When the requirement of funds is urgent, then opting for a source which will take days or weeks is not a sensible decision. Instead, you need to opt for the option that can provide you with funds within hours, and one of such sources of funds is a gold loan. Whether you need funds for a medical emergency or to meet unexpected expenses during a wedding, gold loan is the solution to your problem. The amount of credit you can get depends entirely on the value of the gold you take with you to give as collateral. Gold jewellery, coins, bars can be used as collateral to avail the loan. The best market to fetch a loan can be Delhi. The Gold Rate in Delhi shows a favourable trend and positive ration for the market.
However, there are certain aspects which you need to assess before approaching for the gold loan, and they are:
Documentation : You can apply for gold loans, both online and offline. Although, if you apply online, you would still have to visit the branch with your gold to submit as collateral. The documents required for availing the loan is minimal. Photographs, identity proof and address proof, is all you need with your application form to get your loan application accepted.
Gold Deposit : Once the application is submitted and approved, you would be required to enter into a gold loan agreement with the bank. The next step would be to provide the gold that was valued for a gold loan. The disbursal of the amount will take place only after the gold is submitted. Thus, until the time loan is repaid the custody of the gold remains with the bank.
Loan Amount : The loan amount depends highly on the kind of item deposited and its weight. It means the value of gold would be higher if its purity is high, and the gold’s weight. In the case of jewellery, the more significant the amount of gold in the piece, the higher will be its value. Also, in terms of deciding the loan quantum, the lenders usually provide 60%-70% of the calculated value as loan. Thus, this aspect is also to be kept in mind while setting your expectation for the loan amount.
Charges : Lenders would charge some processing fee or valuation fee or maybe both, it varies from lender to lender.
Loan Default : In case you default on your gold loan, then the lender has complete right to use your hypothecated gold for recovering its loss. Thus, failing to repay your gold loan will have you lose your gold item for good.
Safety: The safety of the place where your gold will be kept is of utmost importance. You can always check the security of the lender and also check in the middle of loan tenure whether your gold is kept safe or not.
Now, that you know the various points to consider before opting for the gold loan, the next step is that you learn how to apply for the gold loan. Ensure that you have planned and designed your personal budget accordingly to repay the loan amount on time. The application process of the gold loan is quite simple. In case you apply online then you can either apply on the website of the lender or use any loan aggregator’s platform. These loan aggregators will help you in finding the best loan deal and also schedule your branch appointment so that you can straightaway visit the branch, submit the collateral and get your loan disbursed.
Another option you can try is to directly go to the branch which provides the gold loan, fill the application form and submit it with required documents. Then your gold will be valued, then submitted, to be followed by disbursal of your loan.
