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Gold loan is an important asset for every individual. Earlier, gold was considered a valuable entity but banks didn’t consider it to grant loans on gold. But now is the time when banks and NBFCs realized that gold loans will come out as an essential term that is going to benefit both borrowers and lenders.

Many banks and NBFCs provide gold loans to their customers. Most NBFCs provide the only gold loan. RBI announced to increase the loan capacity by increasing the valuation of gold from 75% to 90%. 

Just like a bank named Karur Vysya Bank gold loan , the bank offers a good quality of amount leading to 100 percent customer satisfaction. It leads to benefits for customers with less paperwork framed by banks.  

You need to know about the gold rates where you live. For example, if you stay in Chennai and you want to avail gold loan, then you need to be aware of the gold rate in today.

You get flexibility in the repayment method. This helps you to get rid of overburdening yourself from heavy EMIs. The best option is decided by you. one can go with a bank as an option if he/she has good relations with the bank. The bank on the other hand lends money with ease because the risk factor is less in the gold loan as compared to the personal loan as gold is considered as collateral or security till date when the whole amount is not returned to the bank by borrowers. 

Benefits of availing of a gold loan:

• Faster processing: Since gold loans are backed by actual gold, bankers are generally willing to lend money. Lending against gold is safe for banks because they can sell the gold if you default, so the loan is usually disbursed within a few hours. This is because the turnaround time is shorter.
  
  
• Option to pay interest only:  Gold loans have a special aspect in that the borrower can pay only the interest portion of the loan and the principal balance can be charged at the time of the loan's closing.
  
  
• Lower interest rate: Banks charge lower interest rates on secured loans than on unsecured loans like personal loans because they are secured. The interest rates are usually in the range of 13 to 14 percent, while personal loans typically begin with a 15 percent interest rate. The gold loan interest rate can also be lowered if you bind another protection as collateral.
  
  
• No processing fees:  Since these loans are issued instantly in exchange for gold kept as collateral with the lender, many NBFCs and banks do not charge processing fees.
  
  
• Foreclosure charges are low or non-existent:  Some lenders do not charge prepayment fees, while others charge a 1% prepayment tax.
  
  
• No-income proof required: Since the loan is protected against the gold to be kept with the bank, lenders rarely ask for evidence of profits.
  
  
• Bad credit history is not an issue: Unlike other loans, where the loan amount is determined based on the repayment capacity and credit history, the situation with gold loans is different. Since the gold is used as collateral, the lenders are unconcerned about the principal component and hence do not investigate the borrower's credit history.
  
  
• Safety of gold: The lender is responsible for the gold's safe. You don't have to think about it staying safe in its vault. You will get your gold back after you have paid off the loan.
  
  

CONCLUSION:

Gold is a better option amongst all other options. The only thing you need to do is choose the best option for yourself which can be done with some proper research work.

Gold loan has always been an important part in uplifting people in difficult times. People all over the India urban as well as rural area have faith on gold loan as it one of most safe and secured loan. Gold Rate Today for 10gm of 24 carat gold is 48,680.00 Indian Rupee. This is the best time to invest in gold as there is an increase in the market price of the gold. One can apply for a gold loan online at the website of the bank or non-banking financing companies(NBFCs). 

Dena Bank Gold Loan can be applied easily online at the website of the bank or offline at the nearest bank branch. The bank offers amazing schemes on gold loans. The application for a gold loan is easy and it requires minimal documents. The required documents 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 demanded by the bank. The bank is recommended for getting a gold loan. 

Applying for a gold loan has various advantages. One can even apply for a gold with a bad credit score. While availing a gold loan credit score is considered by various banks and non-banking financing companies(NBFCs). Gold loan is a secured loan and it only requires gold ornaments and coins as a security against the loan. In gold loan credit score and report is not considered important. It is preferred by so many people in times of emergencies as it doesn't require a good credit score and can be availed easily without any hassle. In gold loan CIBIL scores are less desirable. A gold loan can help in increasing the credit score of a borrower if the repayment of the loan is done timely. One can easily get a gold loan at a minimum cibil score without any difficulties. 

The various benefits of the gold loan is listed below:- 

• Quick processing:- In modern times getting a gold loan is easy as the processing time is faster compared to earlier times. The processing of the hold loan required 24hrs to 72hrs. One can also apply for a gold loan from the online website of the financing company for the faster processing of the loan.
  
  
• Loan disbursal:- After the loan documentation verification the loan amount is sanctioned in the saving account of the borrower. The amount is sanctioned in 72hrs after the verification of the documents and evaluation of the gold.
  
  
• Ideal for emergencies:- Gold loan can be used for meeting various daily requirements and hence it is considered to be ideal for emergencies. Various people all over the country apply for a gold loan in the times of emergencies.
  
  
• Loan upto 50 lakh:- one can easily get a loan amount upto 50 lakh. This is very much advantageous for the applicant. One can easily get a higher amount of the loan sanctioned in the savings account. It can be very much beneficial in the case of emergencies. The loan amount depends upon the market price of the gold. The higher the market price the higher will be the loan amount availed.  
  
  

Conclusion :

Gold loan can be availed even if the applicant has a bad credit score. Being a secured loan it only requires gold ornaments, bars or coins as a collateral against the loan. Most of the financing companies do not consider the credit score or report of the applicant. As the only thing desired by the financing company is high purity and amount of the gold given. One should visit online website or app of the preferred bank for applying for a gold loan. 

Also Read:- GOLD LOANS HUGE DEMAND 

Now, if we talk about gold loans, there are certain prerequisites that need to be fulfilled before getting the loans sanctioned. It is the same for every bank and institution to ask for these documents which means that before showing a certain few documents and getting them approved you cannot move further as they come under the eligibility criteria which needs to be fulfilled to get the loan. Now, these eligibility criteria vary as we obtain different loans. Some require some documents whereas others might ask for certain other documents for getting the loan.

 Let us mention some of the eligibility criteria that are important to be followed:

There is a certain age criteria which needs to be followed by the applicant that is, any citizen above the age of 18 years and a maximum of 70 years will only be considered eligible to apply for the loan against gold, and in case the age of the borrower is above 70 years then, there must be a co-borrower. Then the profession of the applicant is also taken into consideration, such as most banks and institutions offer jewelry mortgages to businessmen, salaried employees, self-employed people etc. Then there are some eligibility criteria as to the purity of the gold that you will be pledging against the loan amount. Banks and lenders generally prefer accepting gold of 24 carats or 22 carats, and a few of them might accept 18 carats of gold, but that decreases the amount of loan that you will be receiving. The gold is generally offered as per the gold rate today. These are some of the criterial that need to be followed to get the gold loan approved.

Now, there are some criteria in respect to the documents that need to be submitted to get the gold loan sanctioned. These documents are identification proof such as Aadhaar card, pan card, voter ID card, passport etc., then address proof such as the driving license, rent agreement, passport or utility bills that involve electricity bills, water bills, telephone bills, gas bills etc., income proof can also be asked for in the form of salary slips, bank statements, form 16 etc. and some additional documents such as passport size photographs of the applicant etc. and everyone should always carry as the original documents along with the photocopied documents as the bank or lender can ask for any of the two for evaluation. In some cases, a few documents are asked to be kept by the institutions so that they have proof of the borrower.

These are all the eligibility criteria that need to be followed to get the gold loan sanctioned. Every bank or institution needs to fulfil these criteria in order to get a gold loan. Apart from these criteria, a person should see that he is able to fulfil the other requirements, and his pocket allows him to get the loan. There are certain requirements such as the tenure and the rate of interest which need to be seen before taking the loan as they play a major role in the loan process, and these need to be checked before taking the loan.

One of the loan options which makes your process easier by getting your loan on simple conditions is the gold loan at Future capital. These loans are easily available at reasonable terms and conditions. They offer you quite a flexible tenure along with a rate of interest of your choice that suits you and your pocket. They ask for documents that can be easily arranged, most of which are mentioned above. And now, they also provide the facility to apply for online gold loans, which makes it an easy task to get the loans sanctioned with a few clicks of buttons.

Must Read:- Not Many Significant Variables That Influence Gold Costs 

Gold loans are secured loans that are issued against collateral and come with quite a low rate of interest that is very attractive. There are many benefits of gold loans such as:

• Eligibility criteria: In case of gold loans, eligibility criteria is important in quite a few areas such as age which should be between 18 years to 75 years, then the profession of the applicant is also very important criteria for the gold loan, credit score is not that important when it comes to applying for a loan due to it being a secured loan.
  
  
• Rate of interest: Rate of interest is the factor that makes borrowers choose gold loans over other types of loans because gold loans require a low rate of interest. The rate of interest under gold loans range between 9.24%-26% and can vary according to different banks that apply for the gold loans. Usually the amount of the loan is given on the basis of the gold rate today. And banks and lenders only offer up to 90% of the total value of gold during that point of time, in the market.
  
  
• Processing fees: This is the charge paid by the borrower to the lender for the time between the submission of the loan application and the bank’s approval of the application, this is the fees that lenders charge for checking the application and documents with it. Now, these fees depend on different banks and can vary from bank to bank. Some might charge a processing fee as low as 1%-2% while others might charge it in the form of a particular percentage on the whole amount of the gold loan.
  
  
• Repayment tenure: Every loan has a tenure which is kind of an expiry date and within that tenure the borrower is liable to repay the principal amount along with the monthly installments. Now, since gold loans are short term loans they can be repaid within a time period of one year. And one can check their monthly installments through the EMI calculator which is provided on the website of every bank so that they can calculate their suitability of being able to pay back the principal amount along with the monthly installments within the stipulated time.
  
  

Now, these are some of the benefits that gold loan offers over any other type of loan and gold loans can be used for any purpose unlike home loans etc. which must be used for the work they are available for. These are some of the reasons why borrowers' first choice is a gold loan and not any other type of loan.

Now, there are many banks and lenders in the markets that offer you a gold loan but not every bank and lender is trustworthy with your gold pledged with them. So, one should make sure that they should take a gold loan from a trusted bank only. And Yes Bank Gold Loan is the solution to this as they offer loan with minimum documents some of which are Identity proof, that includes, PAN card, driving licence, voter ID, Valid passport etc., Address proof, that includes, electricity bills, water bills, telephone bills, Aadhar card, PAN card, driving licence, voter ID, Valid passport etc., Other necessary documents such as passport size photographs, proof of 5 years of business continuity (for self employed individuals) etc. One should always make sure to carry the original copy of the documents along with photocopied documents so that the process can be done without any delay or mistakes. They also provide flexible tenure and low rates of interest with attractive offers. In addition, your gold is safe as they are a trusted bank which has provided services of loans for years.

Read More:- Best Way To Choose When Avail Gold loan 

Loans on gold are secured loans as the lender keeps valuable articles in the possession of the creditor, so that if the loan amount is not repaid the creditor can sell the goods to realise his money. The best part of a gold loan is that there is no requirement to submit any other security as a collateral except the gold itself. The bank charges interest rate as per the loan amount and the gold pledged, and once the debtor repays the entire loan amount along with the interest, he gets the pledged gold back.Gold is such a valuable item whose value increases almost every day; so, every family does invest in gold. Almost every person who is competent to contract and not otherwise disqualified by any other law to which he is bound; is eligible to get a gold loan. People from any profession, government or private, self-employed, businessman, trader, contractor, farmer, etc all are eligible to get a gold loan. The documentation process is also very convenient nowadays. All the borrower needs to have is a bank account and KYC documents to establish his identity. Identity establishing documents like Voter card, Aadhar card, PAN card, Driving license, Passport all are accepted.

This asset helps you at your worst times of financial crisis.The old rate varies day to day, and generally the value inflates. The Gold rate today is 48200 INR for 10 grams of 24 carat pure gold in Kolkata, West Bengal. In Delhi, it is 47000 INR for 10 grams of  22 carat gold and in Punjab it is 50490 INR for 10 grams of 24 carat gold. Gold is an asset which provides financial cover at the time of geopolitical and macroeconomic uncertainties. In India, buying gold is an age-old tradition people have been following since old times. We buy gold on auspicious occasions like in Dhanteras, Dussehra, Navratri, Gudi Padwa, Makar Sankranti, Akshay Tritiya, and other regional occasions.In India, almost every bank offers gold loans to their customers with interest rates varying from 7.35% to 12.5%, minimum processing charges.

Another reason why people should opt for a gold loan is the rate of interest. The interest percentage of gold loans starts from 9.5%, on the other hand the personal loan interest rate starts from 10.25%, as these loans are mostly unsecured. So, taking a gold loan seems a more convenient option than a personal loan. Moreover, the borrower does not need to have a credit score to become  eligible for a gold loan from any bank. Therefore, the loan gets disbursed within a few hours of applying, so a gold loan is the best option during the time of emergencies.

A detailed comparison of gold loan interest rates in different banks are provided below:-

1. SBI Gold Loan:- The bank offers gold loan at the interest rate of 7.5% for the period of upto 3 years, with processing charges of  0.5% of the loan amount borrowed.
2. Canara Bank Gold Loan:- The bank offers gold loan @7.35% for the period of 12 months with processing charges of 0.5% of the loan amount borrowed which can be minimum Rs. 1000 and maximum Rs. 5000.
3. ICICI Bank Gold Loan:- This Bank gives gold loans @9% for a year and the processing fees is 1% of the loan amount.
4. HDFC Bank Gold Loan:- This instituion gives gold loan @ 9.5% for upto 2 years with 1% of loan amount as processing charges.
5. Manappuram Gold Loan:- This financial institution gives a loan @9.9% for 3 months with Rs 10 processing fees to be paid at settlement time of the loan.
   
   

These banks mentioned above have low rates of interest and provide you with sufficient information to choose the best suited option for you according to your need.

Also read this: What are the necessary things required to obtain a Gold Loan? 

There is no specific timing or day to avail of a gold loan. Gold loans are available 24/7 any time 365 days around the year. This is a type of lending in which the lender gives a loan to the borrower at an interest rate. The borrower gets a lump sum amount and has to pay in EMI’s (Equated Monthly Income). The EMI is calculated by the bank taking into consideration the tenure of the loan, the Interest rate for the loan and the amount borrowed. Sometimes an individual might come in sudden need of money may it be for some emergencies or opportunities. This loan is one of the most preferred types of loan chosen by Indian households. Any time when there is a need for sudden lumpsum money by anyone they can choose a gold loan to fulfil their needs. This type of loan is one of the fastest processed loans by any bank.

The application procedure is simple and fast. One should have some basic documents in possession like Identity proofs and income statements. As the loan is secured by gold the bank might verify the ownership of the gold for security purposes. The purity and weight of the gold are taken into consideration by the bank to quote the borrower with a loan offer. Gold Rate Today is near its all-time high price. This is also a boost to people to choose a gold loan. This way, they use the gold they have for loan and also still be the rightful owner of the gold. People have been choosing gold loans in time of misery and also in good times. Its simple repayment features help the borrower with paying back the bank.

A person can opt for a gold loan when they have gold to be used as collateral, have a source of constant income and agrees to the bank’s agreement. If an individuals credit score is less still they can apply for a gold loan as it doesn’t emphasize on credit score a lot. The loan is secured by gold so an average credit score would also do good.

The best feature of this type of loan is that almost 90% of the application process can be done online. Especially during these pandemic times, one is avoiding all reasons to step out of their homes. This online application process not only helps those but also people who are unable to visit their nearest bank branch. For the collection of gold as the collateral bank also offers door to door assistance which enables a borrower to go ahead with this loan. SBI Gold Loan is available for everyone who brings the gold to the lender's desk. They offer gold loan amounting minimum of 20 thousand up to 50 lakh rupees.

Many other competitors in this segment charge high interest rates and processing charges but this bank has been able to provide the borrowers with the most user-friendly schemes. They charge processing fees starting at just 0.50% + GST (Goods and Services Tax) of the loan amount with interest rates starting at just 7.50% per cent. This interest rate is unmatchable in this segment. Any individual above the age of eighteen can avail gold loan facility at their nearest branch. Thus if an individual agrees to these policies of the bank and to pay monthly EMI’s on time they can avail these low-interest gold loans and fulfil their wants and needs.

Conclusion

There is no specified right time to apply for a gold loan but yes this might be the perfect time to go ahead with one as the gold prices are skyrocketing. They can be offered a handsome loan amount for the gold that they provide. Some basic identity proofs and documents are all that is required.

Also read this: Why a person with bad credit score can obtain a Gold Loan 

Few significant factors involvement the price of gold are mention here -

• Demand of gold :
  The gold demand in India is linked to culture, tradition, the desire for beauty, and financial protection. According to a study conducted by the World Gold Council, commissioned by the Global Gold Council (FICCI), Indian consumers regard gold as an investment and a décor. When asked why they bought gold, nearly 77% of those surveyed cited investment security as a factor while only just over half cited it as the rationale for buying gold.
  
  
• Volatility protection :
  People would like to invest in or buy gold to guard against volatility and insecurity. Indian households regard gold as the security haven, a buying asset if another asset loses value, as the preference for physical assets. Most investors would buy gold, whether the domestic economy was growing or in recession, underlining Gold's attraction as an asset for good and bad times.
  
  
• Inflation and Gold :
  When inflation increases, currency values decrease, hence the use of gold as money. Therefore gold is an instrument for preventing inflation in times where inflation remains high over a longer period. In the inflationary period, this pushes gold prices higher.
  
  
• Interest and gold rates :
  According to industry experts, there is a negative link between gold and interest rates under normal circumstances. The increase in income shows a strong economic expectation. Inflation is caused by a strong economy and gold serves as a cover against inflation. In addition, when rates rise, investors flock to fixed revenue investments that return a fixed return, as opposed to gold with no such return. Demand, therefore, takes a rear seat, where prices remain flat.
  
  
• Impact of the equation between rupee and dollar :
  In the Indian gold rate, the rupee-dollar equation does play a role even if it does not affect international gold prices. Gold is largely imported, and therefore gold prices are likely to rise in the rupee if the rupee weakens compared to the dollar. A depreciating rupee can therefore dilute the country's demand for gold. Remember, however, that changes in rupee-dollar rates have no effects on dollar gold rates.
  
  
• Market Of Indian Jewelry :
  Gold jewelry is an integral part of most festivals and weddings in India. This is why the demand for gold increases, boosting its price, during festivals and wedding times. The industrial gold demand is 12% of the country’s total gold demand.
  
  
• Relationship with other asset class :
  Some economists believe that gold is a very effective diversifier in terms of portfolios because of its low to negative correlation with all major asset classes. Gold, however, is a mainstream asset grade, generally showing no statistically significant correlation. However, there is evidence that a retrograde correlation can develop between gold and stocks, that is when stocks quickly decrease in value. Gold protects its portfolio against volatility because factors that affect returns of most classes do not have a significant effect on gold prices, either on the macroeconomic or the microeconomic fronts.
  
  
• Demand for Gold in Future :
  The demand for gold is estimated to be 1,000 tones higher than the supply. Most of the gold is recycled without the new mining capabilities. Less supply, therefore, contributes to changes in gold rates.

Conclusion :
Other similar factors, such as gold production, and its cost of production after that, influence the price of gold beside the factor listed above. The final thing to keep in mind is, however, that regardless of how many gold-rating factors may appear, everything ultimately goes down to demand supply. For example, today’s gold rate in Hyderabad depends on global gold rates, inflation, changing prices, the central bank gold reserve, fluctuating interest rates and the jewelry market. Hyderabad’s rate is based on international factors. Gold rate today in Hyderabad is Rs. 4,560.

Read More:- Gold loan saves huge amounts