Gold trading
Since the discovery of gold, it has been in demand. Thus the trading started as a means of occupation. The gold ex-changers were called gold dealers, gold jewelers, or Goldsmith. They used to pledge gold from people in return for cash. Gold is acquired by a high number of people throughout the world and still people invest more in gold. Gold investments are very secure due to their monetary value. Gold doesn't deplete over time which is the reason for its acquisition.
Gold loan process
A gold loan is the only loan that can be acquired by anybody irrespective of their occupation or income. Gold can be availed for travel purposes, higher education, construction purpose, business expansions, or agricultural purposes. DCB Bank gold loan is the best option in finance while availing the gold loan.
Application
The loan can be availed in two ways- Gold loan apply online and Gold loan applies offline.You have to just fill up the application form from the bank or official web page where personal details are required.
Eligibility
Before applying for a gold loan, one can check their eligibility from eligibility criteria. The eligibility criteria include the age of the borrower which should be 18-70 years of age. Nationality should be Indian. The employment status should be self-employed or salaried for availing of the gold loan. Minimum 18 carats of gold are required while applying for gold. A 500 CIBIL score is required. You can check all the other criteria and terms of conditions on the bank's website.
Documentation
You have to visit the bank along with KYC documents and 2 passport size photographs. The documents required for verification are identity proof and address proof.
Identity proof
Aadhar card, Voter ID, passport, or PAN card.
Address proof
Aadhar card, driving license, ration card, utility bills, and rent agreement for people living on rent.
Only one document from the above mentioned has to be submitted for address and identity proof respectively. The proof of agricultural land has to be submitted for availing gold loan for agricultural purposes.
Purity test
A purity test of the gold is done on the pledged gold. Gold is evaluated for its composition and impurities present on it. The loan is sanctioned accordingly.
Loan sanctioning.
After the document verification and purity test, the loan is sanctioned. A sanction letter is issued containing the information of the bank, borrower, loan amount sanctioned, interest charges, prepayment options, processing fee, tenure, repayment options, terms, and conditions are mentioned.After depositing the pledged gold in the bank, the loan amount is credited to your account.
Tenure
The tenure period of repayment of the loan is up to 60 months. You can choose a specific repayment plan where you can pay your amount at your convenience.
Repayment
DCB Bank cares for its customers' needs and looks after them carefully. For paying their debt securely and conveniently, three repayment options are given. Bullet repayment option, overdraft scheme repayment, and EMI options. You can calculate your EMI on the bank's official website.
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 a fixed amount indicated monthly.
In conclusion, a gold loan is quite convenient and hassle-free. It has very low-interest charges of 7.0% per annum. Besides, a 1 crore loan amount can be sanctioned with a 75% LTV ratio. The benefits of gold loans are more compared to other loans. DCB Bank is the best choice for a gold loan with a high tenure period.
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