Gold is one of those few metals that can help you to come out of your financial troubles. Through a gold loan, individuals can restructure their lives even from scratch and convert it into a fortune. Gold loan is a significant part of the financial market, and thus gold loan is one of the services which will be included in the portfolio of all the major banks and financial institutions.
With the advent of digitisation and the emergence of new technologies, applying for a gold loan is just a matter of 30 to 120 minutes. An individual can apply for a gold loan via both online and offline modes. The online way is promoted more by the banks and generally preferred by the customers in this pandemic situation. However, a person applying for a gold loan even through online mode has to visit the bank branch once to deposit the gold with the bank. Remaining all the formalities can be done online.
Gold loans offer certain advantages: low-interest rate than other loans, easy application, easy repayment, minimum documentation, and disbursement in a few hours.
One of the most significant advantages a gold loan offers is that there is no need for a good CIBIL score to apply for a gold loan. An individual with a bad CIBIL score can also avail of a gold loan. Gold loan, being a secured loan, does not create any pressure on the part of banks. If the customer defaults in repaying the amount, the bank can sell the gold in the open market and recover the money.
When a gold loan application is made, the lender gets the quality of gold checked, whether in-house or from somewhere else. And based on the quality inspection, an amount equivalent to around 80% of the value of gold so pledged is sanctioned. That is why the gold loan is considered a safe and secure way of financing.
Let's talk about some eligibility criteria which are needed to be filled by the customer applying for a gold loan-
Only a resident of India can apply for a gold loan
That resident has to be 18 years or above to avail of a gold loan
A self-occupied house property has to be registered in the name of such individual applying for a gold loan
Gold must be in the possession and ownership of such individual applying for a gold loan
Only the gold ranging from 18 carats to 22 carats can be pledged as per the instructions of the RBI
Along with fulfilling the above eligibility conditions, a person applying for a gold loan also has to submit certain documents such as-
Proof of your identity in the form of Pan card/ Aadhar card/ Voters id/ Driving license
Proof of residence such as Utility bills of home/ Aadhar card/ Voters id
The interest and need of the middle class regarding gold loans have made the financial institutions offering such loans simplify the whole process. Almost all the major banks and financial institutions, including Allahabad bank, which gives Allahabad Bank Gold loan, have taken their services to their respective portals. A customer can quickly go to the portal and apply for a gold loan in seconds.
One more important detail regarding gold loans is that- Generally, the rate of per gram gold differs from carats to carats. ”Gold loan per gram” is the first question that comes into the mind of a person willing to avail of a gold loan. Gold loan per gram ranges from ₹ 2,573 to ₹ 3,145.
For 18 carats of gold, the rate offered will be around ₹2,611, while for 20 carats of gold, it will be around ₹ 2,901, and for 22-carat gold, the rates may go to ₹3,191.
However, these rates may differ from time to time and according to different market conditions.
One of the easiest ways of applying for a gold loan nowadays is through online mode. It saves the consuming time and energy of the borrowers and saves a considerable cost to banks, which enables the bank to offer the gold loan at a concessional rate to their customers.
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