A gold loan is a loan where a borrower pledges their gold with the lender. Banks and other financial institutions are generally the lenders who have such a huge capacity to lend millions of people at the same time. They are also reliable as they are directly governed by RBI. Lenders after accepting the gold, whether in-house or through any external agency make sure that the quality of the gold is good. A loan amount generally equivalent to 80% of the amount of gold is sanctioned and within a few hours dispatched into the bank account of the borrower.
Following are the eligibility criterion needed to be fulfilled by any person applying for a gold loan-
The person must be of 18 years or above the age.
The person must have a self-occupied house property registered in his/her name before applying for a gold loan. Having a self-occupied house property is very necessary to apply for a gold loan.
The person must be an Indian resident .
Only the gold ranging from 18 carats to 22 carats can be pledged.
Along with fulfilling the above eligibility criteria following documents are also needed to be submitted for availing a gold loan-
Proof of residence such as utility bills of home/ Aadhar card/ voters ID.
Proof of Identities such as Aadhar Card/ Voters ID/ PAN card or driving license.
Various benefits of choosing a gold loan over any other form of loan are-
Low-interest rate as compared to other loans: The gold loan carried much lower interest rates as compared to other loans such as personal loans, home loans, etc.
Gold loan calculator: Thanks to digitization and technology, banks have developed their own portals and websites to serve the customer better. One great feature developed by the banks are the Gold loan calculator. With the help of the gold loan calculator, the customer can get an overview of the loan on their fingertips.
Fast disbursement: Disbursement can occur as fast as within a few hours. The money gets deposited into the bank account of the customer within a few hours.
Safe and secured: A gold loan is a secured loan. Banks worry less about their repayment. As if the customer makes any default in repayment of loans, banks can sell the gold pledged by the customer with the bank to the open market and recover their amount.
No need for a good CIBIL score: One of the biggest advantages of the gold loan is that there is no need for a customer to have a CIBIL score. Even a customer having a low CIBIL score can apply for a gold loan. As a gold loan is a secured loan, banks are not concerned much about an individuals CIBIL score.
Anyone can apply: The gold loan can be applied by anyone be it businessmen, students, homemakers, or job makers. Recently the banking sector has gone under a paradigm shift where even small and localized banks have also gone digital. This not only saves a huge cost for banks but also saves a massive amount of time and energy for both banks and customers. The customer can avail any banking service including gold loan service online. Only once a customer has to visit the bank branch to deposit the gold with the bank, remaining all the steps can be done online itself.
Many online gold loan calculators like the State bank of Bikaner and Jaipur gold loan calculator. With the help of these calculators, the individual who wants to apply for a gold loan but are confused about various aspects such as how much amount they will get, how many taxes, charges, installments they have to pay, and other matters can be easily cleared with the help of a gold loan calculator.
Conclusion: Gold loan is surely an advantageous deal in recent times where the price of gold has surged to an all-time high. This is the best time to avail for a gold loan as it will surely come with many added advantages that will ultimately help both the customers and the economy as a whole.
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