Blog #IndusInd Bank Gold Loan

A gold loan for an unemployed person is a piece of cake these days. India and Finance have progressed so much that even an unemployed man can get a gold loan quickly. You may think that it’s a lot of paperwork, and you’ll have to make a lot of rounds to the bank, but those are just rumours. Getting a gold loan is so much easier and quicker than it was before. You’ll just have to take minimal required documents, get it confirmed by the bank, and voila! You’ll get your gold loan approved at an attractive interest rate just like that. 

There are even a lot of government schemes for the unemployed:-

Prime Minister Rozgar Yojana:- It provides self-employed opportunities to educated youth along with that it also allows you to get loans up to 10 lakhs. This scheme was launched in 1993 and is targeted at women and youth. 

Agriculture Loan:- This is a scheme targeted to unemployed youth engaged in agriculture. With the help of this scheme, you can get a loan of up to 1 lakh without any security. 

Loan subsidy scheme:- This scheme is not available across all states; still, the Tamil Nadu government under NEEDS (New Entrepreneur and Enterprise Development Scheme) provides a 25% subsidy for any loan taken by an unemployed person. 

Cash loans:- Under this state-funded initiative, an unemployed person can apply for a loan up to INR 50000. The age criteria for this scheme is the 18-45 age group. This scheme is similar to NEEDS, but this scheme is under the government of West Bengal. 

Getting a gold loan can also be an advantage for an unemployed person. Gold rate today is not that high as compared to the past offerings by lenders. Most gold loans don’t have any documentation process; you can just walk in your nearest branch and get your gold loan approved in a minute or two. Gold loans usually have lower interest rates compared to other credit loans, so it also helps in reducing your monthly outflow.  

Some banks give special offers to their existing customers; they provide offers like easy repayment options, attractive interest rates, and instant liquidity. For example:- IndusInd Bank gold loan gives an additional discount to women borrowers and agricultural professionals for a loan up to 10 lakhs. 

Interest rates:- Usually, the interest rate is higher than 8%, but you can get it for as low as 6%.

Things to keep in mind before going for a gold loan:-

1. The Lender:- Choose your Lender carefully, It is usually advisable to choose a public or a private bank, but you can even go for Non-Banking Financial Companies (NBFC) so that your gold remains safe with them. 

2. Rate of Interest (ROI):- There are a lot of banks and different banks that provide gold loans at different rates of interest. So it is always advisable to do your research and go for a bank with less rate of interest. So at the time of repayment, it won’t cause many difficulties. 

3. Loan Amount:- As there are plenty of banks/lenders in the sea, but no one gives you 100% of your gold value amount. So choose your Lender carefully and do your research before choosing the Lender. You can compare the prices and the rate of interest to choose your perfect Lender. 

4. Tenure:- The gold loan tenure is usually short; some provide it for 8-24 months and some for 12-48 months. So check if you are capable of repaying the amount with the rate of interest for the particular time you go for. 

5. Repayment method:- As earlier mentioned, some banks give offers like easy repayment options to their existing customers. Some let you pay the principal amount at the end of the tenure and allow you to pay the interest during the time. At the same time, some let you pay annually, quarterly and semi-yearly. 

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

Gold loans and personal loans are getting a significant attraction where most people make their requirements come true. Among the two, the gold loans have unique criteria to avail of the gold loan straightforwardly. The advantages and the features of the gold loan make others reliable to get help from the gold loan. A gold loan is the type of loan where a person will be entitled to pay the loan amount, after which there will be the possession of the gold back to the original customer. The gold loan has specific features and advantages, making it the best hand pick of the category.  First and foremost, the benefit of the gold loan is the low rate of interest. Compared to that of the personal loan, where the loan interest is always high, the interest rate is high due to the uncertainty, and there is no security or collateral.

The risk factor of the nine repayments is much in the personal loan and the other types of loan. The interest rate of the gold loan is low. There is no requirement of the collateral for any security or security deposit, while on the other side of the coin, there are few options available. The banks and the NBFCs are having the chance of selling or auctioning the gold available to them. Suppose it is non-repayment or the customer cannot pay even on the repeated reminders or any responses where the customer has not mentioned a problem. In that case, the loan provider is at total freedom to sell the gold available in the form of the coin or the ornaments. Few things are the reasons for the fluctuation of the gold loan interest rates. The loan amount is the factor that there is the interest rate, which is so high or low. On the other side of the coin, if the customers have less income, then the interest rate will be more for the gold loan.

There is the monthly income of a farmer, trader, or a salaried person or a self-employed business professional, which is also considered in calculating the interest rates. IndusInd Bank gold loan offers good facilities to the people. The interest rates of the gold are related to RLLR, which is seen as per it is updated once in every three months, while on the other side of the coin, there are the MCLR are directly related where the reset period is six months to 1 year.

If India's Reserve bank is changing the repo and the reserve repo rates, then the gold loan interest rate will also be altered. It happens when the person is following the external benchmark method as per the gold rate today. If we come to know about the documents required, it is significantly less. Compared to that of the personal loan, there are many papers like that of the income proof that includes the salary slip or form 16 or related documents from the employer, there will be an issue in maintaining or arranging those as everyone is not salaried or employed. In case of this matter, there is always a happy relief where a person will get ease in the documentation which only includes the proof of address and the proof of identity bands that if the gold ownership documents.

Conclusion: The most important thing is that all these submissions can be made online, which is safe and reliable and significantly safer in the pandemic. To conclude, we can say that there are different opportunities like that of the no requirement of the credit score, security and the loan amount can be disbursed within the period of the few hours to few days only.

Also Read:- Offline Gold Loan Approval Process