The whole world is getting fade because of this Covid-19. But, there is one thing, which is getting shinier day by day. The thing is gold or gold loan. To set back the businesses, small to big business owners are applying for gold loans or selling their gold. But to apply for a gold loan, people should know the facilities every bank offers related to gold loans.
Facilities Providing by different banks.
Minimum interest rate: As the demand for gold loans is increasing day by day. Different banks are issuing new policies to lure their customers. One of the measures to lure the customer is to charge a minimum interest rate. Like, SBI introduced an interest rate of 7% per annum against gold loans. Muthoot Finance gold loan is an Organisation that basically works to provide gold loans. MFG introduced an interest rate of around 12% per annum. The gold loan interest rate depends on many types of factors such as LTV, Loan tenure, etc. So you need to study more factors before applying for a gold loan. Apply at the bank which is offering you a minimum interest rate. That is how you can save a lot on a gold loan.
Minimum documentation: Minimum documentation is asked by the banks while applying for gold loans. The document having KYC is enough for the banks to sanction the gold loan. Because the borrower pledges their gold as collateral. Though documentation lists may vary from one bank to another some of the documents are there which are common in every bank’s list. Like id proof, address proof, etc. Go through the list of documents before applying for the loan.
Minimum time to get sanctioned: Gold loans take minimum time to get sanctioned. Gold loans can get sanctioned in 5 minutes. Gold loans most probably get approve within minutes of applying and can be disbursed within hours. To have your loan approved within minutes you need to submit your documents according to the given list and need to fulfill all the eligibility criteria. Gold loans usually get approved faster in comparison to any other type of secured or unsecured loan available in the market.
Processing Fees: While applying for gold loans a person has to pay minimum processing fees. Like in Muthoot Finance a person does not have to pay any processing fees. And in HDFC Bank a person has to pay INR 250 for the loan amount of 1.5 lakh. Usually, in many banks, you do not need to pay any processing fees. Which is the biggest advantage of a gold loan as almost in every type of secured and unsecured loan you need to pay the processing fees.
Due to the increasing demand for gold loans. Bank made the process to apply for gold loans for their customers. A person can get a minimum old loan of the amount of INR 1,000 to INR 1 crore. It varies from bank to bank. Like in the Mannapuram Gold loan a person gets a loan of amount from INR 1,000 to INR 1 crore. And there is one more advantage of gold loans is that if a person wants to close their installment before time. Then the person is eligible to do that in the case of gold loans.
This facility cannot be accessed by a person in case of any other type of loan. In any other type of loan if a person wants to close the installments before the decided time then a person has to pay a penalty amount as well. The penalty amount in case of other types of loans may vary from one bank to another. Gold loans are becoming more preferable to gold loans. Some are taking gold loans to set back their business. Some are taking gold loans to balance the economic conditions of their house. Reasons can be one or another but gold loans are becoming popular day by day.
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