Easy Way To Take Gold Loan – What is Gold Loan

Easy Way To Take Gold Loan – People buy a lot of gold in India and for this reason today you will find gold in every house. In the form of jewelry or currency or in the form of idols.

When you need money in times of trouble, gold is very useful because you can batch it up and take money. But sometimes it also happens that the gold that you have is either a family jewelry or an idol of Gods.

For this reason you cannot bench them. Even though you cannot sell them, you can take a loan against them.

Now many banks and finance companies give you the facility that you can take a loan on them by keeping your gold ornaments as security. Which we call Gold Loan.

What Is Gold Loan

Gold loan is similar to personal loan, whose money you can use for any work. But there is a slight difference between personal loan and gold loan.

Your credit score is seen to take a personal loan and if your credit score is bad then you do not get a personal loan.

But this is not the case in gold loan, even if your credit score is bad, you will get gold loan.

What Are The Benefits Of Gold Loan

Gold loan is such a loan which you get very easily because you give gold as security for gold loan. In this you do not need to give many documents and you can use the money taken by it anywhere.

How do banks and finance companies give gold loans?

According to the rules of RBI (Reserve Bank of India), any bank or financial company can give you a maximum loan of 75% on the value of your gold. Accordingly, you cannot get LTV (Loan To Value) more than 75%.

Even after RBI, banks and financial companies also have their own rules and according to those rules you get LTV up to 60-65%.

Let us understand all this with the help of an example.

Example: Suppose you have 10/gram Gold whose price is (Rs 2000 per/gram). So what will be the cost of your 10 grams of gold.

10 X 2000 = 20,000

Now if the bank has given you LTV 65% then how much money will you get in loan?

20,000/65% = rs 13,000

So the bank will give you Rs 13000 as loan.

How To Calculate Gold Loan

How is the price of gold calculated in Gold Loan?

To calculate the price of gold, the bank calculates the gross of the last 30 days of the closing price of 22 Carat Gold and the price of gold is fixed accordingly, but if your gold is of 22 Carat, then you will get money for it.

When you give jewelery for Gold Loan, then only Gold is considered as the value in the loan. If there is a diamond in your jewellery, then it will not be counted in the value.

What Is The Interest Rates Of Gold Loan

The interest rate on gold loan is done according to the bank and finance company because they have control over it, but the interest rate of gold loan is similar to that of personal loan.

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The interest rate and EMI of the rest of the gold loan depends on its LTV.

What Is Gold Loan Turner

Gold loan tenure is generally 6 months to 1 year, but in some banks and financial companies, you can also get longer time period, which can be from 1 year to 3 years.

How To Repay Gold Loan

You can pay the gold loan in the form of EMI. In which you can deposit principal and interest with the help of EMI. If you want, you can also take a loan after deducting the interest amount, in which you will have to pay only the principal at the end.

Can jewelery be returned after paying the gold loan?

If you deposit the full amount on time along with interest, then the bank returns your jewelery to you.

What Are The Documents Required For Gold Loan

1. Identity proof

2. Address proof

3. Aadhaar Card

4. PAN card

5. Gold

What Are The Disadvantages Of Gold Loan

1. If you do not miss the money taken on gold loan, then the bank gives your jewelry back.

2. On Gold Loan, you get a loan of 65% of the original amount of your gold.

3. Some processing fees are also applicable on gold loan.

4. The tenure of Gold Loan is of time period, hence more interest has to be paid on it.

5. Gold Loan is not available for a longer period.

Gives Gold Loan

Some important banks and finance companies offering Gold Loan.

1. SBI Bank Gold Loan Scheme

2. ICICI Bank Gold Loan Scheme

3. Axis Bank Gold Loan Schemes

4. Muhoort Finance Gold Loan Schemes

5. Manna Puran Finance Gold Loan Schemes

Gold Loan Kya Hai, how did you like this post of ours, do tell us if you have any question related to gold loan in your mind, then you can ask by commenting.

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Easy Way To Take Gold Loan – What is Gold Loan – How to take Gold Loan