Blog #Gold Rate

What is a gold loan?

Gold loan is often called a secured loan, it is always at a lower interest rate than the other loan options, because of lower interest rate, the repayment amount is low, therefore there’s a less burden on the borrower. This is the reason why people choose a gold loan over others. Based on the current market value and the current market value and the quality of gold, the gold amount offered in a proportion of gold, usually up to 80%. Gold loans are short-term loans that might last anywhere between a month to a few years to repay. This form of loan may be a smart alternative if you need money for an immediate need and expect to be able to repay it within a short period of time. 

Why choose a gold loan ?

Gold loans provide a lot of advantages such as a lower interest rate. Having lower interest rates than personal loans as they're a relatively low-risk loan for lenders because they are using your gold as security, these process quickly and don't need any proof. Gold loans can be a smart option for consumers who are looking for a loan for a short term , and it also brings the gold to use because keeping it in a bank is better than keeping it in the houses. 

When compared to other loans, gold loans can be granted faster Because the gold is used as a collateral, banks are already at a lower risk of losing money in the event of a loss. As a result, banks are more likely than personal loans to approve your loan quickly, making it a great option during times of need. Manappuram Gold Loan helps the customer to lower the risk of loss by providing some of the policies like: 

How might a gold loan help you lower your risk of losing money? 

Repleading- The number of times the same piece of jewellery, gold coins, or bars can be pledged is limitless. This permits clients to take out multiple loans on the same asset. In contrast to personal loans, which are dispersed based on the customer's ability to repay the loan, gold loans have this feature.

Bullet Payments- The most significant benefit of a gold loan is the ability to pay the loan principal and interest in one lump sum rather than the more common method of repaying other types of loans—equated repayments, or EMIs. This provides with a lot of options or ways to repay which takes the burden off the borrower, thus making it easy and thus loss free. This feature encourages small-business owners and traders who are suffering a severe economic shortage to take out gold loans rather than alternative loan options with monthly EMIs that begin the month after the loan is approved. 

As we've seen, gold companies are effectively securitizing their receivables in the form of short-term gold loans in order to generate liquidity. Securitization is a viable method for generating liquidity in small doses, but it has apparent risks when it becomes the primary source of capital for expansion, Thus decreasing the risk of losing money.

Conclusion- 

Gold loans being one of the most secured loans available with low Gold Loan Interest Rates, reduces the risk of loss for both the lender and the borrower, being in Indian household shows how important gold is for the people so the gold rates generally don’t fall therefore minimizing the risk of losing money.

Also read this: Gold loan for medical emergencies 

Gold is one of the top priorities of the average Indian household, and people like to keep their money in this precious metal for long periods. According to the World Gold Council (WGC), Indian households own between 22 and 25 tones of gold. The rural households account for the majority of this. Companies have been compelled to close units temporarily or retrench personnel as demand for products and services declines owing to the epidemic and the lockdown, which has lasted several weeks. For many people, the global economic recession has resulted in a loss of income and a lack of finances. As a result, individuals are turning to one of the most valuable assets to receive emergency finances to deal with the current situation. Small firms and entrepreneurs are using gold loans to relaunch their operations and bridge the financial gap, according to studies. Furthermore, because gold prices are rising, borrowers can access larger quantities through gold loans. 

• Interest Rates on Gold Loans 9.50 percent to 29.00 percent.  
• Secured Loan is the most common type of loan.   
• Time to Process: 24-48 hours.     
• Loan Amount Maximum.     
• Gold can be worth up to 90% of its face value.        
• Loan terms range from one day to nine months.

How to make use of your gold You can get a gold loan if you have an urgent need or if something unexpected happens to you, such as losing your job or your business. Convert your gold into little ornaments and borrow money against them on a short-term basis. Over the previous few months, gold prices have also risen dramatically.

• The LTV on non-agricultural loans has been enhanced from 75 percent to 90 percent by the RBI. This service will be available until March 31, 2021.
•  This will also assist banks and non-bank financial institutions in expanding their gold loan books.
• As the demand for gold loans has increased, more NBFCs have stepped in.

Features of a Gold Loan

Purpose: A Gold Rate can be used to fund a variety of needs, including educational expenses, medical emergencies, vacations, and so on.

Security: The gold that has been pledged with the bank or financial institution works as security or collateral for the loan amount.

Tenure possibilities: Tenure options might range from three months to 36 months.

Fees: Other costs and costs that may apply to a gold loan include processing costs, late payment costs/penalties for not paying interest, appraisal fees, and so on.

Advantages of a gold loan For the following reasons, gold loans are a popular financing option for satisfying short-term company needs:-

Quick Processing: Gold loans are usually disbursed within a few hours of the application being submitted. As a result, it is the most effective way to raise donations quickly. In fact, you may get a gold loan in less than 45 minutes.      

Rates are low: When compared to other loan choices, such as personal loans, the interest rate on a gold loan is lower. For example, has low interest rates on gold loans.     

Documentation is minimal: Another benefit is that you only require valid identification and proof of address.

Processing fees: These are normally quite low. While some lenders may conceal a few hidden fees that may come as a shock later, it follows a transparent process and reveals all prices. They charge a small processing fee of 1.5 percent plus GST. In addition, they impose a valuation fee of Rs 250 for loans up to Rs 1.5 lakh and Rs 500 for loans over that amount.

Flexible tenure: Muthoot Finance Gold Loan come with a variety of repayment options, ranging from six to 24 months. Depending on your financial status and company objectives, you can choose the payback period and alternative. Statement/ Recommendation Gold loans are the easiest sources to tap into right now if you're seeking for a strategy to get quick cash to get you through the current cash constraint. Apply for a Gold Loan today and take care of your business, unforeseen costs, and bill payments on your own.

Also read this: Benefits Of Gold Loan 

Gold has become important assets in Indian households. Many people in times of crisis take gold loans from various banks and non-banking financing companies(NBFCs). Gold loan is a very popular category and one of the oldest forms of loan. Gold Rate may vary from time to time. While availing gold loan one should always keep a close check on the market value of the gold. The best time to take a gold loan is when the market rate of the gold is higher as it will increase the loan amount. Gold Rate impacts the loan amount so it should be monitored carefully before taking out the gold loan. 

IIFL Gold Loan gold loan can be availed easily from the nearest branch or the online website of the bank. IIFL gold loans can be availed and approved easily with the required proper documentation. The loan amount for a gold loan may start from as low as Rs.3,000. The IIFL gold loan offers tenure up to 24 months. The interest rate on the gold loan starts from 12%. It also offers a very flexible repayment option as per the convenience of the borrower. 

Gold loans can be really beneficial for business purposes. Gold requires just minimal documentation and it can be the best option in times of financing crunches. Gold loan for businesses can be a really good option and is a really smart idea. Gold loans can be beneficial in businesses in more than one way. The reasons are listed below:- 

• Fast approval and disbursal - Gold loan can be processed and funded very easily in a short amount of time and it is very much advantageous to take a gold loan in times of financial difficulties and also while starting a business. The gold loan can be taken up to 20 lakhs or more depending on the bank which is very beneficial for businesses. It can be approved and disbursed within 30 minutes of the application.
  
  
• Facilities to check loan eligibility - one can check the loan eligibility online without wasting much of the time. The loan can be provided on the basis of the amount of gold ornaments given and its purity which must be at least 18 carats. You can also evaluate your loan amount with a gold loan calculator.
  
  
• Several repayment options - One can choose the repayment option as per the convenience as lenders provide different options for repayment.
  
  
• High loan to value - loan to value against gold is quite high and very good for the borrower. For businesses it is ideal as the loan to value is quite good. Depending upon the purity of the gold and weight of the gold you can be offered a good amount of loan which. And be very much beneficial for the business.
  
  
• Minimal documentation - The best thing about getting a gold loan is that it requires very minimal documents like identity proof, residence proof, age proof, salary slip, income tax proof, employment proof, credit score and more as asked by the bank. 

_{Conclusion :-}

Gold loan in today's time is one the most convenient option. Everyone prefers to get gold loans in times of difficulties. In India, gold loan is not only popular in urban areas but also in rural areas. People from rural as well as urban areas consider taking a gold loan in times of difficulty. The gold loan can be used for a variety of purposes as per the convenience of the borrower without any restrictions. One can get a gold loan from any banks or non-banking financing companies(NBFCs). Getting a gold loan is not a big deal as it can be availed easily.

Also read this: Why Has Gold Loan’s Demand Increased Over Time? 

Gold is the most demandable metal in the world and it is highly volatile. In India gold has more value because gold is just not metal it's like a god. and God gives you the opportunity to take the money from the bank and pay it later on the basis of your EMI. Should we avail of Gold Loans yes because there are many benefits about gold loans and other types of loans? There are some factors to choose a gold loan above any other type of loan. Gold is easily available in India and there is less paperwork required to approve the gold loan and gold loan depends on the current gold rate in the market.

Some benefits of gold loan are as follows:

1) Fast Processing: Since gold is physical as collateral, banks and institutes can easily provide such loans. For banks, approving the gold loan is an easy and safe option since they can easily sell the gold in case of borrower defaults. And requires that all processes take less time.

2) Pay interest only option: The gold loan available in a new feature that allows the borrower to Pay Interest Only While repaying the loan. The principal components can be paid at the loan tenure.

3) Low-interest rate: since gold is a very secured loan, banks charge the loan interest rate as compared to other loans available in the market. The interest available for the gold loan is between 10% to 13% just like Manappuram gold loan, it gives a 9.90% interest rate.

4) Zero processing fees: There are many NBFCs and banks that offer zero processing fees for the gold loan and provide instant gold loans.

5) Minimal Foreclosure charges: Some lenders like Manappuram Gold Loan and banks charge zero or minimum prepayment charges of 1% of the gold loan.

6) No income proof required: In the market, many banks and NBFCs require no income proof on gold loans that makes the process simple and fast.

7) Security of gold loan: The banks and lenders’ responsibility to maintain safe gold. its normally kept in the vault and therefore, the borrower doesn’t have to worry about the gold.

Gold loans are considered safe investment options. Physical gold may not offer great yield value or it may be less, however, with gold loans the borrower can make use of the cash for various expenses. There are many banks that offer low interest rates to gold loan borrowers. 7.35% for 36 months for the loan tenure. a gold loan can be a better option as compared to a personal loan if the borrower pays the loan in a shorter duration. These are also known to have lower interest rates. It is easy to get a gold loan from the bank either if such services are available, or offline. The online application can be made through the banks or lending institute's official website.

Gold loan ways are better than personal loans because it depends on the person to person, which varies in the case every borrower requires according to the borrower's condition. Therefore banks and lenders make loans for every person such as for the educational purpose is education loan, for buying a home is home loans and different types of loans. If you want a loan for small work and short duration definitely gold loans are much better than the other type of loan. Hence many people take gold loans for their small work and the process of taking loan is very fast and smooth. I think every loan is good according to personal requirements and it is easy to pay the loan. Many people think loans are not good but if you repay the loan it’s good and makes fulfillments of your ideal values though. Gold loans make your life easier to achieve your goal and complete your dreams. Taking a gold loan is the safe option because the bank keeps the physical gold in a safe vault and the bank is disappointed in their customer .But while taking the gold loan, get the full knowledge about the interest rate and read all documents carefully.

Also read this: Gold Loan For Paying Hospital Bills In Covid