Way to repay your gold loan

The gold loan is a financial service in which a loan against gold is given where gold is pledged by the borrower with the lender and the amount is sanctioned by the lender after verifying the quality of the gold. One of the biggest advantages of the gold loan is the ease of availability. Lenders are generally banks and financial institutions including NBFCs. The gold of the borrower is extremely safe with the lender. The lender makes sure of taking due care of the gold lying with them.

To avail of a Gold loan following eligibility criteria needs to be fulfilled-

• The person applying for such a loan has to be a normal resident of India

• The person must have completed his/her 18 years of age

• He/she must have a self-owned house property in their name

• He/she must have in their possession and ownership the Gold which they are pledging with the bank.

Following documents are also needed to be filed for applying to a Gold loan-

• Identity proof such as Aadhar card/ Voter card/ Pan Card/ License

• Residence proof such as Utility bill of house/ Adhaar card/ Voter ID/ License

There are several ways to repay your Gold Loan. Some of them are described below-

1. Bullet Repayment

Here, the applicant has to pay only the interest rate during the term period of the loan and the principal amount has to be paid at the end of the loan tenure. However, this option is provided to the customers who are availing of short-term loans. The interest rate is paid through EMI every month.

2. Overdraft Facility

This scheme is famous especially amongst the self-employed. In this scheme, a person in need of money can withdraw it anytime they want. With this difficult situation of the pandemic, this repayment facility becomes extremely helpful. Here, the applicant can choose the amount which they want to repay as interest from their total loan amount.

3. EMI Facility

In this facility, a fixed amount has to be paid each month to reduce the liability of the loan substantially. This is one of the most common ways nowadays not just in gold loans but in almost every significant purchase made. The customer gets the loan and an EMI is fixed which has to be paid each month.

The gold loan has many advantages but the most significant it has is on the CIBIL score of an individual. A person can improve their credit score with the help of a Jewelry Loan. Although there is no requirement for a good credit score to apply for a gold loan, a gold loan can improve the CIBIL score of the person applying for such a loan. A gold loan is a secured form of loan so banks are very less concerned about the CIBIL score of an individual. If a person makes a default in repayment of the loan amount, banks always have an option of selling the gold so pledged in the open market.

But with timely repayment of the gold loan amount an individual’s credit score improves which not only helps them in significantly raising their chances of getting not even gold loans but any sort of loans in the future.

With the advent of digitization, gold loan is available at the fingertips. A person willing to apply for a gold loan can do it online through the bank’s portal. Banks and other financial institutions offering the gold loan have made the process so simplified that now it is very easy to apply for a gold loan online. The customer has to only visit a bank branch once to submit the gold to the bank. Rest all the process can be done through an online platform. The loan amount gets disbursed very quickly within hours in the bank account of the person who applied for such a loan.

Conclusion

A gold loan is a very beneficial financial service that can help a person to overcome the financial crisis, repay their existing debts, incurring any other expenses, to improve their credit score.

Why Financial Market Includes Gold Loan

If the comparison is done between the gold loan and the personal loan, gold will-will be considered to be a better choice than that of the personal loan. The first and foremost reason is just safety and security. It has always been seen that to run the business part and do the exploitation by keeping a high rate of interest of the personal loan. As on the other side of the coin if a person is required for an urgent situation it is already in the mind of the banks and Financial Institutions that day take the loan at any cost getting any option from anywhere.

Dialabank provides an ample number of for a better experience of the Gold Loan Interest Rate so that the customers are the candidates can come to us again. Along with the passing time the smart people have got to know about the advantages of the gold loan and the disadvantages of the personal loan which used to be as as a weapon by the banks and financial institutions.

Good advantage as there is a low risk of pen and paperwork which can be a matter of forgery and the increased risk of losing the application forms. It is advisable that if anybody is while applying for any kind of gold loan should follow the online and digitalized application can go through mood procedure of a Gold Loan about falling into any kind of trap and problems.

Nowadays the financial firms and the banks are using the advantage of the high demand of the gold loan into the market which exorbitantly what is the demand of loan from the pawnbrokers and money lenders and bringing back with the same service with the banks at a lower rate of interest thus affecting.

There are few reasons for which the bank and the NBFCs. Are providing the high range of gold loans which in turn can be saved the reason for the financial market to appraise gold loan product.

If one can proceed for the first reason that is minimal documentation. Many persons who don't know about the gold loan at the time of the requirement always approach the easily available options but do not look after the fact that rate of interest for different things. For example, the gold loan can easily be available with an indigenous banker the rate of interest can be too high as well as I will have to follow the rules of the indigenous banker which cannot be similar to the norms of the regular official one. On one side gold is a type of jewel and the availing of the loan is can be done to apply Jewel Loan.

There are many kinds of payment options which are very much flexible with the customers and make it attractive and the customers find it easy and that that is why they are having the demand for the gold loan.

Many banks have a procedure of waiver on foreclosure of the loan where a particular amount is paid before the expiry of the loan the bank will allow to close the loan what are the dept for that particular period for a particular year.

Conclusion

There are also different and ample kinds of schemes of payment of the loan is available. On one side of the coin different kind of schemes of payment is also allowed while on the other side of the coin spot payment for Bullet payment sale also allowed. One can we pay the principal and the out of interest after the expiry of the period. This is one of the best advantages or the great reason for not availing the other forms of loan but go for a gold loan from recognized banks only.

Some lenders offer the best deals on used Car Loans

Before availing of a used car loan, one must search the market for the best deals, and a Car Loan EMI Calculator helps in comparing the interest rates and monthly EMI that has to be paid. Further, we have listed a few major banks that are offering the best deals on used car loans.

HDFC bank:

HDFC bank is one of the lenders in the market that offers much more than just credit.

Important features:

• It provides end-to-end advisory that starts from research to the title transfer.

• One can avail personalized help in order to choose a car that will meet one's specific needs.

• The customers of HDFC bank enjoy preferential pricing.

• They make use of their in-house site in ord

er to compare and get hold of good quality cars.

Loan amount allowed:

An individual can avail of a loan of up to INR 2.5 crore on various ranges of used cars and multi-utility vehicles. It offers the eligibility to avail between 3 to 6 times one's yearly income and allows one to borrow a loan up to 100% of the value of a used car, as long as the car's age during loan maturity does not cross ten years. Also, it subjects to a maximum loan tenure of 60 months.

Loan without income documents:

• An individual is eligible to avail 80% of the car's value as the loan amount for a time of 3 years without any income proof.

• One can avail up to 85% of the value of the car as a loan amount for a time period of 5 years without any income proof.

Eligibility:

Salaried individuals willing to avail of an HDFC used car loan need to have had a job for a minimum time period of 2 years with a minimum of 1 year with the current employer. The minimum income criteria for these individuals is INR 2,50,000.

• Self-employed individuals who are engaged in sole proprietorship businesses require to be in business for a minimum time period of 3 years and should be earning at least INR 2.5 lakh per annum.
  

• Self-employed individuals who are in partnership firms or private limited companies should be having a minimum income of INR 2.5 lakh in a year in order to qualify for the loan.

Interest rates and other charges:

• Interest rates range from 13.75% to 1%, which depends on the age and segment of the vehicle.
  

• Processing fee charges are 1.50% of the loan amount that ranges from INR 2,500 to INR 5,000.
  

• Lastly, no foreclosure is allowed within a time period of months from the date of the loan availed.

SBI bank:

Loan amount allowed:

In SBI Bank Car Loan, a minimum loan amount of INR 3 lakh and a maximum of INR 10 lakh is allowed under a pre-owned car loan scheme.

Eligibility criteria:

• For salaried employees, a total annual income of INR 2. Lakh is required to avail of this loan
  

• In the case of self-employed individuals, professionals and others, a net annual income of 3 lakh is required
  

• And for individuals who are engaged in agricultural activities, a net annual income of INR 4 lakh is mandatory.

Interest rates:

A rate of interest begins from 11.05% to a maximum of 12.05%, depending upon the individual's credit score.

Tenure of the loan:

To calculate the maximum allowed tenure, the age of the vehicle is subtracted from 8 years, and the tenure that is arrived cannot exceed more than five years.

Documentation:

One will need the following documents for applying for a pre-owned car loan in SBI bank:

• Proforma Invoice
  

• Copy of Seller's RC book
  

• Copy of Seller's Motor Insurance