There are always certain myths and facts related to everything in the world. The same applies for gold loans too. Gold loan as we all know, is simply nothing but a loan against the gold you offer as a borrower to some lending institution you trust in. Today, we are here to disclose certain myths regarding the gold loans, and we urge you not to believe in any of these.
A certain myth about gold loan from the name itself was that loan against the gold was offered and is possible to offer only by the jewellers who own a jewellery shop of gold. But banks came into picture and have stood strong in lending loans for example, ICICI gold loan is something worth taking due to its tremendous offers and deals, and not only banks but there are also Non banking financial companies which offer gold loans.
It was always running in the heads of the borrowers about their gold getting misplaced or swapped once offered to take a loan. But this is so very wrong since, each and every gold article that you offer, it is safely kept in a Vault Safe.
The word ‘gold’ is always looked upon highly, and accordingly it is also thought that gold loan is always associated with high interest rates, which common people can not afford for. But several banks offer gold loan interest rate starting just from 7.4% onwards.
It was always thought that, to offer gold against your loan, only the new and very shiny was taken into account and no aged or traditional jewellery would be accepted. But let me tell you that, no matter how aged or old the jewellery is, everything is acceptable and the loan offered to you is calculated on the value and purity, of whatever you are offering,which eventually has to be around 18karats at least.
It is also thought that only rich and high end people can be eligible for loans,but this is so not the point because, once you are an individual holding certain gold articles, you are more than welcome to offer your gold and take loans, keeping in some eligibility factors like age etc in mind.
People also start to assume that they need very high end documentation and cannot be eligible for a gold loan, but gold loans in fact require very less documentation just like basic Government ID proof.
It was also thought that only salaried professionals can apply for a gold loan, but NO. From farmers, to traders and even housewives are equally considered to apply for gold loans.
It is assumed that income proof is must to hold to get a gold loan, but a lender doesn’t require any such documentation which mentions your income.
People in general feel it is a time consuming process to get themselves sanctioned a gold loan, but the processing time is quicker and faster in comparison to the personal loans.
They also think gold loans are also possible by making a physical visit to the banks, but with the advancement in technology and internet gold loans can also be applied online.
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