Gold has a lot of qualities that make it extraordinarily valuable all over history. Its brightness, durability, indestructibility, and attractiveness are the factors that made it highly valuable not only in cultural terms but also monetarily. And one of the most common benefits of gold is you can monetize it most quickly and simply to get money. In the past pawnbrokers and jewellers were the only people who used to loan some amount of money against gold coins and jewellery. But the interest they used to charge was sky-high, failing a borrower to pay back the loan and get collateralized gold back. Below mentioned information about the gold loan will help you to get the best gold loans in India.
Understanding what is a gold loan in India
A gold loan is a type of loan in which an individual leases his or her gold coins, bullion, or ornaments as a pledge with the non-banking finance companies. The moneylender, in return, offers favourable and untroubled interest rates. The amount of the money you are going to get a loan against the gold depends on the purity of your gold jewelry, the current value of the gold in the market, LTV Ratio, and some other policies of the institution. Gold Loan EMI calculator can be used to calculate the EMI against the gold loan.
Gold loans are preferred over personal loans, why?
As compared to personal loans, gold loans are more secured. In a gold loan, it is required to have a gage deposit, whereas in personal loans gage deposits are not mandatory. The gold itself is the collateral against the loan. Through a gold loan, you can get up to 50 million, on the other hand, personal loans only allow up to 4 million. The low rate of interest is another attribute of gold loans that has persuaded individuals to take advantage of gold loan services for their financial requirements. You wind up paying less money when you go for a gold loan, a lot better choice in comparison to personal loans. Why do most people choose to invest and get the best gold loan in India? Because it has several campaigns and services that people can easily trust. Similarly, anyone can access the gold loan EMI calculator which is an online tool for the EMI calculation that needs to be paid.
How one can apply for a gold loan in India
The very first step is to approach a moneylender, the lender will inspect your gold coins or jewels and evaluate the maximal amount of loan you can borrow. The application procedure for getting the best gold loan in India is effortless. Getting the gold loan doesn’t involve lots of complex processes. You will need to fill up an application form and attach some mandatory documents including a photocopy of valid ID proof and address proof. Once the verification process is done and the value of your gold is calculated you instantly get the money and can utilize it for your desired purpose. Before jumping to the application process, EMI calculation is very important that should be done approximately. For this, you can use the gold loan EMI calculator.
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Choose from a wide range of schemes available; there’s one just right for your needs. Use your unused jewelry to cope with your difficult times and take care of your necessities.
3 Things to consider before taking the best gold loan:
- Analyzing Gold Value and its purity: The loan amount of gold is dependent on the value of the gold. More the purity of the gold, the more the value of the gold. And it should be noted that the purity of the gold must be a minimum of 18 carats to qualify the eligibility criteria for a gold loan. And every lender uses different rates per gram of the gold value to advance the funds against the gold loan, therefore ensuring the rates per gram to get the best deal.
- Comparing the gold loan interest rates: It can be determined by the lender’s risk assessment of the browser. The gold loan interest rate may vary between 6-25 % per annum. Comparing the various gold loan interest rates helps the person to select the best interest rates according to their needs and requirements.
- Choosing a credible lending institution: Choosing a reliable institution plays a very significant role in gold investment. Avoid getting gold loans from unprofessional lenders because some of them are fraudulent and fake. A genuine and regulated credible institution provides transparency and always puts the customer’s needs and satisfaction first.
Choose the gold loans from a wide range of schemes available; there’s one just right for your needs. Use your unused jewelry to cope with your difficult times and take care of your necessities. We hope that from this article, you got the insight and the key points of how to get the best gold loan in India. Rupeek can provide you with the best and most profitable gold loan at a low-interest rate. They provide low interest at both online and offline gold loans at the convenience of the customer’s homes. The approach is to make valuable credit accessible for everyone through zero processing fees and no hidden charges.