Opt for Gold Loan if You Need Instant Loan up to Rs. 50 Lakh!

Updated on: 19 Jan 2024 // 4 min read // Gold Loan
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Gold has always been regarded as a safe haven for financially turbulent times. As a result, investors flock towards gold whenever the market is facing any upheaval as it offers them a safe avenue of investment. In addition to being a go-to investment option, gold also happens to be one of the most liquid forms of assets. You can easily sell-off the yellow metal and generate the required funds instantly for an emergency. However, we Indians have an emotional connection with our Gold Jewellery, and we would rather want to protect it at all costs.

In such a scenario, it indeed is a great alternative to Avail a Gold Loan against your ideal gold (jewellery, coins, biscuits, etc.) and meet the financial exigencies without having to part with it. Various financial institutions now offer Instant Cash Loan against your Gold and allow you to access a ready source of funds as and when required.

Features of Gold Loan

As the name suggests, Gold Loan is a secured loan offering. You use Gold as collateral to avail this Instant Cash Loan from banks as well as Non-Banking Financial Corporations. The money availed as Gold Loan can be used for any financial requirement of yours as there is no need to inform the lending institution regarding the end use of the money.

The key features of Gold Loans are listed below:

  1. The amount for Gold Loan is proportional to the value of asset pledged. You can avail up to Rs. 50 Lakh by most lenders.
  2. Extended repayment tenor of up to 36 months offers financial flexibility.
  3. The interest rates on personal loans are higher than Gold Loan Interest Rates.
  4. Flexible repayment options are available to the borrower.
  5. Minimum processing and foreclosure charges make Gold Loans a better option than Personal Loans.
  6. Freedom to use money as and when required by the borrower.
  7. Quick approvals and instant disbursals within a few working hours.
  8. Safekeeping your gold is the responsibility of the lender.
  9. High loan to value ratio of up to 75%.
  10. Gold Loan is available with low CIBIL Score as well.

How to avail a Gold Loan?

Availing Gold Loan is an extremely simple and straightforward process which includes the below-mentioned steps:

1. Identify the preferable lender:

With multiple financial institutions offering the facility of Gold Loan, it is not a cakewalk to choose one. You must, therefore, conduct detailed research online regarding the key parameters offered by respective lenders such as interest rates, maximum amount available, repayment tenor, processing charges etc. Select the lender whose offering is suitable for you. Online you can compare various Gold Loan offerings.

2. Set-up an appointment with the lender:

Now, set-up an appointment at any of the branch offices of the lender. This will help you get proper attention when you go for the transaction and avoid unnecessary delays due to unavailability of the valuer. Usually, you can simply walk-in to the branch office of the lender during working hours.

3. Visit the branch with your gold and KYC documents:

You need to take your physical gold to the office of the lender along with your KYC documents such as Pan Card, Address Proof and ID Proof. Make sure you carry multiple copies of the documents.

4. Get your gold evaluated by the valuer:

The official valuer of the lender will check the quantity and quality of the gold in front of you. Make sure you follow this process carefully. You will be intimated regarding the value of the gold, and if it is acceptable to you, the valuer will pack the gold in a sealed bag and take your signatures on the same.

5. Sign the application and disbursal form:

You will then need to sign a few forms as required by the lender. Moreover, you also need to specify your preferred mode of receiving the payment. Please note that if the amount is above Rs. 2 Lakh, you will be offered the money through Bank Transfer only.

6. Receive loan as cash or bank transfer:

You will need to submit a cancelled copy of your cheque to the lender to receive the amount in your bank account. If you need the money in cash, the lender will pay you the money in cash, subject to the limit of Rs. 2 Lakh.

Benefits of availing Gold Loan

If you are still unsure about the benefits of availing a Gold Loan, here are some of the advantages you will enjoy with a Gold Loan:

1. Instant disbursals:

You need not wait for several days for the loan amount as Gold Loans are approved and disbursed within a few working hours only.

2. Available with low Credit Score:

You can avail a Gold Loan even if your Credit Score is below the required threshold of 700+. It comes in handy during the times of emergency.

3. Competitive interest rates:

Gold Loan interest rates vary between 12-14% per annum, which is significantly lower than Personal Loans Interest Rates. It helps to reduce the amount of interest you need to pay during repayments.

4. High-value loans:

You can avail high ticket Gold Loans for up to Rs. 50 Lakh in a few minutes and use this amount to meet your liabilities in a timely manner. No need to take multiple Personal Loans.

5. Flexible repayments:

You can opt from multiple repayment options as per your convenience,e. pay the entire amount at the end of the repayment tenor, pay only interest as EMI and principal at the end of the tenor, or pre-pay the entire amount as your financials allow.

With a hassle-free process and multiple benefits on the table, a Gold Loan allows you to enjoy significant financial freedom even during times of emergency.

Also Read: 10 Ways Gold Loan Proves to be the Best Bet for Your Financial Needs

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