Fastest Way To Avail Gold Loan

The offline mode of availing of the gold loan is very risky a particular person approaches the bank or any kind of Financial Institutions. A person physically has to be present over the counter of the bank of the financial institution he will need to fill the particular form of the loan application giving all the relevant details which will be asked for in the application. After all the details are filled in properly then the person will have to hand them over to the particular related departmental officer who will submit or will say a particular next date for coming and getting the confirmation.

After the confirmation of the loan application successfully getting submitted then the particular person will be asked for presenting the gold for physical verification as well as for the valuation of the gold according to the current market prices. As per the current rules, there has been a mandate that the particular account of the loan should not exceed the 90% of the value of the particular gold. People perform and go through this kind of loan because it is a very secure form of loan where people easily get attracted as the rate of interest is very low and one will not have to sell their gold or asset to anyone once the final repayment will be done, the gold or the asset will be returned.

This form of loan has been implemented and was going through for a long period is generally in the village areas of the country. There are a few advantages of availing of a gold loan through offline mode. The main thing is that it does not require any kind of internet for any kind of medium because a person physically is involved in availing the whole procedure of the gold loan from the bank.

Firstly a person will not have to wait. One can easily go through the websites of the particular gold loan provider and check all the terms and conditions accordingly which will be suitable or not for the candidate of the customer availing the gold loan. There is very little pressure on the pain and the paperwork because most of the things are done online and the digital platform where a person can easily go through with the use of the internet and events can be done. One will not have to carry a particular paper application form from one place to another. The chances of the risk of forgery at any particular place are eliminated in this kind of method of gold loan availability.

Due to less documentation in this particular type of availing of the gold loan only the proof of address and the proof of Identity is required to be submitted. Other optional documents can be mandatory ones on different kinds of loan providers which are already the same. In the meantime, this particular thing is that there are few opportunities as well as which act as a to the gold loan providers as well as the gold loan seekers. Customers who are very much thankful for these kinds of methods of availing the gold loan. For example, if someone is inactive very far studying in a particular town but nearby there are no physical gold loan providers they can approach but after going through the website and following every information. One can easily get the information of terms and conditions and the other relevant things about the gold loan which are available to their websites and proceed in life accordingly. For example, Future Capital gold loan providers are also having such advantages.

Conclusion

This is a great threat to national security as well as the security of an individual. To remain safe a person should always use the correct website with all the proper security and safety while browsing the internet. One should always have to be careful while filling up during a gold loan apply online.

WHAT IS GOLD LOAN?

As gold is considered a precious metal for a middle-class family. They invest in gold as they can use this investment in their future. Many people go for gold loans. A gold loan is a process in which a borrower takes a loan from lenders by undertaking their gold ornaments. Whenever a person thinks of a loan, he or she always considers the benefits that will come up with the loan.

Gold Loan Per Gram is also getting popular day by day. Due to lack of time many people go for gold loans. With minimal documentation and with full security the loan gets sanctioned.

Advantages of gold loan

• Fast processing

As they are the secured loan and it includes easy eligibility criteria. It also offers minimum document requirements. It does not require a credit score for approvals. so, the loan is sanctioned by lenders as soon as possible. People can apply for loans online or offline.

• Lower interest rate

An unsecured loan is a property loan, education loan, car loan. interest rate while in the gold loan the interest rate is low. Further, the rate of interest will get lowered by adding another asset's collateral.

• No processing fees.

Processing fees mean there would be no fees. Usually, lenders charge 1% of processing fees, not more than that.

• Income proof not needed

When we go for the loans we usually have to show our income proof. So, that the lenders will be satisfied that a person can repay the loan amount but that is not in the case of a gold loan. We don't have to show our income proof. In the case of gold, the borrower is giving his or her gold as security. From this, we conclude that anyone can apply for a gold loan whether earning or not.

• No credit score

In many loans, credit score plays a major role but not in gold loans. In other loans, a credit score is considered to see whether the person can repay the loan or not. In gold loans, the amount is decided by market value.

• Documents needed

There is minimal need for documents.

Following are the documents needed.

• Aadhar card/PAN card/Driving license.

• Address proof.

• KYC.

• Passport size photograph.

• Flexibility in repayment

The method of repayment is chosen by the borrower. Following are some of the method of repayment-:

• EMI Method.

• Upfront interest payment.

• Bullet repayment.

Disadvantages of gold loan

• LTV rate

When a person pledged his or her gold, he or she gets the loan amount. That loan amount is based on the Loan To Value ratio. so, this varies from one lender to another lender. The maximum value can be 80%. For example, if the market value of gold is 2 lakh then you will get 1 lakh as the loan amount.

• Loan default

When you are not able to repay the loan amount then the lenders have the right to seize your gold.

• CIBIL SCORE

As your credit score is not considered but your CIBIL score may get affected if you are not able to pay the loan amount. That's why you should repay your loan amount within the time limit that is given by the bank. If you repay your amount of time it will increase your credit score

Conclusion

From the above here we can conclude everything about Gold Loan. When a person goes for a gold loan he or she should go through the advantages and disadvantages. A gold loan can be a better option for a person seeking a loan. Gold is an investment for a middle-class family and the advantages that come with a gold loan can be a boon for everyone. So, every loan has its pros and cons.

Recovery of gold loan Default

Gold loans are having few things which need to be focused on and checked before availing any kind of gold loan. Credibility- The financial position of a particular person is very important to know at which position he or she is. It is so because if the current situation of the financial credibility 60% or 70% is well informed time in hand.

Documentation - What are the necessary documents which will be needed during the time of availing the loan must be known to the particular person who is availing the loan. For example, if there is any kind of urgency and the documents are not properly plotted. Then there will be a very big challenge while tracing the credit score of a particular person as well as the other necessary information which the loan provider will require will get hampered.

Credit score- Credit score is a score that states the trend and the history of the payment of financial transactions done by a person. To get a good loan that trade score is supposed to be around 700 which is considered to be a good credit score. If the credit score is not good then take a small amount of loan and try to pay the loan. In this way, the credit score will also improve and will get approval for a better type of loan in the future.

Rate of interest- why leveling any kind of gold loan better deal off alone always compare the rates of different loan providers. Some rates might be lower while some rates are higher but having a unique feature of each one of the loan providers but the standard measure will be Gold Loan Per Gram for valuation. So whichever will be best suitable for a particular person availing the loan from that loan provider will be a great option.

Gold is not only a single-way process but it is a two-way process. It does not only involve the availing of the Golden but also in work the repayment of the gold loan as well. But some circumstances arise due to which the recovery of the gold loan provider is a very big challenge. Sometimes the loan applicant defaults because they are unable to pay for the loan installment. Due to which certain circumstances can arise.

Missing the payments - If a person who has availed any kind of gold loan receives any kind of alerts like calls or messages or emails so at the person will be informed in advance there is some kind of loan or the interest of the loan payable in some coming dates.

Extra Interest- The loan provided matches interest on the due amount or can add some extra charges for not paying the installment at the proper time?

Gold as a security - As we all know that loan Aadhar Card loan is a security for that which we avail from the banks. There is a rule for which if three consecutive installments of three months payment are not and then the loan provider has the right to set off gold. From the auction whatever the money they will be getting will be used for the settlement of the loan and its interest. HDFC Gold Loan has such schemes.

Conclusion:

To conclude it can be said that if the payments are not being made at the proper time and come in the list of the defaulter then automatically the name of the profile of the particular person gets noticed or checked by the credit rating Agencies like CIBIL or Highmark. In the event of non-payment or becoming a defaulter CIBIL score will in the future for getting any kind of loan.