Hello friends in this blog, we will know How To Take Gold Loan From Bank, understand the interest rate & required documents and the whole process, along with this we will learn about many other things like what is a gold loan, how to get a loan on gold, what are the benefits of loan What will happen if you do not repay, today we will discuss in detail about the loan of gold in this blog.
For your information, let us tell you that currently, all banks do not give gold loans, so if you want to take a loan, then for this you have to choose a special institution like Muthoot Finance, it is a very popular institution for giving gold loan in India, whose advertisement you have given. Must have been seen it on TV.
If you need a loan in case of emergency then you should take a gold loan instead of a personal loan because its interest is also much less than a personal loan, however, for this, you should also have gold because with this gold the market of your loan The value is done and on the basis of this loan is provided to you.
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What Is Gold Loan?
Gold Loan is a type of secured loan, where you pledge gold (gold) as a security to repay the loan amount to the bank or the g-loan lender till the G-loan is repaid. Gold is kept in a secure locker by the institutions.
Gold loan is short-term and emergency, which is given for a short time, it is a sudden emergency fund that is given at a working interest rate. It may be needed by the common man at any time, for example, marriage, repair of the house, travel, medical emergency, higher education, etc.
Gold has a high valuation, due to which it can be converted into cash in a short time, to meet your needs in case of emergency, gold loan is a very good option, based on the purity and value of gold. is issued.
According to financial experts, a loan on gold is a better option than taking a personal loan in case of an emergency. The personal loan interest rate is high whereas the gold loan interest rate is less than that. Apart from being a low-interest loan, it is also a flexible loan, you can get it very easily with easy processing.
You do not even need to provide more documents or proof to take a loan on gold, you know that the valuation of gold is high, so you will get a loan very easily up to 75% of its market value.
How To Take Gold Loan From Bank?
You do not have to do anything to take a gold loan, you just have to go directly to the bank, you have to take the gold along with the necessary documents, then the bank, NBFC, or the G-loan institution has your documents as well as the amount of gold deposited by you. Then the goldsmith or officer contracted by the bank will work out the market value of the gold to be deposited by you on the same day.
After that the form will be filled by you to take the G-loan, in this process it is very important for you to have your ID proof, finally, after all the formalities are completed, your gold loan will be approved and the money will be transferred to your account.
How Is The Market Value Of Your Gold Calculated?
Whenever you go to a bank or NBFC to take a gold loan, the purity of your gold is checked there, the market value of the gold is calculated on the basis of the purity and weight of the gold. After that, the loan amount is decided on the basis of the market value of your jewelry from the day you have applied for a gold loan.
Also Read: Muthoot Finance Gold Loan
If you pledge gold ornaments, then only the part of gold will be assessed in this, the rest of the gems and stones will not be included in this assessment If you want to take a gold loan by pledging 24-carat gold coins, then your information Let me tell you that these coins should be issued by the bank. If you have bought these coins from a goldsmith then they will not be recognized.
How Much Interest Is Charged On Gold Loan?
If you are thinking of taking a gold loan, then for your information, let me tell you that there is a lot of difference between the interest rates of the bank and the interest rates of the finance companies, you can see this difference from 10 to 15%. For example, ICICI Bank charges an interest of 10 to 16.50% per annum on gold loans and also deducts a 1% processing fee.
SBI Bank charges 07.50% interest on the loans, along with it also deducting 0.5% of the loan amount as a processing fee. Information should be obtained from.
Also Read: How To Get Bike Loan Easily In 2022
What Are The Benefits Of A Gold Loan?
There are many benefits of gold loans, but today I will tell you some of the main advantages of gold loans, they are as follows.
- The interest rate of a gold loan is less than that of a personal loan.
- You have to mortgage your gold for money, so your loan also gets approved sooner.
- You do not need any certificate or guarantee to take a loan.
- The process of taking a loan on gold is also completed in a very short time.
- You must have a good credit score to avail of a home loan or other loan, but you do not need any credit history with a gold loan.
- You may also incur a pre-penalty if you pay the payment fees before the stipulated time frame for a home loan or any other personal loan, but this is not the case with a gold loan.
- You can also take a loan for a very short time and if it is not needed, you can also get it closed with immediate effect.
- Your gold is kept completely safe in the bank, NBFC, or any other institution, you do not need to worry.
What Documents Are Required For Gold Loan?
If you want to take a gold loan, then you need a PAN card from your Aadhar card as the main document and you will have to give your telephone bill or electricity bill for address proof, along with you must also keep your photo. If the bank or lending institution says, then you will also have to provide your income proof. To check your signature, you need your passport or driving license.
What Happens If Gold Loan Is Not Repaid?
If you are not able to repay the gold loan by the stipulated time frame, then a follow-up reminder is sent to you by the bank or the gold lending institution and the late fee is also deducted as a penalty by most of the banks on the interest rate. In addition, a 2% late payment fee is charged.
Even after sending the reminder, if you do not repay the gold loan, then the bank or the gold giving institution has the right to seize the gold pledged by you, the bank or financial institution pledged you You can also recover your money by selling the lost gold. Keep in mind that your civil score and credit history can also be negatively affected if the bank is forced to do all this.
What To Keep In Mind While Taking A Gold Loan?
- To take a loan, the first condition is that you should not have already been declared a defaulter by the RBI.
- If you fail to make more than 3 EMIs of the loan, then your penalty may also increase.
- Just like any other loan, discipline is also required regarding gold loan repayment, if you are not able to repay the loan by the prescribed time limit, then a penalty of up to 2-3% can also be imposed by the lending bank.
- Money is also taken by many banks in the name of valuation charge, which means to compensate for the fees spent in checking the quality of gold, you should take care of this before applying for a loan.
- The documents which will be signed by the bank or institution at the time of giving gold loan, have a condition that if you are not able to pay the EMI of the loan for 90 days, then after the grace period, you will have to pay your dues. Can also sell gold pledged by
- Processing fees are also charged by many banks or institutions at the time of granting a loan, penalty is also levied on prepayment, processing fee can be as high as 0.5-2% of your loan amount.
- Your documents must be complete to take a gold loan.
Also Read: How To Get Education Loan In India
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