Everyone is aware of the fact that gold loans are the most convenient and workable form of loan a borrower can apply for. Gold loan, also known as a loan against gold, is a secured form of loan where a borrower can simply request the lender to grant the loan against the gold article provided by the borrower. With a very simple and hassle-free process, gold loans are in limelight these days.
The gold loan has benefits that make it very attractive to the applicants but it is of utmost importance that the applicants are aware of the terms and conditions and they should be well versed with the eligibility criteria.
Often people opt for taking a gold loan because they need a loan on an urgent basis and for a short span of time. Applicants should evaluate their situation and make sure that their decision of getting a gold loan is a very well thought through. They need to be very certain about their repayment capacity because in case of default the institution will have a legal right to auction off the gold article.
Anyone can get a gold loan, even an applicant with a low credit score. The applicant can be self-employed (businessman or farmer) or a salaried employee. Gold loan saves you from cumbersome paperwork and the only documents required are the KYC document. For instance, the basic requirement to get a gold loan under SBI gold loan policy is that the applicant should be 18 years and above with a stable source of income and gold article readily available.
A lot of banks or NBFCs (Non-Banking Financial Companies) have the option of applying online. Once the applicant is certain about getting a gold loan, all an applicant needs to do is compare the available options to find out the gold loan interest rate and gold loan per gram rate appropriate for him/her depending on their needs. After that they have to comply with the simple terms, provide the institution with the documents and the applicant will be granted the loan.
Comments