Online method to avail Gold Loan

A gold loan is a method of financing in which a borrower pledges their gold with the lender for a short period. The lender after performing a quality check of the Gold assigns the amount which can be provided to the borrower in exchange for the gold so pledged.

Gold loan is one of the safest ways of arranging finance. It is a secured mode of getting finance so it also does not keep banks at the edge of their seat. In case funds are not received, they can sell gold in the open market and can recover their money. The benefit of the person getting a gold loan is that a gold loan is a very easy way to arrange for finances in a very short period. The procedures of getting a gold loan have also been very simplified.

With the advancement in technology and a rapid explosion of digitization, most of the services of banks have been bought online. Now customers with just a few clicks can get a gold loan very easily which some years ago seemed impossible.

Banks and lenders have invested significantly in developing their mobile apps and websites through which they provide almost every banking service to their customers. This saves a lot of running costs on the part of banks and customers gets benefited from the ease of operations and saving of their time and energy which earlier got invested in visiting the bank branches again and again for documentation and other stuff.

Nowadays one of the easiest ways to apply for a gold loan is online mode. The customer just has to visit the branch once to deposit their gold with the bank and all other tasks can be done online. Through a bank’s online portal getting a bank loan is just a matter of some seconds. Many banks provide gold loans at competitive rates. Gold loan interest rate vary from bank to bank. Some of the major banks and their interest rates are disclosed below:

1. SBI gold loan (9.50%)

2. HDFC gold loan (9.90%)

3. Dena bank gold loan (7.10%)

4. Axis bank gold loan (10.50%)

These were only some of the major lenders. There are many available in the market to choose from. HDFC gold loan is known to charge one of the lowest interest rates in the market while HDFC and Axis banks are famous for their services such as fast disbursement and after-sales services, SBI itself holds the reputation of being the largest banks in the county. So each service provider which makes it better than the other. The customer should carefully analyze all the options available and choose the best one for them.

Even to apply online for a gold loan a customer has to fulfill certain criteria-

• The customer has to be of 18 years of age or above to avail of the gold loan

• The customer must be an Indian resident

• The customer must have a self-owned house property in his/her name

• The gold must be in the possession and ownership of the customer who is applying for such a gold loan

Various documents are also required to be filed even though a customer is applying through online mode-

• Proof of identities such as Adhaar card, Voters ID, Pan card, and any other identity proof accepted by the bank

• Proof of residence such as Utility bill of the house/ Adhaar card/ Voters ID, Pan card

The good thing about a gold loan is that it can be availed by the person even having a low or an adverse CIBIL score. As a gold loan is a secured loan, banks are not much concerned about the CIBIL score of an individual.

Conclusion:-

Getting a gold loan has been made very easy by the banks. One of the fastest ways to avail of a gold loan is online, that is by visiting the portal of a bank from which you are interested in taking the gold loan. By taking everything online, digitization has proved to be very beneficial for banks as well as customers.

How to reimburse a Gold Advance?

While getting a credit might be clearer, the installment technique might be confounding. Understanding the loan fee of EMI installments, pre-shutting costs, cost subtleties, and other little subtleties can be scary. Contrasted with different credits on the lookout, the strategies for reimbursing a Gold Loan are a lot more straightforward. Additionally, they offer you a wide scope of installment choices, offer simple installment choices, and time-changing gold advance reimbursements likewise shift, permitting you to pick the best one.

Techniques for Repaying Gold Loans

Gold credits are transient secure advances, that is, endorsed dependent on substantial gold resources that go about as insurance. Installment techniques are additionally adaptable; Lenders regularly offer banks four unique alternatives for reimbursing a gold advance:

Normal Monthly Installation

Under the EMI gold credit alternative, you can reimburse the chief loan cost and interest on equivalent portions throughout some time. The term or length of the advance might be resolved at the hour of the advance. For those borrowers who might want additional time and might want to save money, a more drawn-out term advance alternative might be liked. Normally, most organizations have adaptable installment plots that offer time frames of 6 months and three years. The State Bank of Bikaner and Jaipur Gold Loan gives simple regularly scheduled payments that make it possible for the borrower to pay.

Regularly scheduled Payments

With month-to-month gold credit reimbursement choices, the sum needed to be paid just incorporates revenue acquired each month. This is rather than EMI installments as no piece of the chief expense is required. All things considered, interest installments are determined dependent on the leftover worth and the equilibrium remaining. This cycle proceeds until the advance develops.

Gold credit projectile installment plan

On the off chance that you can't stay aware of standard EMI installments under any circumstance, be it pay or simply an installment plan, at that point you can pick a gold credit that takes care of coins. The reimbursement of credits permits you to reimburse both the advance sum and interest toward the finish of the advance time frame. This implies that if your gold credit reimbursement period is a year, you can pay everything when you are experienced. Even though interest will be determined month to month, it might be paid toward the finish of the credit term you have picked.

Fractional prepayment

On the improbable occasion that you hear that standard EMI timetables or gold credit reimbursements are not appropriate for you, at that point the incomplete installment alternative exists. This permits you to reimburse the advance at whatever point you need. In contrast to the EMI alternative, where you need to pay routinely, or the investment opportunity where you can just close the advance toward the end, a halfway installment can be made simpler for you.

Abandonment

Gold credits can likewise be shut early, that is, settled upon off completely before the due date. Regardless of whether you have settled on a gold advance with an EMI installment framework or a gold credit with a coin, you can in any case decide to pay the full required sum before the finish of the advance time frame. The divulgence of a gold advance lessens the measure of interest you need to reimburse, in this manner assisting you with saving a specific measure of interest that would somehow be gathered all through the advance period. Most gold credits typically convey an early shutting charge, or in any case with gold advances.

Utilizing an online entryway or versatile application, you can pick how you pay and make all installments on the web. Installment choices accessible incorporate internet banking and cash move. Whelp offers the choice to add yearly installment plans after the initial half-year installment plan contingent upon the borrower's time. To assist with standard installments, CUB likewise gives ideal updates.

Basic factors need to be considered for Gold Loan

There are various factors that a prospective borrower needs to pay heed to before availing of a gold loan or looking at alternatives available.

1. The current price of Gold- It is important to consider the market ups and downs when going to mortgage one’s gold articles. Gold prices are dependent on a plethora of market factors like inflation, global demand, market movement, RBI guidelines. therefore, it is feasible to go for a gold loan when the price is the highest.

2. Source of the loan- While there are both public and private players in this segment, consumers must verify the terms before engaging with any bank or non-banking financial company. Customers can additionally look at the terms on any bank’s website by clicking on Gold Loan Apply Online and going through the various stipulations.

3. Period of the loan- Gold mortgages are more often than not, shorter tenure loans used to suffice immediate monetary lapses. Customers must be sure to pay back the amount within the timeline to avoid penalties or losing the assets secured in the first place. While most standard schemes permit up to 12 months for repayment, aspirants for longer durations can apply for overdraft features offered by leading providers like the Canara Bank Gold Loan scheme where the time limit is 24 months.

4. Repayment structure- Firms offer different schedules of repayments. While some uniformly divide the principal over the tenure of the loan, others collect it along with the principal on the maturity of the agreement. Proper research and evaluation of alternatives are warranted to judge the best fit for the borrower.

5. Interest Rates- This is perhaps the most important factor that plays into how much more one has to pay back over what one has borrowed as principal. Different banks offer different levels of interest and special concessions are given to senior citizens and women entrepreneurs looking to start a business of their own.

6. Valuation method- The value of gold articles to be mortgaged is determined by the bank through jewelry partners or certificates issued by the same. This is where the concept of a Gold loan per gram comes in. The purity of the gold whether 18kt, 22kt, and 24kt all attract various rates. The purer the gold, the higher its rate per weight, and thus the loan amount against it will be higher as a result. LTV or loan to value proportion is a pertinent factor in gold loans. For example, if the gold mortgage is valued at 1 lakh and the LTV rate is 80%, then the maximum loan amount sanctioned against that security would be 80,000. The higher LTV a bank offers, the better it is for the client.

7. Other costs- Most banks or NBFCs charge a 1% loan processing fee, which is subtracted from the disbursed amount. There are also other fees that some banks charge and need to be closely examined before proceeding with the application.

8. Documentation- Gold loans do not require conventional documents like income certificates or credit reports, rather proof of ownership like receipts and jewelry certificates play an important factor in these applications. Without checking the veracity of these papers no firm will give out any money against gold.

9. Prepayment fees- In case a customer has managed to accumulate the total amount due before the scheduled date of maturity, most banks charge prepayment fees for foreclosure of a loan account.

These cover the essential elements of any loan agreement and stand true for Gold loans in the Indian context.

Conclusion

These basic factors need to be closely examined by the prospective customer while considering a banking partner for their mortgage needs. Most banks have made doorstep and online booking for such loans available which makes the evaluation of these factors extremely simple so that the customer can choose the option that works the best for them giving the highest loan return at the lowest possible interest, and thus providing total value.