Blog #Gold Loan Calculator

They have a lot of misconceptions about gold loans and how they function. If you're in the dilemma of taking out a gold loan, read on to clarify some common misconceptions about gold loans. Individuals or applicants can use the Gold Loan Calculator to figure out how much interest they would pay on a gold loan they wish to take out against their gold or gold jewellery. Their gold or gold ornaments will be held as collateral or security by the lender, bank or NBFC until the loan is fully repaid.

1. Obtaining A Gold loan Is A Lengthy Process:- When it comes to gold loan myths, this is the largest one of them all. The only loan that you can receive on the spot is a gold loan. Banks and non-bank financial institutions (NBFCs) authorise gold loans and disburse loan funds within a day, if not an hour. So, if you're in desperate need of cash, a gold loan is the way to go.
   
   
2.  You Won't Be Able To Receive A Gold Loan If You Have Ancient Traditional Jewellery:- Many people believe that banks and non-bank financial institutions (NBFCs) exclusively lend money for new and recent gold jewellery. As a result, despite having many old gold ornaments, they would not ask for a gold loan. However, let us clarify this myth for you: banks do lend money on older gold jewellery. To qualify for a loan, the gold must be pure and at least 18 karat.
   
   
3. Only And Only Jewellers Can Offer The Gold Loan:- Many big banks and NBFCs now provide simple gold loans with attractive interest rates. As more people began to invest in gold, numerous banks and non-bank financial institutions (NBFCs) began to offer gold loans. Few non-bank financial institution (NBFIs) specialise in gold loans. Taking out a gold loan from a reputable bank or non-bank financial institution is always safe and secure. Those who believe that only jewellers can offer gold loans and are concerned about their authenticity might apply for a gold loan from a bank or non-bank financial institution ( NBFC). The Bank of Baroda Gold Loan offers secure on-the-spot processing, flexible repayment options, and more.
   
   
4. Your Gold May Be Discreetly Switched:- To secure a loan against your gold, you must keep it with a bank or NBFC. The bank or NBFC will return your gold jewellery if you repay your loan within a specified time frame. Many people believe that your ornaments are replaced with fake decorations by money lenders. As a result, many choose not to take out a gold loan because they are concerned about the protection of their precious jewellery. However, this is not the case. Banks and non-bank financial institutions (NBFCs) have particular security and locker systems in place to secure your gold loan held as collateral. It will only be deleted once you have completely paid off your loan. So you may confidently hand over your gold to a bank or NBFC for a loan.
   
   
5. The Interest Rates On Gold Loans are Incredibly High:- Depending on the type of loan, banks and NBFCs offer different interest rates. If the loan is unsecured, the interest rate is high, but the interest loan is pretty small if the loan is secured. A gold loan is a sort of secured loan. As a result, banks and non-bank financial institutions (NBFCs) do not charge exceptionally high interest rates. The interest rate on gold loans may vary between 10.26% and 26%. The interest rate varies depending on the loan borrower's characteristics. A gold loan calculator can assist an applicant in calculating the approximate EMI that must be paid to repay the borrowed amount. Applicants can try out the different interest rate and repayment terms offered by top financial institutions using the Gold Loan EMI calculator.

Read More:- GOLD LOAN FOR PURCHASE SOMETHING 

A gold loan is a loan in which the borrower takes a loan from the bank and gives their gold as the collateral. In a gold loan, the borrower is not required to submit any other collateral to the bank other than the pledged gold ornaments. After the borrower gives his gold ornaments as collateral, he is provided with a gold loan. Gold loans are provided by various banks these days. Gold loans are considered to be safe and quick loan. Many people are opting for gold loans.

Gold loan is not a new concept in the Indian market. The gold loan started from the southern part of the country. In today's time, gold loans have occupied a special place in the Indian market. Today, we see many advertisements from many gold financing companies informing the public to keep their old ornaments in safe custody and provide a loan in return. India is a country with maximum gold users, so people prefer gold loans. Gold loans were considered as short term borrowings and were no interest leveraging activity back at that time. Back then, Muthoot finance and Manappuram finance were the two most important gold loan companies established in 1939 and 1949. A Gold loan calculator can help you in calculating your loan EMI.

Gold loans have occupied a special place in India. It is considered an important asset and immediate source of cash, especially for the rural households in India. Gold loans have become very popular in the cities as well as the rural areas. The gold loan still has the growth potential with increasing small business. The gold loan originated from the southern part of the country states like Tamil Nadu and Kerala. The money lenders from all over the country started collecting gold in return for money. All over the country, the landlords, shroffs and Marwaris from other parts of India have traditionally lent villagers money against their gold for special occasions like marriage after sometimes few banks in India established the whole process of gold loaning with proper norms. After establishing proper norms, the banks make gold loaning easy. Gold loan companies started accepting deposits from the public, also many local societies that had a few individuals who controlled the whole process like how and to whom the loans should be given. SBI gold loan provides a very low interest rate.

Gold prices are touching heights in India every day. Many gold consumers who hold gold in reserve always consider taking gold loans to meet their credit requirements, and Indian financial entities have a host of options on offer.

Pros of taking gold loans:

• Existing gold ornaments can be used for assets.
• The customers can use the same piece of jewellery or gold coins or bars to get loans. This helps the borrower to get loans multiple times with the same gold jewelleries.
• The flexibility to repay the loan principal. This encourages the small businessmen and trader to take the loan who faces any kind of loan crunches.
• Faster processing- gold loans do not even require a credit score for loan approvals. For availing of a gold loan, the process is short and easy. It has lenient eligibility criteria and minimal documentation.
• Many banks provide gold loans at zero processing fees.
• Income proof is not needed. It makes it easier for the customers. 
• Gold does not depend on the credit score. So, a credit score is not required.

Conclusion

Gold loans have become popular by the time. Many people in India prefer gold loans. People living in cities and rural areas prefer to take a gold loan instead of any other loan because getting a gold loan is much easier. A gold loan is a secured loan. It also comes with a lower interest rate. Earlier, there were no proper norms of gold loans, but banks provide gold loans with appropriate norms and established rules to get loans quickly with time now. People nowadays get gold loans in less time with very little documentation. Over time gold loans are getting popular. In coming times also the customers of gold loans will increase.

Also read this: Gold Loan For Medical Emergencies