Is Gold Loan Secured Loan ?

People mostly get stuck with the personal reasons of expenses like helping any family member but not having enough balance left in the salary at the month-end. There might be some educational needs due to which an exam application form is left every time due to lack of financial support. There might be some courses which a person after college needs to be trained into himself by taking admission in a training institute to get a renounced job in a good company. There might be some requirement for medical treatment due to the sudden happening of an accident. Else would have been met with the accumulated amount of savings or the mediclaim if done at the right time.

Gold loan is having an extensive range of customers. The reason behind the facts is that the gold loan is the form of loan where the gold available with a customer is pledged against in the bank or the NBFCs, and on the proper valuation of the gold, the amount of the loan is will be disbursed, and thus the loan proceeds will be executed—a few reasons why the gold loan can be considered the most secure form of a loan.

The gold loan is the most preferred form of loan where the eligibility criteria are significantly more minor to fulfil than all the other formats of the loans. The gold loan amount can be used for the same reason for which the personal loan, car loan, education loan or the business loan, etc., given that such amount of gold should be with the applicant to meet those expenses. According to the rules and the regulations, the Indian citizen applies to avail a gold loan if the person is within the age limit of 21 years and 70 years.

The age limit has been kept because there is a consideration that a person of the age of 21 years is financially independent and is capable of paying by self and on the other side of the coin, the maximum age limit has been kept in the 70 years due to consideration at the age a person is not financially independent anymore.

A credit score is a score where the creditworthiness of an individual is judged based on which the loan is availed. If we talk about the personal loan, there is the mandatory rule of having a solid good credit score where there will be a good credit score if the credit score is about 700 marks. Agriculture Gold Loan is also having the advantage of no effect on the credit score for the farmers. In the case of the gold loan, it is not required. If we talk about the car loan, there is the requirement of the same credit score and the compulsory down payment, which is a hectic option and very complex if compared with the gold loan.

It is advised that if the same amount of gold loan is availed, then the problem will be; less as the documentation will be less, less time consuming as well as the risk is less with no requirement of the credit score, and the purpose will also be met. All these things are done based on the valuation as per the gold loan per gram standards. If we talk about the educational loan, then there will be the strict requirement of collateral and a certain percentage of the marks and are not always there in order to fulfil, especially the students who have compromised financial status.

The purity of the gold is there, which marks the difference between the fake or diluted gold or the original gold. The purity of the gold should be between 18 -24 carats to pass the purity certification by the banks and the NBFCs. For example, HDFC Gold Loan also follows safety rules for the customer's interest.

Conclusion

To conclude, we can say that the gold loan is one of the most secure forms of loan where a customer is required to implement some of his basic ideas and plans as per his suitability to have a great deal and execute the loan procedure properly without any issues. The current covid situation also proved that their gold loan has been acting as a boon as most of the Indian houses have some quantity of gold, so it's better to use at this time of the covid crisis else it will be kept as metal only without any use.

Why my car loan application is rejected?

Taking a car loan has been easier only if you have accurate documentation, good financing behavior, and high scoring credit history. But a few of them fails in succeeding the car loan application because of some crucial challenges in the process. We have got a few feedbacks from our customer on getting the car loan application rejected even after having a good CIBIL score. Let us tell you that there are a few challenges and hurdles that every applicant needs to go through and cross it to approve the car loan application. These hurdles are hidden and the applicant fails to vision them. In this article, we will provide you some potential insights and answers that will help you from saving your application to go to the rejection zone. We would request you to study the reasons carefully as it will guide you in a very positive way in the future.

If the borrower’s loan application has been rejected many times then the information remains present with CIBIL and the earlier prospective lenders. When the borrowers apply for a fresh loan, the history is pulled up by the new lender. Moreover, the rejected loan info can even be improved with the Credit Information Report and a good CIBIL score of the borrower resulting in the applicant’s loan rejection.

Opting for a loan with friends and relatives

If you have already applied for a loan with your friends or sister then your application shall be rejected. Joint loans with brothers or parents are mostly preferred and approved in the banking industry.

Co-applicant has poor CIBIL record

If you are borrowing a loan with another applicant, then you should ensure that the co-applicant’s CIBIL record is on the mark. If your co-applicant has a poor CIBIL record then your application is dropped into the rejection section and they are high chances of never applying for a loan again.

Unbalanced Secured and Secured Loans

There is a healthy combination of secured and unsecured loans in your loan section. Secured loans are home loans and car loans that attain by the borrower by keeping the applicant’s assets such as property and car as collateral with the creditor. This indicates a signature loan. If the loans are unbalanced in terms of unsecured loans outweighing secured loans, then lenders will term you a bulk credit debt and reject your car loan application even when you’re scoring a good CIBIL history.

Making Frequent Queries

If you apply for multiple car loans at the same time or submitted an application for the same loan to other lenders, you will term a frequent inquirer by CIBIl even when you are good with your CIBIL score and credit history. There are complete chances of standing your car loan application in the rejection.

Demonstration of Savings

If the borrower showcases the lender applicant’s savings then the lender has a good chance to cross-check your financial profile. Canara Bank Car Loan EMI Calculator helps you calculate your CIBIL score. Moreover, if the borrower does not submit a detailed financial profile with the savings portfolio to the lender, then the loan may get rejected.

Unable to confirm credentials

If the lender fails to confirm or verify any part of the borrower’s key credential information for a period of time, then the borrower application stands on a rejection zone regard having a good credit history.

Hope we have to provide a good amount of information on the challenges faced by the applicants in the car loan application process. If you are looking to get a loan, a Car Loan Apply Online facility help you in availing the loan from the mobile app. If you have any doubts regarding the subject or are still confused about making it to the car loan, our customer care support is willing to help you with appropriate information on the same.

Maintain CIBIL Score When The Avail Car Loan

The car is very convenient for use if we want to go from one place to another place. This is good for us, this is mostly considered a status symbol too. Purchasing any of the cars always seems very much like an important event even though you can detest using this all day for your commute. Like different assets that cost a lot, the car is always generally brought on a loan from any of the best banks or financial institutions. You should always be aware that the CIBIL score is very important for you to get a car loan or other loan.

CIBIL score is a numerical representation of creditworthiness as measured by most of the factors of your credit behavior. this should be more than 700+ if it is less than 700 then you can not easily choose this loan. Now that you know some of the factors that always affect your CIBIL score, this is always very necessary to know how very simply availing this loan. All the basic actions that you simply take about the credit can always affect the credit score. This simply starts right from the application to credit till the payment of the last EMI as well as prompts closure of the car loan.

This can either make or break the credit score with the credit action. Let simply see how different the credit actions of regard to the car loan can end up affecting the credit score. The car loan is a very big-ticket loan that can go on for a duration little bit longer than a year. Often the car loan tenures period range between 3 to 7 years it depends on the person and lenders. Whenever you simply apply for a car loan, the lender very simply makes a hard inquiry with the credit bureau to know about the creditworthiness. If you are simply making the plan to apply for other loans.

The application for the car loan can simply help you as this is a very secured loan. If you have just availed of different types of unsecured loan. A car loan which is a very much secured borrowing can always help you set the balance and improve your CIBIL score. Repayment of your loans always plays a very big role in deciding your CIBIL score of any of the individuals. Repayment history is a very big factor that always determines your CIBIL score and this has a little bit of a high impact on the credit score. And Car Loan Interest Rate is very less if you see different types of loans.

And on the different side, by not repaying your EMIs on period, you are also risking the credit score. You can also end up incurring additional charges on the penalty as well as late payment fees. Further, if you are not simply able to pay off the loan and have to approach the bank to write off or settle this type of loan, this action can also see a little bit of an impact on your CIBIL score. You simply consider paying off the car loan. Whenever you repay your loan, you will be freeing up that part of the income which is being used by the car loan installment.

Conclusion

A Personal Car Loan Online is the best choice to avail of this loan because online you will simply get very many benefits and your time will save. If you want a car loan then you have the best option to avail loan online. Most people want to only choose online options because they