Gold loans are a secured form of loan that is known for being readily available, easily accessible and one of the most convenient forms of credit. It is granted by financial organisations (banks and non-banking financial companies) to provide prompt help to the borrowing individuals and entities financially in the times of need. The objective behind granting this loan facility to borrowers and entities in a short period is to fund their shortfalls or requirements during an urgent situation.
Any of the financial decisions should not be taken in a hurry, especially when it has a chance of affecting the current and future stability of the individual or entity. Before applying for a gold loan, it is very important for the borrowing individual or entity to scan through certain things so that they are sure about the action they want to take.
There are certain things to be kept in mind by the borrowers, and some of them are as follows:-
Why a gold loan and not any other option?
If a borrower is inclined towards getting this credit facility, then they must go through the roots of their decision. They should analyse their capacity and the options available and then decide if they are ready to ledge their precious asset or not.
Why is this facility needed?
Reasons for borrowing the funds should be very clear. Pledging a highly valuable asset and spending funds obtained on something unnecessary will land the borrower in hot waters if the situation is not managed well. The borrower should be very clear about the reasons for their choice of this loan.
What are the requirements of the lending institutions?
Though this credit facility is simple and does not include any complex prerequisite is still vital for the borrowing individual or entity to be well versed with what are the details of the facility and the criteria of the lending organisation. The basic requirement in a gold loan is that the borrower must be a minimum of 21 years of age with a steady source of income. The KYC documents are along with a duly signed application form.
The borrower has to present the lender all these things with the gold object, and that's it. As simple as the criteria may be but the lenders are not placid with the criteria. Thus, the borrowers have to adhere to the regulations in any possible way if they want funds. Then the borrower will have to assess the details related to credit such as the gold loan per gram rate, interest rate, repayment method and tenure.
What mode will the borrower use to approach the lender?
The financial institutions have their presence offline as well as online. The borrowers need to contemplate and decide which mode will be more suitable for the id an individual or entity is not much of a tech-savvy borrower then they can visit the lender as and when required without any hesitation, as long as they satisfy the criteria. Such as the Pallavan Grama Bank gold loan policy is available on various platforms for the convenience of the borrowers.
These are some of the aspects to be pondered on for a while before being availed. The borrower's decision will be final, but it is in the goodwill and benefit of the borrower to understand all the intricate details beforehand.
Comments