Now the significant lenders like public and private sector banks and NBFCs are viewing gold as a way to reach such sections of people and increase their market by providing them with loans against their gold at reasonable interest rates. Since a Gold Loan does not require the applicant to prove their income, it becomes a suitable solution for unstable or no revenue people.
Karur Vysya Bank is a private sector bank that provides its customers with all types of financial services like Fixed Deposit, Recurring Deposit. PPF, secured and unsecured loans, etc. Both the new and existing customers can avail themselves of the Karur Vysya Bank Gold Loan by depositing their gold articles and getting them verified to get the best price and interest rate. The loan tenure for Karur Vysya Bank Gold Loan is a maximum of 36 months, and the loan amount is around 80% of the pledged gold. The processing time is very quick as the loan amount gets disbursed within an hour after the loan approval.
Borrowers have many reasons to opt for Gold Loans at banks like Karur Vysya and other public and private sector banks as well. These are:
The Gold Loan helps build your credit score -:
While credit score isn't a deciding factor while approving a Gold Loan, it can prove to be decisive for your future investments and credits. Gold Loans have lenient eligibility criteria and require very few personal details of the applicant. If the applicant can repay the loan on time without any error, it significantly improves your credit score, and in the future, you would be able to get other types of loans like personal loans, car loans, etc.
Quick disbursal and easily accessible -:
With the innovation of online banking, all types of loans are just a click away. The lending banks and NBFCs will just need you to deposit your gold in person, and the rest of the process can be completed online within minutes. Even the repayment of the loan amount can be made through bank-to-bank transfer and other modes of online payment.
Fluctuating Gold prices -:
In recent years, the gold rates have increased steadily, online banking innovation and when the market is suffering, the gold price tends to rise. In such cases, the value of your gold ornaments/jewelry will increase as well, and you will be able to get a better Gold Loan amount. The gold loan interest rates are lower for higher amounts.
Special schemes for agricultural loans -:
In India, agriculture is treated as a priority sector by the banks. Farmers can get Gold Loans at lower interest rates than usual for the same tenure.
Several repayment options to choose from -:
Gold Loans have flexible repayment methods, and the borrower can choose from up to four different ways of making the payments on time before the loan tenure ends.
Freedom on end-use of the funds -:
Borrowers are not accountable to anyone regarding the usage of the Gold Loan funds. They can be used for any personal need or emergency.
Conclusion:
By choosing the trusted and renowned lenders, you can get the best and most suitable offers for your gold ornaments and avail of other benefits if you are an existing customer at the bank or NBFC. With such few restrictions and rules, a Gold Loan is seen as a savior in times of emergency and other situations where money is needed immediately.
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