Gold Loan Scheme & Steps to Avail it

 

Features and benefits of gold loan 

The best gold loan schemes accompany the following features: 

• High sum

Financial institutions offer a high loan value against gold assets. Moreover, the loan amount depends on the gold quality and LTV. Although now up to 90% LTV is available for gold loans, as per RBI guidelines, it varies with lenders. 

This fund does not accompany any end-usage restrictions, and therefore borrowers can utilize it to meet any financial obligation. 

• Convenient repayment 

Today Bajaj Finserv gold loan comes with multiple repayment options. You can choose a regular EMI system to clear the debt. Otherwise, you can also decide to pay the interest first and the principal later before the tenor ends. Alternatively, you can pay the interest periodically and principal at the end of the tenor. It provides the liberty to select a repayment option based on your financial condition. 

Typically, the tenor of a gold loan ranges from 6 to 12 months. 

• Reasonable interest rates

Gold loan is an asset-backed credit, and therefore the interest rates are competitive. However, for better interest rates, borrowers can compare different lenders. For instance, NBFCs like Bajaj Finserv extend a high-value gold loan at affordable interest rates. Thus, it results in reasonable borrowing costs and lower EMIs. 

• Simple eligibility and documentation 

Gold loans gained popularity due to their simple eligibility criteria. You do not need a high CIBIL score to qualify for this credit. You need to fulfil only a few eligibility criteria as follows:

• Age should be between 21 to 70 years.
• Self-employed/salaried/professionals/traders/farmers and likes can apply for this advance. 

However, lenders may ask for income proof if the need arises. Besides eligibility, individuals also need to submit a few documents while applying for this loan, including KYC and the likes. 

• Safe gold appraisal process 

To ensure optimum safety, selected lenders also offer a gold appraisal process at your home. Their representative visits your home with a standard carat meter to measure the gold’s value accurately. 

• Improved security 

The security of the pledged asset is a vital factor in a gold loan scheme. Thus, before pledging the gold, borrowers need to ensure their gold’s safety. Selected financiers provide the industry-best gold security. After collecting the gold from borrowers, they deposit it in a vault equipped with a motion detector and round the clock surveillance. 

• Quick loan processing 

Although a gold loan is secured credit, it takes only a few hours to complete the loan processing. The short documentation and simple eligibility check reduce the processing time to a great extent. Additionally, you can apply online in case of any financial emergency. 

• Part-release facility 

Individuals can also partly release the pledged gold by paying off an equivalent amount. It ensures that they can release their gold items whenever they want sans hassle. 

• Zero hidden charges

Besides part release, borrowers can also avail part-prepayment and foreclosure facilities without paying any additional charges. However, some lenders may impose nominal fees on such facilities.