A lot of us have a habit of investing money whenever we have savings left. Some of us do heavily rely on buying gold as an investment. Gold investments if done the right way can be very beneficial. But when one faces financial problems especially in times like right now when people are facing job loss and salary cuts it can be a problem to have all your savings locked away in the form of gold. A lot of people are also losing money in share markets as some companies have merged making their equities to zero and fall their share values to zero as well. The share market has become very unpredictable as well.
A lot of people who buy gold have an emotional attachment towards it as it is generally bought on auspicious occasions or for a loved one. But without selling the gold we have options to liquidate the money invested in gold and the best option is availing gold loan from a reputed bank.Gold loans are a great way to liquidate your assets as after making timely monthly payments your gold is returned to you in the same form as you submitted it to the bank. A lot of people anyway keep loans in their bank lockers and pay the rent for that locker so it’s a good way to avail of loans. Many people have spare gold and a lot of us who have it avoid wearing it on a day to day basis due to the risks involved.
Indians generally prefer to invest their money in gold due to their traditions. But we often buy gold and never use it as an investment so its purpose as an investment never gets fulfilled. Also selling it is not a great option as it is a very valuable object. Gold loan is a secured form of loan and hence it has lower interest rates and longer payback periods. Some banks also don’t ask for proof of income when you keep gold as collateral. Gold loans are one of the only assets where you can avail loan of up to 90% of its valuation which quite a lot as compared to car loans or home loans. This norm is brought into practice by RBI and hence it is a trustworthy way for customers to avail of loans.
Gold loan is provided to all ages 21 to 75 so it’s available to almost all individuals. They also provide gold loans to self-employed individuals, farmers, public and private sector employees, etc.If proof of income is not required then there is no norm for completion of 2-3 years of service. Hence it’s good news for young individuals. Businessmen can avail of a gold loan for later a lot lower than business loans. Gold loan interest rates are as low as 7% and business loan interest rates go as high as 17%. It is always a better deal than a business loan and with a business, in practice, you can always make more money in the longer run. There’s also no need for GST registration for the business and provide profit proofs as well.
Make sure your gold is at least 18-carat as less than that is not acceptable for providing loans. Also, make sure you preferably don’t have any diamonds or pearls encrusted on them. As the name suggests this is a gold loan and not a diamond loan the value of diamonds is not counted and you risk your diamonds and pearls for no reason. If proof of income is required then try to apply for Indian Overseas Bank gold loan and from any another bank where you have your salary account. Banks do have schemes for people who have their salary accounts with them as banks know that you have monthly fixed income and you will be able to pay back the loan borrowed. Make sure to take a loan only when you actually need it as it is a risk to your assets nonetheless.
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