Blog #Muthoot Finance gold loan

The way financial institutions make money by providing money. These companies lend the public credit and charge the repayment for this service for a specific interest rate. A gold loan is one of the best ways to raise money quickly in the modern credit system.

The Gold Loan (also referred to as the Loan) against gold is a loan secured to the creditor by pledging its gold (18-24 carats) items as collateral. Based on the market and gold quality, A specific portion of gold shall be the credit amount provided, generally up to 80%. During urgent events such as job losses or business losses, you can apply for gold loans. You can get your gold converted into small ornaments and avail of short-term loans on them. In the past few months, the prices of gold have also increased significantly. RBI has increased the LTV on non-agricultural loans from an earlier limit of 75 percent to 90 percent.

Gold loans are secured loans that require you to maintain your physical gold as collateral to your fund requirements as jewelry or coins. It is considered to be an excellent alternative to demanding short-term money.

Many financial institutions provide a gold loan at a different interest rate and they provide a Gold loan calculator facility as well. The loan-to-value ratio varies from one institution to another, providing up to 70 percent of others’ total value. There is also a low processing fee for a gold loan regarding a certain amount of the actual loan. The tenure period also varies between businesses. You choose your gold credit per gram value in terms of gold quality, the best one being "24-carat." 

Some other essential factors in the process of gold loans are :-

Start-up companies :- 

It is rather difficult for new companies to raise their finances, as they are new and lack goodwill. Before they even compete, several start-ups fail just because they are out of the fund. While it is risky to lend money to such companies, a gold loan is no risk for the lender, and therefore your repayment capacities should not be proved. A gold loan would be an excellent way for a start-up company to raise money.

Personal or family-run businesses :- 

Like start-up companies, it might be somewhat tricky for entrepreneurs in India who run their own private or family businesses to receive loans. As lending to a small company owner has little security, the lenders are reluctant to provide these people with loans. The application of a gold loan is, therefore, once more, one of the best ways to raise finances.

Agricultural business :-

Farmers are our daily source of broth and butter, but most farmers are still lacking. A farmer’s gold loan may not be the best choice, but if there is no other way to raise funds, then gold loans should have opted. One can use this money to buy livestock. Most people, Odisha, like to buy gold. People of all classes in Odisha are involved in gold purchases and use gifts in numerous festivals, family features, and marriages. Gold Rate In Bhubaneswar is Rs 4110.

What happens when you have dues in the loan?

The actions taken by the lender for defaulting in gold loan differs for each lender. For the overdue period, some lenders charge interest, usually higher than the customer's loan. Another loan default will lead to a message informing you about the time you will have to clear your obligations. Your obligations. The unpaid loan can also lead to lenders auctioning your gold items to recover their outstanding credit amount at the final notice date.

Muthoot Finance Gold Loan per gram details are stated below :

Farming purpose: 15 lakh (payable within 18 months) for a limited period against hallmarks of gemstone and gold Coins: 7.35 percent (Max 50 gms)Against Normal Jewelry: 7.40%.

Also Read:- GOLD LOANS VS CREDIT CARD 

Top-up on gold loans can be easily availed without paying extra charges. One can easily get a top-up on the existing gold loan without paying any extra charges. Banks only offer 50% of gold’s existing value for the good low which is quite less. One can get a top-up on a gold loan easily in times of financial crisis. An individual can only apply for a top-up for an existing gold loan. Many banks and non-banking financing companies provide a top-up on existing gold loans to the borrower. 

Getting a top-up on the gold loan can help the borrower in various ways. People sometimes often get confused when to apply for a gold loan. The following points are mentioned below regarding the top-up plan that will help you decide when to get a top-up on the loan. 

• In times of a financial crisis, one can easily apply for a top-up on existing gold loans. Top-up during the financial crisis can be of great help. 
• For business expansion, education, marriage, travel, house repair, and many other purposes. One can get quick funds easily by using the top-up plan. 
• Loan in case of emergencies. Top-up on an existing loan requires minimal documentation. One can easily take a top-up during times of emergencies on an existing loan. 
• If a borrower requires a gold loan at a lesser interest rate than the existing gold loan. Gold loan interest rate may differ depending on the bank or non-banking financing company chosen. 

Taking a gold loan top-up can be beneficial during a time of financial crisis. Some of the benefits of getting a gold loan top-up are listed below:-

Gold Top-Up Loans Interest Rates

The interest rate on top-up loans depends upon the loan tenure. One should compare the interest rate offered by various lenders and then apply for a gold loan. An applicant can easily get a top-up on an existing gold loan at a minimal interest rate. 

Top-Up Loan Eligibility

An applicant can only apply for a top-up loan if there is an existing gold loan. The payment to be made timely on the gold loan is also very important. One can apply for a top-up on a gold loan from an existing lender.

Gold Top-Up Loan Amount

Gold loan top-up amount depends on the value of the mortgaged gold. Your gold loan may also vary depending on the existing loan amount and its tenure. An applicant should choose the tenure of the loan as per convenience considering the financial conditions. 

Top Up Loan Processing time

The top-up loans processing and disbursal requires a very minimum time. A lender decides the loan amount after a quick evaluation of gold. The processing time for a top-up loan on existing gold is quite fast. One can avail of the top-up loan in the shortest time possible. 

Getting a top-up on a loan is not a big task. Anyone can easily get a gold loan top-up from any preferred financing company. One can apply for gold loans all across India at any bank such as Muthoot Finance gold loan. The bank offers amazing schemes on gold loans. The processing fees and the interest rate charged is very minimal. The bank is recommended for getting a gold loan. For more information regarding the gold loan and its top-up plan, one can check the online website of the financing companies.

Conclusion 

Top-up on a gold loan is a very convenient option. An applicant can apply for a top-up gold loan on an existing loan by submitting minimal documents. There are no extra charges for applying for a top-up loan. A borrower can get a top-up loan at a very affordable interest rate. In the above article, all the information regarding top-up loans and their various advantages are given. 

Read More:- Gold Loan For Beginners 

There is no doubt that in times of urgency, a gold loan may be made available for rescue. Gold loans can be granted to anyone with idle gold sitting in their homes by various banks and financial institutions. It just has to be sent to the lender for an affordable rate of interest to get the loan amount. This factor is one of the best and easiest options today for a gold loan. It also brings a certain credit mix into your profile due to the secured nature of a gold loan. While taking an emergency gold loan, one has to keep the below points in their head. Choosing the right lender is as important as choosing the right borrower. The credibility of the Lender When we told you to receive a gold loan, you had to present your gold to the lender as collateral or security. After the loan is repaid, the lender returns your gold ornaments and gold coins. Some lenders also distribute your gold in case of an emergency for part of the loan.

But did you ever consider a situation in which the lender is a scam and you would not get your gold even after making full repayment ?

Well, you need to check that the creditor from which you opt for a gold loan is credible to avoid such situations. Please remember that you choose your creditor as a reputable public or private bank or NBFCs to keep your gold safe with them. Always investigate the lender you are looking for a loan from. Factors such as the customer's loan facility reviews should be checked for your gold security measures and other things.

Loan Amount :-

This is one of the key factors when applying for a gold loan. Several lenders give gold loans, but the amounts of the gold loan vary between the banks. Be aware that no creditor gives the amount of your loan 100% of your gold value. It typically ranges from 65% to a maximum of 85% – 90% of the gold value. You can therefore get a maximum INR 9 lakh loan from any one of the lenders, for example, your total amount of gold is INR 10 lakh. It is therefore important to check the characteristics of the respective lender so that you can make a better decision while choosing your Gold Loan Facility's highest LTV ratio.

Rate of Interest :-

Due to its direct effect, it is the most important factor in determining your refund amount. Therefore, always select a lender with the lowest interest rates to ensure that there is no greater reimbursement. Therefore, it's important to choose the loan provider that will provide you with affordable Gold Loan Interest Rate ,while also complying with your other requirements.

Tenure :- 

The tenure of the gold loan is generally short between 12 months and 48 months. So, before choosing a lender's gold loan, it's important to check your repayment capacity. Because any payment that is not received has an impact on your credit score. Keep this in mind, therefore, when selecting the tenure and the method of paying your gold loans.

Repayment Methods :- 

This is a significant factor, which is ignored by many people as they apply for a gold loan. Gold loans offer very flexible methods of repayment for customers compared to other loans. Check your lender's reimbursement methods for your gold loans. Certain lenders allow the interest to pay the principal at the end of the tenure in advance, while others allow you to pay the interest amount on a monthly, quarterly, semester or annual basis and at the end of the tenure they can pay the total principal amount. You can also choose the EMI method of repayment where you pay both the principal and the interest amounts monthly.

conclusion :-

where to take a gold loan now, though not before, could be easy, since a large number of financial institutions offer a loan like Muthoot Finance Gold Loan.

Read More:- History of Gold Loan 

Gold loan is a very common option amongst individuals to avail cash instantly, as it is habitual for Indian individuals to keep gold in their house. It is a tradition that have  been followed for ages. This allows them to use gold in emergencies. Gold can be used by individuals as collateral to avail funds for diverse needs.

One of the situations, where an individual may need to choose the option of availing a gold loan from a bank or other financial institutions is in the case of a medical emergency. If there is a sudden medical emergency, savings and a medical cover might not be enough to cover the all the bills such as medicines, tests,  and hospitalization. In such a situation, a gold loan is a very viable option and it could help in paying for a life-saving situation.

There are several benefits of procuring a gold loan -

1. Instant disbursal - In a medical emergency, there an urgent need for money, a gold loan would be the most suitable option in that situation. The process of loan application and submission of documents can be done online. After the bank or the financial institutions completes their verification process of the documents and value of gold, disbursal of loan is done in 24-48 hours.
   
   
2. High Loan to Value - The loan amount, in a Gold loan, is sanctioned at a specific percentage value of the gold, which is determined b factors such as purity, weightage, market value. Banks and financial institutions provide a loan to value ratio of up to 75%, which can be very useful for an individual in a medical emergency to pay the bills.
   
   
3. Flexible repayment structure - Banks and other financial institutions provide several options to individuals for repaying their gold loans. The individual has the option of repaying the loan through equated monthly installments (EMIs),  advance interest payment - where the interest is paid in advance and principal amount at the end of the loan tenure, interest payment at regular intervals - where the interest is paid at regular intervals and principal amount at the end of the loan tenure and bullet payment - where the principal amount and the interest charged on it is paid together at the tenure end. These options are beneficial in a medical emergency as the borrower does not have to worry about defaulting in payment or being levied a penalty.
   
   
4. Simple Criteria - Unlike other loans, the gold loan does not consider factors such as income, debt history, employment stability, and loan repayment capacity which are considered in other loans. In a gold loan, the loan is sanctioned against the gold of the borrower. Even a person with a low credit score and avail of a gold loan. The process also requires minimum documentation such as proof of identity, proof of residence, etc. Even proof of income is not needed. This is again very beneficial for a borrower in medical urgency as they do not have to worry about difficult criterion or any extensive paperwork. Online facilities provided by institutions such as Muthoot Finance Gold Loan make these processes very convenient for the borrowers.
   
   

The process to avail a gold loan - 

1. Gold loan application
    
2. Submission of gold
   
   
3. Gold evaluation
   
   
4. Collection and verification of documents
   
   
5. Disbursal of Loan

Eligibility Criteria for a gold loan

1. Any individual who possesses gold can apply for a gold loan, regardless of their employment status or type of work.
   
   
2. To apply for a gold loan the individual should be 21 years and above, the maximum age limit differs in every bank and financial institution.
   
   
3. The applicant should have all the required documents.
   
   

Thus, because of the simple nature of a gold loan and the various benefits attached to it, gold loans can be a very useful option in medical emergencies.

Also read this: How to manage gold loan EMI’s? 

Gold has more than just monetary value in our country. It is considered a status symbol. A precious metal with which people have an emotional attachment. People usually take a gold loan to fulfil their urgent need of funds may it be for any emergency purpose or leisure. In a gold loan, the borrower pledges some gold at the bank or the NBFC and in return gets a loan of a certain value. The repayment of the loan is bound to the tenure chosen by the borrower and is paid in EMI’s ( Equated Monthly Instalment). The profit of the bank in giving out the loan is the interest that it charges on the loan. The monthly EMI is a mixture of loan principal amount and interest. The central bureau maintains a record of each EMI paid and the borrower’s payback pattern. 

Not many people know but each timely payment of EMI contributes to their credit score and also each default in payment. CIBIL score is an important factor that lending institutes consider while offering any loan. In the case of a gold loan cibil score of the borrower is not the priority so even an average score would do just fine. This is because the loan is secured by pledging gold to the institute.  

An individual doesn’t need a good credit score to avail of a gold loan but their availing of a gold loan improves their credit score. The timely repayment of the gold loan EMI’s contributes to the growth of credit score. These days gold loan per gram is an offering by most lenders. Under this scheme amounts as low as the equivalent of 1gm gold can be availed. This scheme enables people with a low financial background to also avail themselves of gold loans. A credit score is calculated by taking into consideration of four factors. They are as followed:-

• Credit history - Your old credit repayment behavior is analyzed. Default in payment of EMI on time could impact your credit score.
• Total Debt - This takes into consideration your total debt to income ratio. The rising debt could impact the growth of your credit score.
• The balance between secured and unsecured loan - A proper balance between secured and unsecured loan has to be maintained. Too much of either could be bad in long run.
• Frequent Enquiries - Too many credit score enquiries could have a negative impact on your credit score.

Thus these are the factors considered while the bureau calculates an individuals credit score. Gold loan offered by various lending institutes at varying rate of interests. Muthoot Finance gold loan is an offering by a pioneer in this field. Interest rates starting at just 12% per annum. It is one of the only few to provide gold loans of a lower limit of 1500 rupees only with no upper limit. They also provide a flexible repayment system with tenure of the loan ranging from 7 days to 36 months. The best part being no foreclosure charges meaning that the loan can be settled before its maturity at no extra cost. This makes the bank and its offering flexible and user friendly. Therefore gold loan can contribute to the growth and fall of your cibil score but when used wisely it will contribute to your credit score which will make it easier for you to avail any type of loan at better offers. 

Conclusion: CIBIL score has its importance but the majorly in unsecured loans segment. In gold loan collateral is involved therefore the need for a good credit score is not a priority but on the other hand, the gold loan repayment will make your credit score strong and that has many benefits.

Also read this: Some Unknown Facts About Gold Loan 

Gold upsurging rates

Gold prices are rising, which is an excellent opportunity for you. Due to economic worries ranging from the US-China trade war to the COVID-19 epidemic, gold has been one of the most significant asset clashes in recent year. A rise in gold prices is beneficial since it enhances the market value of the jewellery or coins you are pledging. Lenders will also offer you loans with lower interest rates because the risks associated with keeping them are lower.

Eligibility parameters

Unlike other loans, there are no specific qualifying restrictions for the gold loan, such as income, work type, employability, or CIBIL score. The sole need for a gold loan is that you have gold to offer as security. If you are a person who possesses gold and wants to borrow money against it, you may be eligible for a loan. The loan amount will be determined exclusively by the worth and purity of your gold. The loan process at Muthoot Finance is relatively straightforward; however, one must review the qualifying conditions before making a decision.

Only the most basic paperwork is necessary

Another economic benefit to pick a gold loan is the extremely simple and little documentation necessary. To apply for a gold loan, you do not need to give a comprehensive list of documentation. To get started, all you'll need are some basic KYC papers and passport-size photographs.

Priority industries receive lower-interest loans

Agriculture is a high-priority sector for Indian lenders. Farmers seeking loans to support agricultural activities and other farming-related initiatives can also request an interest rate rebate of 1 to 2%. Some NBFCs also offer women lower-interest loans secured by gold.

Why gold loans may be beneficial in the present circumstances:

In order to reopen their doors, small enterprises will require working money. With banks hesitant to take on new risk on their books, gold lending firms may be the apparent alternative for small businesses seeking operating money to continue operations.

The majority of households have witnessed either a decrease in income or a loss of employment. Gold loans may be the least dangerous and most viable option for them to borrow finances to keep the home functioning during economic downturns.

Current borrowers can borrow more for the same amount of gold because its value has already climbed by approximately one-third in a year.

Gold loan companies offer loans at 75% LTV; however, the 30% increase in gold prices over the last year has effectively brought the LTV closer to 52%, providing them with significant cover in the event of default or the improbable scenario of gold prices rebutting significantly.

Gold loans have become more affordable after the RBI dropped the repo rate to its lowest level in 20 years last month. As a result, banks have cut interest rates on gold loans by up to 40 basis points. Gold loans outperform most other types of advances, including personal loans, in terms of interest rate.

Ideal for unpredicted/emergency situations

In most cases, you'd have to take out a personal loan or use your credit card during a financial crunch, both of which come with exorbitant interest rates.

Most lenders do not consider your credit score when you apply for a gold loan because the loan is approved by the jewellery/coins that you deposit with them. Additionally, if you are newly employed, self-employed, run a small business, work in the farming/unorganised sector, or are a stay-at-home parent, it can be difficult to demonstrate uniformity in your regular income to a commercial bank that disburses loans or gives credit cards based on your credit score. Gold loans are helpful for such people since they are granted funds quickly and with minimum paperwork.

To conclude, Muthoot finance gold loan is a good alternative in an emergency or prevalent instant cash availability. This loan offers various advantages to the borrowers, and due to gold’s monetary value, a good amount can be acquired.

Must Read- How gold loan can reduce risk of loss 

One thing to recall is that a gold credit isn't constantly applied only for monetary crises or needs. There may be different employments of gold advance and it's totally the applicants' or the client's decision on what they wish to utilize the gold credit for. Presently, let us momentarily take a gander at a couple of the sub-classes of the gold credit in different financial organizations and how they are placed is used when the up-and-comers and clients get given the gold advance from the separate banks.

For example, let us consider a borrower has been applied and endorsed a gold credit from Muthoot Finance bank and the Muthoot Finance gold loan per gram rate might be unique in relation to the next financial organizations, so we will consider the different classes where this specific gold advance rate can be utilized in.

Gold credit under the Agricultural field -

These sorts of gold credit fundamentally for horticulture are exposed to the ranchers in enormous number, and when this gold advance is worth it very well may be of significant assistance for the ranchers to accomplish the acquisition of different crude materials for the harvest use, keep up their property, appropriate support of the capital, to buy the essential hardware and to recruit the laborers and pay them their wages as needs be.

Gold credit under Medical crisis field -

Gold credits can be available on a more secure side for health-related crisis causes since we can't foresee any sort of crisis. At the point when the gold advance is taken, for this reason, it tends to be utilized to satisfy the doctor's visit expenses, bear the clinic rates, pay the specialists charges, and so on These credits can likewise be utilized when some sort of abrupt medical procedure must be done and furthermore can be utilized for clinical the travel industry reasons. Interesting points are, these sorts of clinical advances can be somewhat high, that is the paces of interest will be more contrasted with the horticultural field of advances.

Gold credit under for the Weddings fields -

Weddings may have a ton of tension on the families to adapt up to the high rates and costs which incorporate the expense of facilities for individuals, to book a wedding corridor in certain days in cutting edge, the expense for the gems and bits of garments, and if it's an exotic marriage all things considered the movement rates will likewise be high. Subsequently, when a gold advance is taken for the wedding, all the previously mentioned rate components can similarly be more straightforward to pay for and the wedding can occur with no concerns.

Gold advance under the Higher Education field -

This sort of gold advance is one which has expanded interest sometimes and this is since the majority of the understudies decide on their more elevated level schooling in colleges which have high educational cost costs and these are for the most part the Overseas colleges and universities which are liked by a large portion of the youngsters. At the point when an advance is taken under advanced education, it can make the method simpler by giving cash to pay the college charges, the expense for the convenience of the youngster, and can likewise make the movement somewhat less complex.

Gold advance under the voyaging field -

Everyone wishes to investigate and go to places sometimes, however, voyaging can accompany a specific scope of high rates and costs, and henceforth a large portion of them nonconformist. However, when a gold advance is introduced, it can likewise be utilized for the voyaging reason for a person as it will assist them with the cost of ticket booking, inn or the room fulfilments and so on Consequently the vast majority of them apply for a credit against the gold ahead of time before they plan an excursion or wish to visit.

Always check the gold Loan eligibility before going for the loan. These are not many of the well-known sub-classes of the gold advance which can be extremely useful to each gold credit holder.

Must Read:- What should you look while obtaining a Gold Loan 

In contrast to an individual or home advance, the gold loan is viewed as a protected type of getting for the two banks and borrower. There is trust in the eyes of the loan lender, as he authorizes an amount of sum to the borrower against gold insurance. Basically, a borrower can benefit from advances from banks by giving their gold gems, coins or bars as security with them. On occasion, the borrower completes reimbursement of their residency, the bank returns the sparkling metal on the due date. 

One of the vital benefits of applying for the gold advance is that they are handled in practically no time and are, for the most part, saved for short to medium term span.To apply for gold credits, a client should be over the age of 18 years and should possess the yellow metal. The purpose for why a gold advance is simpler is on the grounds that the financing cost on these types of advances are less expensive contrasted with other accessible choices like individual credit.

Additionally, the tenure is entirely adaptable, fluctuating from not many days to 5 years. Moreover, a bank or NBFC doesn't impose any pre-instalment charges on gold advances. Reports required for this type of advance are additionally less. Albeit gold credits look alluring contrasted with different choices, there is a rundown of components a client should recall prior to applying. 

Here are a few tips to remember while taking a gold advance -

1. The RBI has a rule commanding that gold advances not surpassing 75% of the worth of the metal pawned can be given out. The rate frequently contrasts from one bank to another, so on the off chance that you need a higher advance sum, there may be moneylenders offering you a higher rate.
   
   
2. Most banks, like Muthoot Finance gold loan, don't charge high handling expenses on Gold credits, and the rate is normally under 1% of the advance sum. In the event that there are moneylenders charging a higher preparing expense, that is unquestionably not the well-known pattern, you can move toward an alternate bank.
   
   
3. Gold Loans are adaptable, more adaptable than unstable or different types of got advances. Contingent upon the bank's terms, you can even decide to pay simply the premium on a month to month/quarterly premise and pay the head toward the finish of the residency. Likewise, on account of gold credits, the disbursal time is super-fast as well.
   
   
4. Ensure you contrast various choices accessible and various banks. It is additionally prudent to do some exploration on the validity of the bank while likewise giving close consideration to the reimbursement terms. Monitoring the nature of the gold in your ownership is key too. To apply for gold advances, a client should be over the age of 18 years and should claim the yellow metal.

Conclusion -

Gold loan is a standout amongst other advanced choices today. Why? Indeed, essentially on the grounds that it is not difficult to obtain. Such advances assist you with getting monetary guidance in a difficult situation. This is likewise one reason why the gold credit market has stayed well known among the masses for a long time now. Other than banks, different NBFCs also have begun zeroing in on this area. While gold advance has different advantages, while applying for it, individuals should step with alertness.

Read More:- Should We Avail Gold Loans? 

The two most prominent types of loans under secured loans are gold loan and home loan. At the same time, one of the most common examples of unsecured loans is personal loans.

What is the difference between these two types of loans anyway?

Gold loan: 

It is a form of secured loan wherein the individual pledges their gold ornaments, jeweller, gold bars or coins to get money for the value of the gold based on the gold rate today that is the rate of that amount of gold on the day you are applying for a gold loan. Availing of a gold loan is a simple process. It does not require you to have a credit score like the other type of loans expect you to have. All you need to have is a stable and steady job that gives you sufficient income to pay the interest amount in whole every month and manage other expenses.

It doesn’t matter what your profession is or what kind of job you do. You need to be in a position to pay the interest for the amount that you borrow. You can be any age, but you have to be above 18 years to avail yourself of a gold loan in your name. The documents required to avail of this loan are the same as any other kind of loan. Gold loans also offer you loans for lower tenures, making it easier for you to get the amount and finish paying off the credit as soon as possible. One such bank that offers excellent gold loan services is the Muthoot finance gold loan.

Personal loan: 

It is an unsecured form of loan. The individual would only have to pay the processing fee for the application, have a decent credit score, and be eligible to avail the amount they wanted. A personal loan has various advantages. The amount borrowed from a personal loan can be put to various uses and its long loan tenure helps you take less tension and plan your expenses for the next few years accordingly. Having a personal loan would also instil financial seriousness in you. 

That means you would be very careful as to where, when and how you spend your money, and you would be careful not to overspend. Because you would need to have money to pay the interest amount the next month without fail. Failing to repay the monthly instalments would have a negative impact on your credit score or CIBIL score. However, unlike a gold loan or any other type of secured loan, in the personal loan, you do not have to provide any surety to be eligible to avail of a personal loan.

The eligibility criteria for a personal loan would be that the applicant would have to be above 18 and less than 65 at the time of the loan maturation. The documents required to avail a personal loan are the same as what you would submit to avail of any kind of loan. But you need to be really careful and well prepared about your CIBIL score.

Conclusion: 

Both gold and personal loans have their own advantages and disadvantages. But the applicant has to keep in mind the requirements for the two and decide which type of loan would suit their personal needs and preferences and to avail the loan accordingly.

Must Read:- Which Lender Is Best For Your Choices In Personal Loans? 

A gold loan is the type of loan where a person can avail of the loan by pledging the gold available in the form of gold and the condition of the coin.  A person will have to be an Indian citizen to avail of a loan. Other criteria need to be checked and followed as per the different criteria and the bank's eligibility, and the NBFCs. The better the options, the easier will it be to repay the loan. As per the requirements, one will have to check and do research to maintain the balance between the payment of the loan and the payment of the other loans. 

The official websites of the different banks and the NBFCs are filled up with varying calculators like that of the eligibility calculators as well. There are other ways of opportunities where a person will have to go through the different kinds of official websites of gold loan eligibility. Gold loan calculator is the type of calculator where a person will estimate the query one is having. For example, the gold loan calculator of the ICICI bank is such that there will be not too much complexity in the matter.

 
There are other options as well. Where one will get the column of carats, weights and the loan amount, which will give the instant answer on the filling up of the columns, in this way it reduces the pressure on the bank staff and also helps the customers to understand their requirements and whether they will need to arrange more or what will have to be done to get a real-time answer as well. Muthoot Finance gold loan offers such facilities. In this way, the gold loan calculator of the ICICI bank works actually. If we move forward, then we can find that in the gold loan calculator of the State bank Of India, one will find the calculator with the column blanks of the name, phone number, address,  loan amount, and weight gold loan and the email ID.

After submitting the information and clicking the submit button, there will be instant information about the estimated status that the eligibility is there or not. State bank of India offers gold loan at the starting of the gold loan rate of 7.50% onwards while on the other side. One can avail the gold loan of about frontage minimum of the Rs of 20,000 to that of the loan amount of the Rs 50 lakhs as well. The amount limit has been kept so that there will not be any problem from the group of the low-income group and the people with high net wealth value.

 
While availing for the loan, some things are there that need to be checked and prepared accordingly. The gold loans can be paid through the EMI and the bullet repayment schemes etc. the loan tenure extends from that of three months to that of the 36 months that is three years. In the Axis bank gold loan case, five columns make almost everything clear. There will be a column for the ornament, which will need to be mentioned what type of jewellery or the form of the decoration is there. Then there will be the column for the Caratage, which will need to be mentioned in the state of purity like that of the 18 carats, 20 carats etc. Based on which there will be a column of the total value and the eligible loan value.

 
Conclusion:
To conclude, we can say that there are many banks and the NBFCs who are having loan eligibility in the form of the calculator, while on the other side of the coin, there will be many options based on which there will be no more.

Must Read:- Gold Loan Secured Loan