Blog #PNB gold loan

Four Gold Loan Eligibilities That Serve As An Advantage

According to the Indian tradition, gold has always been preferred for many centuries as a product of an auspicious thing. In India, about 80% of the family have gold in the form of jewellery and coins. This form of gold is used during the festival time or used while worshipping the king or the gods and goddesses for good luck and is kept in bags and pockets.

In the case of a gold loan, the unique thing is the low rate of interest. On the other side, all the other types of loans have a high rate of interest which acts as a matter of burden in most cases. There is a reason behind the low rate of interest also. There is the availability of the gold loan calculator, which gives better estimation when taking the decision to avail a loan. In most of the cases of the other types of loans, the rate of interest is low due to the dependents of many factors like that of competition among them Financial institutions and gold rate movements within the domestic territory of the country as well as the movement of the price of the gold in the international market.

Age Limits

First and foremost, according to the eligibility criteria for availing a gold loan, most of the banks, nbfc and The Financial institutions have separate legal formalities as per their suitability and the choices according to their business styles and patterns. On an average basis, there has been an age limit that generally ranges between the age of 18 years to 70 years. The age criteria have been made like that because at the younger age of less than 18 a person in the teenage years will be in the studies of the colleges or might be searching for any kind of job.

Therefore, there is no stability or the independence of the financial situation at the very tender age, due to which the age has been kept with the upper limit of 18 years. If we talk about the upper limit of the age criteria, some patterns and factors have been considered. Near about 70 years of age has been kept as the upper limit. After the age of such an experience, there is no more availability of financial dependency as the age for most of the jobs gets over, and the life of the retirement starts over here. The life of financial independence also reduces or gets depleted along with the fasting days and Times.

Loan to value ratio

There has been the loan to value ratio implementation, which means how much of the money in the form of loan you will be getting as per the total value of the gold availing party. PNB gold loan offers a lower LTV ratio for the customers to benefit them. Previously the loan to value ratio went to less, but as time passed by and the different forms of loans have been implemented for the betterment of the customer. The loan to value ratio is lower than the loan amount that a customer wants to avail might not be possible if the percentage is unfavourable.

Nowadays, the loan to value ratio has increased 75% to 90%, and even that of a hundred per cent is also available. There has been a range of between 75 - 100 % of the loan to value ratio in most banks as there is cutthroat competition among the institutions. Not a single company wants to give up their customer due to competition in the market.

Purity pattern of the gold

There has been a pattern of maintaining a purity limit so that the gold becomes acceptable for providing a loan. The purity limit starts from 18 carats and should be below the maximum limit of 24 carats. Anything above or below this limit is not treated as extractable gold for providing a loan. So one thing should be kept in mind after getting gold from other people as a helping hand during that particular time should be examined and evaluated from the goods made that should have a purity limit of between 18 to 24 carats.

Less Time Consuming

Gold loan is also preferred because of its less time-consuming documentation process. It is decided by only proof of address, proof of Identity, passport size photograph and a gold ownership document.

The Role of LTV in GL Approval Process

Gold is an important asset as it can be used by the people to avail loan from various banks and non-banking financing companies(NBFCs) in the financially difficult times. The loan can be issued by any banks or financing companies. For a gold loan the applicant needs to give gold to the lender as the security against the loan. Once the lender has repaid the loan he will be returned the gold ornaments submitted to the lender. It is a very safe loan option which can be availed easily.

Gold loan has been a Saviour. It has helped so many people in financially difficult times. Gold Loan Per Gram ranges between ₹ 2,741 to ₹ 3,350. One can easily get a gold loan at a very reasonable interest rate. For applying for a gold loan visit the online website of the preferred bank or you can also visit the nearest bank branch.

PNB Gold Loan requires easy application with minimal documentation. The documents required 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 also offers amazing schemes on gold loans. One can get a gold loan at an affordable interest rate at the bank. PNB bank is recommended for getting a gold loan. For more information one can check the online website or app of the bank.

Loan to value is used by the lenders to define the ratio of the loan to the market value of the asset. The term is commonly used by the banks and non-banking financing companies(NBFCs). There has been a recent rise on the loan to value on the gold loan. The loan to value of gold loan has increased to 90%. Due to the covid-19 lockdown so many people were affected, so the government decided to increase the loan to value on gold loans. Now people can avail higher loans against gold. LTV is a very important aspect of loan; it refers to the amount of the loan a borrower can avail against the gold as a collateral. The LTV for gold loans is quite high. Banks and non-banking financing companies can lend more money against the gold as per the new rule. This is one of the biggest advantages of getting a gold loan as the LTV offered is quite high and can help dealing with financial difficulties.

There are various features of a gold loan. Some of the key features of the gold loan are listed below:-

The processing time of the gold loan is faster in comparison to other secured loans. The application processing is faster. The loan is processed within 72 hours of the application.
Minimal documentation is required for getting a gold loan. Documents such as identity proof, residence proof and age proof are required. Anyone can get a gold loan providing these minimal documents.
Fast approval is one of the key features of the gold loan. In gold loan the banks and non-banking financing companies(NBFCs) provide fast approval. The loan is sanctioned into the account of the borrower after the verification of the documents.
The LTV value for gold loan is high up to 90%. One of the biggest advantages of the gold loan is that it has quite a high LTV value which makes it ideal in the financial emergencies.
An applicant does not need to provide salary proof. The only thing important for a gold loan is the purity of the gold. Without salary proof getting a gold loan is possible.

Conclusion -

Gold loan has various features but one of the most significant features is its high loan to value(LTV). An applicant can get a higher amount of loan by submitting gold as a collateral to the bank or non-banking financing companies(NBFCs). There are also various schemes which can be availed during a gold loan. Gold loans are very advantageous for the people. Many people around the country are investing in gold. Investing in gold is a smart choice as they are very precious assets in today's modern times.