Investment in gold
Gold is often the first choice of investors. The market value of gold keeps skyrocketing day by day. Gold is found only in the 3 mines of India but acquired mostly by the Indians all over the world. The idols of god and goddess are made up of gold in some Indian temples. During weddings, the bride is adorned with 16 different gold ornaments. It said that gold beautifies the person wearing it and brings peace, abundance, and strength to one's life. Every year, tonnes of gold are bought at various festivals or occasions. Gold gifting is highly regarded and found auspicious in India.
Gold loan schemes
Two schemes are available at DCB bank for gold loan.
Agricultural jewel loan gold scheme
This loan is given to agricultural laborers or farmers. The proof of agricultural land has to be shown while availing of this loan. This loan can only be used for agricultural purposes.
Non-agricultural jewel loan gold scheme
This loan is given for non-agricultural purposes. This loan can be available for tourism, higher education, business expansions, construction, or other purposes. It can be avail by businessmen, students, housewives, etc. There is no restriction on the use of this loan.
Gold loan process
The loan process is quite convenient. It involves an application, document verification, and purity test of gold. This loan can get sanctioned in less period.
Application
The application form contains some personal information that needs to be filled up by the borrower and can be filled online or in the bank.
Eligibility
You have to check the eligibility criteria before applying for a loan which includes the appropriate age, gold quality, gold quantity, loan amount to be sanctioned, etc.
Bank visit
You have to visit the bank for document verification and a gold purity test for checking your eligibility before sanctioning the loan.
Documentation
2 documents along with 2 passport-sized photographs have to be submitted. The documents are identity and address proof.
For identity and address proof any one of the documents mentioned can be submitted.
Identity proof-
voter ID, Aadhar card, driving license, or PAN card.
Address proof- passport, ration card, Aadhar card, utility bills, or renter's agreement for people living on rent.
Purity test
The gold has to be brought to the bank for a purity test. Gold authorities will evaluate the gold for its impurities and composition. The gold should be 18 carats or above while acquiring the gold loan.
Loan sanctioning
A sanction letter is issued when the loan is sanctioned. The sanction letter contains the bank details, borrower details, loan amount sanctioned, gold loan per gram rate, processing fee, foreclosure charges, interest rates, tenure, repayment, terms, and conditions, etc. The interest rates of DCB bank are from 7.0% Onward. It has a low processing fee and negligible foreclosure charges.
Tenure
The tenure period of a gold loan is between 3 to 60 months.
Repayment
For personal loans or property loans, a credit score is a mandatory requirement whereas gold is not mandatory. However, it is not required during loan sanctioning but it can increase your credit score. In gold loans as the gold is kept as collateral; income proof and credit score are not necessary. The repayment of a loan during the given tenure can increase your credit score. If you missed your EMI, you can validate before your loan expires which gives you more time to repay the amount.
The DCB Bank gold loan has three repayment options.
Bullet repayment- One has to pay an amount indicated every month whereas the principal is due at the end of the tenure period.
Overdraft repayment scheme- one has to only pay the interest on the amount disbursed from the total loan amount.
EMI- one has to pay a fixed amount indicated monthly.
To conclude, DCB Bank gold loan it's the most suitable option for a gold loan because of its low-interest rates and high processing time. In a single bank visit, this loan can get processed which makes it most convenient.
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