Financial institutions provide easy loans to interested and eligible customers. This is how they earn their profit in the first place. But in order to avail of a loan from a financial institution, there are specific criteria set by the authorities that you ought to satisfy. If you do not satisfy the criteria imposed, you would certainly not be eligible to avail of the loan, and hence the institution would deny you the loan.
As an individual, you can look out for different types of loans that all the financial institutions and banks provide. Financial institutions lend out money, which is the loan amount, to their customers for a certain specified period of time called the tenure, within which the granted loan must be disbursed. Among the different types of loans that financial institutions provide, people mostly prefer taking a gold loan because of the lowest interest rate and the availability of gold in almost every household.
What good is that gold if it does not help you gather money when needed? Only if you don’t possibly use your gold every single day. So, you can certainly put it as collateral and avail of a loan against it. Keeping your gold as collateral would also provide security and a guarantee for your gold?
Which type of loan should you prefer?
You can avail a personal loan, which is a multi-purpose loan. A personal loan is granted to individuals based on their credit score or Cibil Score, employment history, repayment capacity, and a few more parameters. The loanee does not even need to pledge any collateral with the financial institutions in case of a personal loan.
The only problem with a personal loan is the interest rate that the financial institutions charge on the loan amount. They charge hefty interest rates, which often cause trouble. Taking gold, the loan becomes your best shot in such a case. Other than the case of a personal loan, the borrower or the customer must produce specific collateral against the value of which they would receive the loan amount, which is called the loan to value or LVT.
What is Gold Loan?
If you are about to take a loan and the collateral you are about to pledge to the financial institution is gold, then it is called a gold loan.
The institutions conduct a thorough inspection of the gold you have presented. On the completion of the inspection, if the gold is found to be pure and real, the customer is eligible to receive a loan amount worth the then value of gold, i.e., the customer would receive a loan amount based upon the real-time prices of gold.
You must bring along the minimum amount of gold against which you can avail of a loan. You can calculate the minimum amount of gold needed to avail of a gold loan just by using a specific gold loan EMI calculator. Besides calculating monthly installments for a gold loan, they are now used to check for the minimum amount of gold needed to pledge to avail of a loan.
You also need to make sure that the gold you are about to pledge to the financial institution as collateral is pure because if it is not, it can be considered an attempt to cheat. So, there would be a punishable offense, but let’s not waste our time on that.
Why Using Gold for Loan?
What good is the gold going to do if it just lies there in the locker and you are out there struggling to gather some money?
It is an asset that can bring you a good load of money at any time. So do not think much of it and apply for a gold loan. If you do not want to go through banks’ long and hectic procedures, you can instead contact a specific company that does all the work digitally. For instance, Rupeek is a trusted and certified financial institution that grants gold loans at very reasonable and affordable interest rates.
Through their completely digitized manner, they accept your registrations online and send their executives to your doorstep. The entire process, from verification of your gold to the transfer of money directly into your account, is initiated and completed within the time span of 30 minutes.
It is completely hassle-free, convenient, and best suited to your method of availing of a loan. You can choose the time slot of your convenience within which the executives would come to visit you.
After wrapping up the entire procedure, the executives take your gold to their banking partners and lock it safely in the vaults, where it will be safe and untouched until the disbursement of your loan.