An individual has to pledge one’s gold ornaments at a lending bank or institution for acquiring a gold loan. This is a short term loan which can be availed by completing a simple procedure with minimal paperwork.
The gold loan application process :
Gold loan application involves the submission of detailed information by the borrower. The application form can be filled online as well as by visiting the bank. Gold loans are one of the most uncomplicated and most straightforward methods to leverage your gold and obtain funds. Anyone who has gold, whether in jewellery, coins, or bars, is eligible for this loan. One has to abide by the eligibility parameters to acquire a Gold Loan.
Why is document verification necessary?
An individual is asked to submit KYC documents for verification purposes where the credentials are verified. Identity and residency proof, as well as two passport-sized pictures, are mandatory. This process is necessary to avoid cases of fraud. If the fraudulent activity is detected during verification, then the loan application gets rejected, and strict legal action might be taken against that particular individual. The photocopies of the following documents have to submit for document verification.
- Aadhar card, ration card, utility bills, passport, PAN Card, Renter’s agreement can be submitted as Residence proof.
- Aadhar Card, Driving License, Voter ID, Passport can be submitted as identity proof.
What does the purity test of gold signify?
The purity test of Gold analyses the composition of gold along with impurities. The impurities make the weight of Gold more, so it is essential to evaluate it. This test is significant in assessing mortgage jewellery, and the loan amount is determined based on gold’s worth after the purity test.
How is the interest rate evaluated in Gold Loan?
To get the best interest rates, you must negotiate. Gold loans often have lower interest rates than personal loans since they are ensured, whereas personal loans are insecure. Because they have a higher cost of financing, NBFCs usually charge a higher interest rate than banks. In most occurrences, the Gold Loan Interest Rate is between 13 and 15%.
What happens to the mortgaged gold?
The mortgage gold is safely kept in bank lockers marked with a unique application number mentioned in the borrower’s approval letter. This gold is sealed in the bag and kept in safes by bank authorities. The gold is safe-keeping until the end of the loan term.
When is the gold liquidated or auctioned?
When the borrower fails to repay the amount in a given time frame, then at such times, an ultimatum is given to the borrower of two weeks to make the repayment. If the borrower fails to repay in the given extended timeframe, liquidation or auction is done. Banks compensate the outstanding amount in whichever way it is suitable for them.
Can the gold loan be acquired on ancient jewellery?
It is commonly believed that loans can’t be acquired on ancient jewellery or heirlooms. This is entirely false as a gold loan can be obtained on any jewellery weighing above 18 carats.
Is the lender's credibility important?
It does so because you keep your gold there. The lender will feel confident since he has the gold as collateral if the borrower does not pay its interest rate back. However, the value of your gold exceeds the loan value, and there is no assurance that you will receive the gold back. Before approaching a lender, conduct background checks and become familiar with the security procedures in place. Therefore Manappuram Gold Loan is a good option for obtaining a Gold loan with less incurred interest rates.
What happens after successful debt consolidation?
When you complete the loan repayments, the bank issues a loan completion letter in your name and tour gold valuables are safely returned to you thereupon.
What are the tenure period and repayment options of Gold Loan?
Because a gold loan is a short-term loan, its tenure duration is shorter than other loans. The tenure period is usually 6-12 months. The borrower doesn’t need to be the bank’s existing customers to avail of this loan. The repayment can be done from another bank to Manappuram bank for loan repayment. The repayment options such as Standing Instruction, Debit mandate, post dated cheques.
Must Read:- Why gold is the first choice of borrowers
