India as a country has a certain cultural value attached to gold. This makes India the world's second largest consumer of Gold. In an interview with the Indian Financial daily, The Financial Express, the managing director of World Gold Council had revealed that Indian households have accumulated around 25,000 tonnes of gold. Thus, many consumers look at gold loans as a potential option to meet their financial requirements.
Gold loan is a secured and profitable option for consumers possessing gold reserves. These loans are provided by the banks and the Non-banking Financial Companies (NBFCs) for letting the consumers meet their immediate financial requirements. But, very often people aren’t aware about the ways to approach a bank for lending money in exchange for their gold article. Many times people base their decision on the personal facts or opinions. This ignorance often leads them to ending up in a debt trap or legal trouble too.Thus, it is very important to do prior research on how to apply for a gold loan.
Gold loan and it's easy to apply process makes it a potential option to consider during cash crunch.The process is extremely simple. The borrower takes the available gold to the bank. The banks or NBFCs duly check the gold for quality and quantity. Then, the document verification takes place. You don't need to possess a host of documents to avail a gold loan.
The bank just asks about an ID proof, and your KYC documents. Then documents are verified .Once done with the document verification, the bank sanctions the loan amount according to their gold loan per gram scheme.
For instance, ICICI bank offers Rs. 2905 to Rs.3351 as gold loan per gram. ICICI gold loan policy lets the consumer apply for the gold loan at the comfort of sitting home and applying online. The interest rates for ICICI gold loan starts from 9.90% with minimal processing fees. The gold loan interest rates differ from bank to bank and the Non Banking Financial Companies.
Once all the application process and verification is done, the banks process the loan amount in around 40 minutes. Gold loan, thus comes as a saving grace for the Indian households where there is accumulation of gold but lack of money most of the time. You can submit the gold articles and avail gold loan amount against that physical gold.
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