Blog #Manappuram Gold Loan

A gold loan needs an asset to be pledged as collateral and is, therefore, one among the many secured loans. The gold loan is provided authentically by banks and Non-Banking Financial Companies(NBFCs) with affordable interest rates and flexible features. As unsecured loans don’t require collateral the eligibility criteria and the documents required is high and more. However, in a  secured loan the collateral during the loan term is temporarily owned by the bank or NBFC and is returned to the borrower only after receiving the owed money in full(principal amount plus the total interest).

But, besides pledging an asset, a bank or NBFC also have other demands. The applicant applying for a gold loan must be in the age range of 18 and 75 years. In addition, a government authorised ID proof is mandatory. PAN card, Aadhar card, Voter ID, driving license, passport are accepted as ID proofs by the lenders. Also, an applicant can apply for an agricultural gold loan if they have farming land in their name as proof. With these documents, a gold loan can be benefited.

Loans like personal loans have many documentation requirements, and the chance of getting rejected is high, but in a gold loan, as seen above, it only needs the basics. Hence, the probability of rejection is low but not NIL. One way of getting a gold loan rejected is by submitting an invalid ID proof or an expired one. For instance, passports and driving licenses have expiry dates, and if your submitted proof is expired, then a bank or NBFC can reject your gold loan application. Another probable reason for rejecting a gold loan is pledging a gold article(s) of purity less than 18 carats.

If the purity of the pledged gold is 16k, banks and financial institutions do not accept that gold as valid collateral and may reject your gold loan because of that. Also, in the case of an agricultural gold loan application, false land proofs or the unavailability of Kissan Credit Card may get an agricultural gold loan rejected. A loan rejection looks bad in a credit report and affects your credit score immensely. Therefore, make no mistake in the application submission and the documentation validity. Though unnecessary for a gold loan, a credit score is mandatory for availing most other loans and especially unsecured ones.

A gold loan can be applied using the internet from your home quickly or by visiting the bank or NBFC in person. Both the modes are simple and efficient. By filling in the basic details(name, age, address,etc..,) submitting the documents, and pledging the asset, one can rapidly avail a gold loan, and the loan amount disbursal is done immediately after the application’s verification process and approval. A gold loan is resourceful, and a customer can opt it for any purpose. Be it construction, business expansion, home renovation, weddings, or higher education, banks and NBFCs are readily available to fund your financial need. The LTV ratio is a maximum of 90% in a gold loan, and up to Rs one crore is sanctioned as a loan amount by the authorised finance providers. The interest rate starts at 7% per annum, and a gold loan interest calculator can be used to calculate the interest rate for the loan amount and tenure chosen. The tenure available is at most 36 months and at least three months in most banks and financial institutes. As an added advantage, the processing and prepayment fee are also NIL for a gold loan by most financiers.

A Kerala based financial company is Manappuram Finance Limited. And Manappuram gold loan stands as one of the best gold loans in India. The NBFC has millions of customers vouching for its reliability and trustworthiness with branches worldwide.

Read More:- How banks check the purity of Gold in Gold Loan 

A gold loan is a secured loan, which means it must be secured with gold. This is one of the most important distinctions. This may include gold jewelry, gold coins, and other valuables held as collateral by the lender. This gold is kept as a kind of insurance or protection, and the borrower is given a loan based on it. If the borrower defaults on the loan, the lender may sell the pledged gold to recoup the agreed-upon sum. Most of the time, a loan of up to 90% of the gold's value is authorized. Bear in mind that lenders never consider commissions on pledged jewelry or the price of any precious stones, so the market value determined for pledged assets could be lower.

A personal loan is referred to as an unsecured loan or signature loan because no collateral is needed. A personal loan is accepted based on the borrower's credit history as well as other policies' criteria, such as income, repayment capacity, and work type. A personal loan could be a safer option if you don't have any gold as collateral or don't want to pledge your gold jewelry. A personal loan can also be a better option if you need a large loan amount because you would not be required to give up your valuable gold assets in large amounts over time. The most important benefit of personal loans is this. You do not need to borrow any property or provide any security to your lender to obtain a loan. 

Because of this feature, personal loans are a better loan option than other types of loans-

1) The return

Personal loans are a better option for those that require a longer repayment period. Lenders may assist them in managing their monthly expenses in this manner. It also increases the chances of maintaining a decent credit score. Borrowers may select a fair repayment term and systematically manage their expenses with a flexible repayment period.

2) Rate of interest

Gold loan interest rates vary depending on who you borrow from. In certain cases, annual interest rates on gold loans will reach 24 percent. Personal loans have low interest rates, such as 11.99%, but the rate offered to the borrower is primarily determined by their creditworthiness ,eligibility and through the gold rate today monitoring.

Borrowers will learn more about the personal loan, as well as the gold loan's minimum interest rate, based on their loan eligibility, and then make an educated decision based on other factors such as security and repayment. For your own sake, you should be aware of the gold rate in the city where you work. For example, if you live in Hyderabad, you should be aware of the gold rate in Hyderabad.

3) The documentation

A gold loan requires proof of identification, proof of address, proof of ownership of the mortgaged property, and other documentation depending on the lender's requirements. Personal loans include a PAN, proof of identity, proof of address, proof of income, and bank account information. The amount of the loan is determined by the borrower's income and employment history. Personal loans, on the other hand, come with no hidden fees. Gold loan lenders can be required to pay collection fees, insurance and service fees, gold appraisal fees, paperwork fees, administrative fees, and other fees.

Manappuram gold loan are offered by lenders such as banks, and borrowers submit their applications online, upload their documents, and the loan is approved within a few hours after they have been successfully reviewed and approved. The funds are distributed as soon as possible. Borrowers can apply for personal loans online instead of on paper, and they can do so from the convenience of their own homes. All you have to do to get a Bank Gold Loan is provide the bare minimum of paperwork, and the money will be in your hands in less time.

Also read:- Personal Loan or Gold Loan which offers best Interest Rates 

The concept of pledging any of your gold for money has been around for centuries. However, the entry of banks, as well as different lending institutions in the domain, has simply made it a more formal as well as transparent process of money lenders. Gold loans are very cheap loans, especially for very short-term credit seekers, compared to different types of loans. But, as with every type of loan, full knowledge is very important and necessary before entering into the financial agreement. 

There some important things that you should know before avail gold loan:

1) Most of the lenders simply offer loans up to 90% of your gold’s value after checking all the metal for purity as well as ascertaining the value.

2) Coins, as well as bars with a little bit higher purity, offer more value than gold jewelry.

3) The rate on this loan can be very less. In this bank, you will see repayment tenure period is 3 months to 36 months and includes rate as well as principal.

4) Any person can simply avail if they are above 18 and who has any of the gold to be pledged can opt for such types of loans.

Some of the benefits of the gold loan: 

1) This is a very secured loan. Therefore, even if you have a bad credit history, this will not impact the chances of getting the loan.

2) You have the best option to pay only the interest component as well as the principle can be paid as a lump sum amount at the end of your loan tenure period.

3) For any of you involved in agriculture, gold loans can simply be availed at a reduced rate.

4) Since this gold is the collateral, the paperwork also involved is very less. All you need or require are your basic personal id.

When the Fluctuation in gold rate does not affect this loan or pledged gold in any way or more. Once you have taken the best loan, you are not contractually bound to make up for the difference in your amount even if the gold prices decrease so much that the loan value becomes a little bit higher. Gold rate in Chennai if you are living in Chennai then you must have to see what the current price is because it will be helpful for you.

If there are any types of default in the repayment, the finance company can simply sell the deposited gold and easily recover dues as per the terms of the gold loan agreement. If this happens, you will lose your whole of the gold. As banks simply offer gold loans, you can find this difficult to finally take the gold loan from. One can use a Gold loan Calculator to estimate repayment capabilities. But before you simply make that type of a decision, do always check the loan options available to you.

Manappuram Gold Loan has exciting offers which start from Rs. 5,121 is normal that’s why new borrowers want to get gold loans. Banks have very more advantage because the rate charged by them is comparatively very less. This is so because banks are simply able to raise a few huge funds at a very less rate. Where this gold loan from the NBFC scores over a bank is always flexible this also allows you to repay your gold loan. And new borrowers want to avail gold loans from the Bank because of many types of advantages this bank gives whether it is per gram rate or interest 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 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 

A gold loan eligibility or ability is surveyed relying upon the degree credit per gram of gold or gold advance entire you may get evaluated gold being put away as an assurance (subject to the cost of gold), the assessment of gold, and Loan to Value extent applied by the specific bank or any advancing office.

You can get a gold credit just by introducing your gold embellishments and copies of KYC reports with the advance trained professional. A couple of banks don't demand affirmation of instalment. Gold credit proceeds can be used to meet any financial emergency, which joins, provincial expenses, enlightening expenses, and so forth.

Post convenience, an agent from the bank or NBFC will connect with you to share further bearings. You may get the decision for doorstep appearance for assessment and grouping, in case not, by then you should visit the bank. Post evaluation, the bank will give the development in like way.

The gold advances are seen as the least complex and most moderate advances of all on the grounds that the gold credits are gotten propels. This suggests that the cost of the development is as of now covered by the gold one has set up as the security by the individual applying for the development. This is the explanation gold advances are accessible to numerous people from any money-related condition as long as they own gold themselves and are glad to put it up as security at the bank. Moreover, the best thing about these gold credits is that they are open for the most part across all banks and financial foundations. The manappuram gold loan is one of the occurrences of banks that are driving in gold advances particularly in the discouraged zones. Gold advances have the most un-financing costs conversely with other individual credits.

Regardless, their several segments everyone needs to enlist if they should be seen as qualified. These fuse estimates like age, genuine character records, and the idea of the gold.

Age :

Any person over the legitimate age of 18 and under the age of 75 is allowed to apply for a gold advance in any bank they may find fitting.

Models :

People working in the territories like Farmer, Trader, or are Salaried/Self-Employed specialists, or monetary experts are generally able to apply for the gold credit.

Documentation Required :

Diverse KYC files are relied upon to develop the character and address of the competitor. These files may consolidate yet are not confined to Passport, Driving license, Voters' ID Card, Aadhaar Card, and PAN Card.

Gold Quality :

The gold being guaranteed as an assurance should be on any occasion 18 carats or above. The most desirable characteristics are given to the applicant when the gold is 22 carats or all the more yet 18 carats is the most un-quality expected to apply.

Advance Amount :

The development total is all around amounting to the quality and measure of the gold being pledged as security and can go as high dependent upon the gold anyway the most negligible should be ₹1,500 and over.

CIBIL Score :

The applicant needs to have a decent CIBIL score to accomplish such a credit. Despite the fact that gold advances are gotten, the CIBIL scores add to the confirmation that the competitor can be trusted with propels. In any case, a huge load of banks doesn't demand a CIBIL score while applying for gold credits.

These are the principal capability estimates that one needs to meet with each person who needs to apply for a gold advance. The gold loan interest rate  is high stood out from various credits. This is on the grounds that the guidelines that ought to have been met for gold advances are incredibly wide and feasible for by far most.

Also read this: Is it a good time for a Gold Loan? Here is all you need to know. 

So let's start by understanding what gold loans and personal loans are. 

Gold loan is a secured loan that the borrower takes from the lender by taking money against gold. It is the best option to go for if you have a short-term money requirement. The demand for gold loans has increased a lot because the gold rate is increasing a lot, the Gold Rate Today is INR 49,700 which is high compared to the past.

The features of the gold loan are :- 

1: Fast processing :- The application process is comparatively fast. You don't have to wait for days or months to get your gold loan approved. Most of the banks and NBFCs give cash instantly once the documents are approved and the gold is verified. For example- the Gold Loan at Manappuram.

2: Rate of interest :- The interest usually depends on the lender to the lender. Some may charge 7.50% whereas some can charge 13%. It depends on the bank. But the rate of interest of gold loans is usually low when compared to other loans. And if you want to lower your rate of interest even more there is an option where you add any other asset as collateral.

3: Paperwork :- There are not many requirements for paperwork. You only have to give copies of basic documents like:-

• Aadhar Card
  
  
• Pan Card
  
  
• Voter ID Card
  
  
• Passport
  
  
• Rent Agreement
  
  
• Utility Bills, Telephone Bills, Electricity Bill
  
  
• Driving License
  
  

Banks usually don't ask for income proof when one is applying for a gold loan. Banks give individuals the flexibility to do whatever they want with that money, you are not reasonable to anyone. 

• Credit Score :- Unlike other loans you don't have to maintain your credit score to get a gold loan. The thing that matters the most is whether or not you'll be able to repay the amount with interest.
  
  
• Flexible repayment :- Banks offer you several options for repayment, you can pay however you want, for example:-
  
  

• If you want to pay the whole amount at the end of the tenure you can do that.
  
  
• If you want to pay the half amount at the initial stage and the rest at the end you can do that.
  
  
• And if you want to pay the whole amount every month in small fractions then you can go for an EMI option. 

Personal loan :- It is an unsecured loan, made to meet your current financial needs. You don't have to keep anything as collateral or security to avail this loan.
 

Features of personal loan are :- 

• No collateral :- For a personal loan, you don't have to give anything as collateral or security. This is one of the most advantageous things about a personal loan. But it is completely optional, if you don't have any assets and you want a loan immediately then you can go for this option. But if you have an asset then you can go for a gold loan or any other loan.
  
  
• Complete flexibility :- You are completely flexible to use the money you get from this loan however you want. But you can't use it for illegal activities.
  
  
• Paperwork :- You'll have to complete your KYC to get approved for this loan.
  
  
• Credit score :- You'll have to maintain a decent credit score to get a personal loan.
  
  
• High-interest rate :- As a personal loan is an unsecured loan, the interest rate is usually high for unsecured loans. 

Conclusion :- Both the loans have their own unique properties. Both have reasonable features and are suitable for different situations. To compare all the choices you have in your hand and then go for the best one.

Read More:- Ten Steps That You Need To Follow While Applying For A Personal Loan 

Among all the factors, there are few opportunities in the form of the loans and advances like a gold loan, home loan and all the other types of loans. First and foremost, to avail of the loan, one will have to go through the different kinds of procedures of the application as the applications are available in the online and the offline mode. One will have to go through the proper tabs and fill the application form for the gold loan. One will have to go through the websites or have to download the gold loan or the financial institution's app. One will have to fill in the personal details and all the requirements related to the gold loan. After completing the form fillup one, there will be a phone call for verifying the gold loan factories and all the minute related things of the gold loan then the representative or the official will inform in which scheme he or she will be eligible and based on that what documents will be required.

 
The documents are pretty simple as it contains the essential things and not any rocket science. The documentation process is very simple as one will have to mainly submit the proof of address and the proof of identity. It will not require any income proof. In case of identity proof, one can present an Aadhaar card, pan card, voter ID card, or passport copy and do the work. While in case of the address proof, one will have to go through the arrangement of any of the one like that of the rental agreement if the person is residing in a rented house, passport, driving license, utility bills like that of the cooking gas bills or the electricity bills, voter id or the aadhar card. There are many other financial institutions where the person will be asked for photo ID proof as well. Manappuram gold loan offers attractive facilities for the customers. This is why the documentation is straightforward, as the copy of these can be sent through email in the pdf form and maintain contactless safety and are less time-consuming.

After this, the gold loan valuation is done to fix the total original value of the gold and calculate the gold loan amount as power for their respective allowance percentage. If anyone looks into the gold loan, one can find that there will be the application of the LTV ratio. The LTV ratio is the ratio that will adversely affect the loan. If the LTV reaction is high, then the cost and interest rate of the loan will also be increased, while on the other side of the coin, if the LTV ratio is low, then the cost of the loan and the interest rate will also be below. There are different factors that will affect the valuation of gold in financial institutions. The purity of the gold, LTV ratio or the gold loan interest rate, current gold per gram rates, the stems or the stones present in the jeweller and the weight of the gold available in the form of the com or the ornaments play a significant role.

Conclusion:
In the case of the purity of the gold, it is said to be between the range of the 18 carats to that of the 24 carats, which is allowed for availing the golf loan. Some of the NBFCs, like that of the Manappuram gold loan, offer the gold loan at the rate of ranging between the range of 19% to that of 29%, while the IIFL gold loan provides the loan of 9.24% to that of the 24%. The comparison and then selecting the gold loan provider to go for will be a good option.

Must Read:- Where Do We Find Gold Rates Involved?