Nowadays, non-banking financial companies, public sector Banks, and co-operative banks are providing the facility of gold loans to their customers. Everyone in this world has a dream, like buying a house, a car or moving to a new house and to fulfill such dreams, Gold Loan could be considered as the best option.
It can be availed in case of emergency, festival purchases and for many other reasons. This loan is an alternative over Personal Loan. There are lots of advantages of taking it. Some important things, which should keep in mind before taking this loan, are:
Advantages of Gold Loan:-
• A gold loan is available for short term; you can take it for a period of 0 to 1 year. The time tenure may vary according to the policies of different banks and financial Institutions.
• There is no requirement to provide any kind of security or mortgage in gold loan, you just need to carry your gold ornaments and get instant cash.
• It does not matter whether you are a businessman or a housewife or a salaried person, anyone can take it by mortgaging his/ her gold jewelry in the bank.
• Having an account in a bank to get this facility is not mandatory.
• The Gold loan do not require many documents, it just requires some papers, such as ID proof, address proof and Pan card.
• The processing period of gold loan is very short. Banks take few hours and Non Banking Financial Companies take few minutes, to complete this process.
Important Things to Know Before Getting a Gold Loan:-
• You can get only 80 to 90 percent amount of what you have mortgaged. So, if the value of your Ornaments is Rs. 50000, you can get a gold loan up to Rs. 35000 to 40000 only.
• Gold loans are usually given for a period of 1 to 2 years. So, you need to make sure that you will be able to repay the amount within in the prescribed period.
• Gold will be kept in the custody of a bank until the loan is paid.
• If you are dealing with Private sector financial Institutions, you must be very careful in checking whether these institutions are genuine or under any allegations or investigations. Check the assets and track the performance of these companies.
• Generally, banks charge interest rate of around 12 to 15 percent and NBFCs charge 12 to 22 percent, on gold loan. So, get to know about the interest rates in advance.
• In case, you are not able to pay the amount as mentioned in the gold loan agreement, the finance company holds the right to sell your gold.
Gold loans are becoming very popular and many banks and Financial Institutions are offering very low interest rates, currently. This loan is a better choice if compared to personal loans. A lot of financial institutes and banks are offering gold loan, you can check the list of Banks and Non-banking financial companies listed on grotal.com and take advantage of it to make your dreams come true.