There is a need to visit the branch just once and that too to deposit the gold with the bank.
The procedure of the Gold loan has also been made less complex and hassle-free to provide maximum convenience to the customer.
This is a highly competitive world where there are so many lenders offering a Gold loan. This creates confusion in the minds of customers as to which Gold loan is the best. Each bank and financial institution tries to provide the best service to the customers. The customer before applying for a gold loan has to have proper knowledge of Gold loan, banks offering such loan, eligibility criteria, documentation requires, etc.
To apply for a Gold loan an individual has to be-
A resident of India
Older than 18 years
Must have gold in ownership and possession at the time of applying for the gold loan
Must have a self residence registered in their name
Banks have tried to make the documentation simpler and less complex. However, there are some basic documentation that is needed at the time of application for a Gold loan-
Identity proof such as Voter ID/ Passport/ Aadhaar Card/ Pan Card
Residence proof such as Utility Bills on the name of the applicant/ Rental Agreement of the applicant/ Aadhaar card/ Pan card/ Voter ID.
The gold loan process is as simple as lending gold by the borrower to the lender and taking money. The borrower takes his gold to the lender, the lender gets its quality inspected and generally, an amount equivalent to 80% of the Gold is assigned as a loan to the borrower. The loan amount gets disbursed into the bank account of the borrower within a period of maximum to a maximum of 15 days.
Gold loan is such a significant product of a company that it can be found in the portfolio of almost every major bank. Various banks offering Gold loans along with their respective major trait is given below-
HDFC Bank Gold loan (9.99%) A reputed name in the industry and known for providing the best after-sales service in the market. HDFC Gold Loan is the most easy loan to get with little documentation and hassle.
Axis Bank Gold loan (10.90%) Known for fast processing of loans to make disbursement faster in the account of the customers.
SBI Gold loan ( 7.50%) The biggest bank in the nation. Provides one of the best services and has a diversified portfolio of service provisions.
Dena Bank Gold loan ( 7.1%) Accepts both non-hallmarked and hallmarked jewelry. Dena Bank gold loan is offered at one of the lowest Interest rates in the market.
Several other banks provide Gold loans. The common trait that each bank will have nowadays is the willingness to be the best by serving maximum customers.
However Gold loans are always offered by the banks after carefully inspecting the quality of Gold. We can say that the quality of Gold is the most significant thing which is checked before deciding how much money one can get from a Gold loan.
A gold loan is the most secured form of a loan. So banks don’t even bother to check the CIBIL score of a person applying for the Gold loan. The benefit is with the people having low CIBIL score, even they can avail for a Gold loan, no questions asked.
Conclusion: There is heavy competition in the market due to which clutter is created. This generally confuses customers as to where to get the best Gold loan from. Various factors should simultaneously be kept in mind while applying for a Gold loan- Interest rate, service, reputation, etc. The gold loan can be availed very easily and has been made quite simple but a customer should always carefully analyze from where one should take a Gold loan.
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