A gold loan is a secured form of credit that can be availed against pledging gold jewellery as collateral. Even after the availability of various investment and financing options, the demand for gold loans is irreplaceable in the financial market.
Borrowers must know that online gold loan application is convenient, effortless, and time-saving. Moreover, while seeking different loan options available during emergencies, an online gold loan can be viable for borrowers. Thus, to avail of this beneficial credit, borrowers need to know the application process.
Steps to avail a gold loan online and offline
Borrowers can apply for a gold loan from different online websites. If a borrower applies for an online gold loan, they must check the loan eligibility and rate of interest. Getting a loan against gold is quite easy and hassle-free.
Following are the steps to avail a gold loan online-
Step 1- To apply for an online gold loan, individuals need to fill in the application form available on the lender’s website by providing essential details
Step 2- After applying online, a representative from the lender will reach your house and evaluate the quality of gold jewellery which must be 18-22 carat.
Step 3- After verifying all the documents and gauging the weight of gold, the sanctioned amount will be credited to your account.
Alternatively, borrowers can visit the nearest branch of the respective financial institution or NBFC with gold and avail the loan amount after completing the verification process.
Note: No gold coins or bars will be accepted as viable collateral while applying for a gold loan.
When opting for a gold loan, one must ensure choosing a reputed NBFC like Bajaj Finserv. They ensure the pledged jewellery is kept in a top-notch vault and monitored 24×7 for the utmost safety of the asset.
Features of a gold loan
- High-loan value
Borrowers can avail substantial amount by availing a gold loan. Depending on the lender and the market value of the pledged gold, borrowers can avail up to 90% of loan amount. Moreover, it does not impose strict eligibility or documentation due to its secured nature. Therefore, any individual belonging to salaried, self-employed, traders, farmer etc. category and within the age bracket of 21 to 70 years are eligible to avail this loan.
Apart from this, borrowers can only submit their KYC documents and enjoy instant gold loan approval. But borrowers must note that financial lenders may ask to submit income proof along with other loan documents. Therefore, it is wise to keep the list of documents ready to ease the approval process.
- Affordable interest rates
One of the best advantages of getting online is that it offers competitive interest rates on gold loans than other financial products.
- Flexible repayment option
Usually, gold loans are popular among borrowers for their flexible repayment options. Reputed financial institutions and NBFCs offer a comprehensive range of repayment options that borrowers can choose at their convenience.
For example, borrowers can pay the interest amount either monthly or quarterly and pay principal at the end of the tenor. Alternatively, borrowers can pay the entire interest amount at the beginning of the tenor and pay principal later. Other than these, borrowers can pay through the traditional repayment method, combining principal and interest components.
Although there are multiple financial products, ranging from personal loans to credit card loans, they come with extensive documentation, stringent eligibility, higher interest rates, etc. In such a scenario, availing online gold loans can be a beneficial financial option for the borrowers to fulfil the urgent requirement of funds.
This financial product comes with a lower interest rate for its secured nature, less documentation, easy-to-meet eligibility etc. and can be applied from anywhere, anytime.
To conclude, borrowers must factor in other loan related factors, such as current market value of gold, pre-payment or foreclosure charges, processing fees etc., before availing an online gold loan from a lender. These charges will increase the borrowing cost and can lead to financial strain in the long run.