds. The non-banking finance companies do not really have an access to the large deposits and therefore, the rate of interest offered by a non-banking finance company is comparatively higher than the interest rates offered by the banks. The maximum limit of the amount of loan is around 90% of the market price of the gold pledged by the borrower. The rate of interest on a gold loan by a non-banking finance company can go as high as 29% whereas the rate of interest on a gold loan ranges from 11%-16%. Also, some of the banks offer some preferential rate of interest to the existing customers.
  
  
• LOAN TO VALUE RATIO:-
  
  The loan to value ratio is mainly the loan amount that a person can get on a specific asset deposited by him as a security to the bank or to the money lender. The fluctuations in the price of the gold have no role to play in the amount of loan that is granted to the borrower. Also, the maximum limit of the amount of loan was earlier 75% of the market value of the gold but now the Reserve Bank of India has changed the percentage and it is, now, 90% of the market price of the gold. For instance, if a person has deposited the gold articles worth Rs. 5 lakh, the maximum amount of loan that the person can get is 90% of the market price of the gold. It means that he can get the loan of upto Rs. 4,50,000. SBI gold loan per gram offers the amount of loan according to the price of the gold.
  
  

• TENURE OF REPAYMENT OF GOLD LOAN:-
  
  The tenure of repayment of a gold loan is flexible and it ranges from a minimum of 12 months to a maximum of around 60 months. When a person wants to fund some short term expenses or wants some money for a longer period of time, he can apply for a gold loan as it can help you to get the cash immediately. The tenure of repayment of the gold loan offered by the banks are 50% longer than the tenure of repayment of the gold loan offered by the non-banking finance companies.
  
  
• REPAYMENT TERMS: - 
  
  Both the banks and the non-banking finance companies are better in performance in this option. The three repayment options that are provided by both the banks and the non banking finance companies are as follows: -
  
  

1. EMIs-
   
   These are the equated monthly installments with the interest rate and a person can repay the loan in the form of these installments.
   
   
2. Upfront Interest-
   
   In this option, a person can pay the interest and pay for the principal amount at the end of the tenure.
   
   
3. Bullet Payment-
    
   In this option, a person can repay both the principal amount and the interest rate on the maturity of the loan. The rate of interest monthly but is collected by the bank at the end of the tenure of repayment.

Also Read:- Go With The Gold Loan. Go The Indian Way. 

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 

Home is where comfort lies! Everyone agrees with this, and comfort does not necessarily mean comfortable sitting and chairs; it refers to the relaxed mindset you have when you enter your home, and that only comes when you are at peace within your mind and heart. Now, that peace can be attained by anyone, not necessarily by people with luxuries at their place but by anyone with a clean house and everything correctly set up. There should be no leakages, ceilings, wire problems at your place as that can be both disturbing and risky.

So, to have a proper home, one should take care of such casualties and deal with them from time to time. Home improvement steps can do this. Home improvement is as vital as keeping our bodies fit is, but then home improvement is a giant expense that can dig big holes in our pockets and bank accounts; people avoid spending on this necessary expense due to the reason that it involves huge costs and most of the people cannot afford such giant expenses and ignore this till this expense can be delayed. Still, one should not ignore it as prevention is better than cure. So here is an easy solution for your budget problem, you can avail a gold loan for your home improvement.

The gold loan can be very beneficial for your home improvement expenses as a gold loan can come in handy whenever you require it; it does not require many formalities, and you can get a gold loan within a few minutes. The gold loan comes with a lot of benefits; let us discuss some of these benefits as below:

• Gold loans have a flexible tenure which can range between 3 months to 3 years; that is, you can always choose a tenure of your own choice which gives you an upper hand, it is a secured loan that does not make you borrow money from anyone as you can choose a flexible tenure period as per your convenience.
• Gold loans come with a variety of rate of interest that is very flexible, the rates of interest can range from 6%-17%, so one can choose the most convenient rate of interest after considering the condition of their pocket, and if you tend to have good relations with the bank or lender you can get an added advantage of that too, you might even come across some attractive schemes which might give you more added advantages, but these rate of interest depend on several factors such as the tenure, the amount of you loan etc.
• Gold loans have no processing charges in most cases; either some of the banks charge a fixed percentage on the whole amount of the gold loan, or others may charge a fixed percentage such as 1%-2% of the processing charges.
• Gold loans don’t have any rigid criteria for eligibility for the age factor; it can be a minimum of 18 years and a maximum of 65 years and can vary a little up and down depending on different banks and money lenders.
• Gold loans don’t make you crazy with documentation requirements; they are straightforward; However, in the process of document verification, they only ask for a few essential documents that can be easily arranged.

Many banks offer gold loans, and with gold loans, there is an added advantage that you do not have to use the loan amount for a specific purpose; there are many benefits of the gold loan if taken with the proper steps from the right organization.

SBI gold loan is provided by the SBI Bank that is trusted with its services of providing gold loans as they offer gold loans on easy terms and conditions. They offer flexible tenure and a manageable rate of interest on gold loans. They require minimal documents for approval of the loan such as identity proof, residency proof, income proof and some additional documents such as passport size photographs etc. one should carry these documents after verification and carry both the originals as well as the photocopied documents so that there is no delay in the evaluation of the documents.

Read More:- Ways To Repay 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 

In today’s world, no one knows when the need for quick funds arises and for that, a gold loan is the best solution as a gold loan can get you the fastest funds to meet your requirements. But there are certain things or key points that one should keep in mind before availing of a gold loan as with the growth in the market, the risk has also increased, so it is important that one should be cautious and keep important points in mind before taking a gold loan. But now, people have come to realise that gold kept idle in bank accounts can be rather used to get quick funds whenever needed. As gold loans have emerged as one of the most popular ways to secure quick finance. In addition, gold loans can be used for any purpose unlike other types of loans that have a specific purpose.

So, Let Us Discuss Some Of These Important Points:-

• Loan Amount:- As a gold loan is a secured loan, the amount of a gold loan will depend on the gold that you pledge as collateral. RBI has chosen the loan-to-value ratio as 75% of the total value of gold that is pledged. The amount of loan that you will get will also depend on the lender you choose to get it from.
  
  
• Interest Rate:- The interest rates of gold loan varies according to the lenders and depend on a lot of factors such as loan amount, LTV ratio, loan tenure and many other factors. For example, if the LTV ratio is high, the lender will tend to charge a higher rate of interest to compensate for their risk. Therefore, one should compare the gold loan interest rate from secured as well as an unsecured loan to check the most suitable among them.
  
  
• Processing Charges:- Usually gold loans have zero or minimal processing charges that are as low as 1%-2%, it depends on the bank or lender how much fees they will charge, some might charge a fixed percentage whereas others might charge some percentage of the whole amount of the loan.
  
  
• Loan Tenure And Repayment Tenure:- The gold loan is a short term loan with a flexible tenure that can range between 7 days to 3 years. This can vary from different lenders and banks. Banks and lenders also offer a variety of repayment options along with the usual monthly instalments mode. Borrowers can choose to repay the principal amount at the end along with all the monthly instalments or they can pay monthly instalments every month and the principal amount at the end of the tenure. A person can even calculate his monthly instalments prior to applying for a loan by using the EMI calculator to know if he will be able to repay the instalments or not. One can choose the one according to their convenience. For example, the EMI system will suit a salaried person with regular monthly income and the non-EMI system will suit self-employed workers who do not have a fixed source of income per month.
  
  

Now, these are some of the important points that one should keep in mind before taking a loan as one should make sure that every condition is well-suited for him before stepping into taking a gold loan. Now,if we talk about the lenders or banks, one should make sure that they avail gold loan from a trusted source as you should have trust in the bank or lender you pledge your gold with. So, here is a solution to this, Muthoot Finance gold loan. They are well-known for their years of service in the field of lending loans and are trustworthy with your pledged gold. They offer you attractive deals under gold loans from which one can choose what he finds to be the most suitable. They have easy terms and conditions with minimum document requirements. So, one can avail a gold loan from them.

Gold has become an important asset over time. One can easily use gold as a security against loan to avail gold loan. The documents required for applying for a Gold loan are Aadhar Card, Valid Driving License, Valid Passport, Voter’s ID Card, Salary slip, income tax return documents, employment proof, bank statements, income proof and other documents as asked by the lender. While applying for a loan fill out the application form carefully. Try to avoid errors for fast approval of the loan.

IIFL gold loan can be applied online as well as offline. One can also get various schemes on gold. IIFL gold loan charges reasonable interest rate and processing fees on gold loan. The internet rate starts from 9.24%. You can also choose any payment option as per the convenience as the IIFL loan offers various payment options. For more information regarding gold loan can visit the official website of IIFL gold loan. Getting a loan is a big deal. The applicant should be careful while applying for a loan and also they should try not to share any sensitive information online to avoid loans. One should always take a loan from a verified lender to avoid any kind of loss. 

Follow below listed tips to save yourself from fraud lenders :

Check online :- 

Before applying for a loan check online all the information regarding the chosen financing companies. It is always recommended to take a loan from a verified bank or non-banking financing companies(NBFCs). Guard all the information of the chosen financing companies online before filling out the application form. 

Monitor your account :- 

Another very much crucial step is to monitor your account daily. Try to install a mobile banking app and check your account balance, account activity and transactions. While applying for a loan always keep a close track on all your account activities. Report your account if you find anything suspicious. 

Check your credit report :-

Always try and check your credit report timely. Review your credit report properly. Beware of anything suspicious on your credit report. 

Filter your phone calls :- 

Always try to filter your phone calls. Try to avoid phone calls and messages from a fake number. Do not answer any non-essential message. Keep a closer look on phone calls and messages and try to avoid anything suspicious. 

Don't share your bank information :- 

One should not try to share any kind of bank information to avoid loss. Do not share your bank details to anyone from your phone or social media. Bank details should be kept like a secret without sharing with anyone. People can avoid any loss by not sharing the personal bank information to a non verified lender. Always be cautious and careful of the activities you perform online. 

Secure your internet connection :- 

This is another important point before applying for financing help. Try to secure your internet connection to avoid any kind of loss. Protect your Wi-Fi by setting strong passwords. Also be cautious about the information you are sharing online. Protect yourself from fraud lenders by not sharing any sensitive information online. 

Report anything suspicious :- 

An applicant should carefully and quickly report suspicious activities. If you find anything suspicious happening in your account report quickly to avoid further loss. And also if you find the behavior of the lender suspicious, report him quickly.

Conclusion :-

These Days many fraud cases related to lenders are being registered. One should be careful while availing loan. People should also be aware of the lenders and research about them carefully online. One should try not to share any information or bank related details to any lender without verification to avoid loss. Monitor your bank account on a regular basis. Avoid any spam messages or calls received. Protect yourself from fraud lenders by protecting your internet with strong passwords.

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