A secured loan like loan against gold is given against collateral; during this case, your gold ornaments. because the loaner has collateral or security against this loan, they're identified to be cheaper than an unsecured loan.
Gold is historically one in all the foremost well-liked investment choices in India. However, except for being a beautiful investment choice, your gold ornaments may also assist you to get a loan occasionally of would like. scrutinize this post to grasp what this loan is and the way it works.
Taking a Gold Loan
Taking a loan against gold ornaments is as straightforward as visiting the closest branch of the lender together with your gold ornaments. Your ornaments are going to be valued in your presence for hard the utmost quantity you'll borrow. If you would like to travel ahead with the loan when valuation, you may be needed to fill an application type and submit the specified documents. The loaner can instantly approve the loan and pay out the loan quantity. To calculate the amount of EMI, you can use the EMI calculator of Indian Overseas Bank Gold Loan for this.
Interest Rate and Tenure of Gold Loan
As mentioned higher than, Gold Loans area unit secured loans and area unit so, typically cheaper than unsecured loans. The Gold Loan rate will vary between 60-100% however, this is higher counting on the loaner you decide on. These loans area unit typically offered for an amount of six months to twelve months. Repay the complete loan on time, and you'll get your gold ornaments back within the same state as you initially deposited them at the time of taking the loan.
Interest Rate and Tenure of Gold Loan
As mentioned higher than, Gold Loans are secured loans and are so, typically cheaper than unsecured loans. The Gold Loan rate will vary between 60-100%, however, is higher counting on the loaner you decide on. These loans are typically offered for an amount of six months to twelve months. Repay the complete loan on time, and you'll get your gold ornaments back within the same state as you initially deposited them at the time of taking the loan.
Documents needed for taking a Gold Loan
You can take a Gold Loan per gram rate of the ornaments you own. As compared to most alternative varieties of loans, the documentation necessities of such loans are minimal. Most banks solely need you to submit ID proof, address proof and 2 images. As you're keeping your gold as security with the loaner, factors like your credit score, income, age, etc. aren't taken into thought by the loaner.
Charges of Gold Loan
Apart from the rate, there are some necessary charges that you simply ought to comprehend before taking a Gold Loan. a number of the foremost common charges are a processing fee, documentation charges and due handling charges.
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