Gold loan is a loan given by a bank or institution to an individual who pledges their gold
jewellery for money. The gold should be within a range between 18 to 24 carats. The loan
amount is a certain percentage of the current gold price, as well as the quality of the gold.
This will vary from bank to bank and is typically up to 80 percent.
The bank will also require certain documents, after which the Instant gold loan online will be approved and sanctioned. To make the process easier and clear, availing gold loan through a loan
aggregator, Buddy Loan, can help fit your profile to the organisation and dirsburse loan with
very few necessary documents online.
Documents Required for Instant Gold Loan online approval.
Different banks ask for different set of documents. Some of the common documents required
include Passport size photograph, PAN, Voter’s ID, Aadhaar card, passport, driver’s licence,
electricity bill, income proof, identity proof and address proof, etc.
Key Features of Gold Loan
Taking a gold loan from a bank or a financial has some features which are more
advantageous than a loan. These features include
Quick Disbursal
Minimum documentation required and faster processing time because the loan is secured by
your gold.
No Restriction on Use of Loan
The loan can be used in any manner or for any purpose. As the loan is not for a specified
purpose, the loan is not monitored. This gives you the flexibility to meet any immediate
expenses
Secured Loan
Other than the pledged gold jewellery there is no need to provide any other collateral or
guarantor required
Lower Interest Rates
As this is a secured loan, the interest rate is comparatively lower than a personal loan and
other types of loans, the interest rates begins at 11.99% p.a.
Easy Liquidity
Gold jewellery is generally an idle asset lying at home or in the bank locker. Gold loans
provide instant liquidity when an emergency arises or when an undeniable expense is
anticipated.
Foreclosure of Gold Loan
The gold loan is considered a short term loan and has a tenure of 1 to 5 years. However, the
Gold loan can foreclose the loan before the tenure lapses. While some banks do not charge
a foreclosure penalty, some of the banks will levy a charge of 2% to 4% of the outstanding
balance.
Final Word
Before you sign on the dotted line, it is advisable to check and compare the interest rate,
processing fee, late payment penalties, pre-payment charges, and other hidden costs so that
you are not taken by surprise when these payments are to be made.
While taking a loan, one should be sure that the loan can be easily returned. Defaulting on a
loan will adversely affect your credit rating, and you will find it difficult to get another loan.
jewellery for money. The gold should be within a range between 18 to 24 carats. The loan
amount is a certain percentage of the current gold price, as well as the quality of the gold.
This will vary from bank to bank and is typically up to 80 percent.
The bank will also require certain documents, after which the Instant gold loan online will be approved and sanctioned. To make the process easier and clear, availing gold loan through a loan
aggregator, Buddy Loan, can help fit your profile to the organisation and dirsburse loan with
very few necessary documents online.
Documents Required for Instant Gold Loan online approval.
Different banks ask for different set of documents. Some of the common documents required
include Passport size photograph, PAN, Voter’s ID, Aadhaar card, passport, driver’s licence,
electricity bill, income proof, identity proof and address proof, etc.
Key Features of Gold Loan
Taking a gold loan from a bank or a financial has some features which are more
advantageous than a loan. These features include
Quick Disbursal
Minimum documentation required and faster processing time because the loan is secured by
your gold.
No Restriction on Use of Loan
The loan can be used in any manner or for any purpose. As the loan is not for a specified
purpose, the loan is not monitored. This gives you the flexibility to meet any immediate
expenses
Secured Loan
Other than the pledged gold jewellery there is no need to provide any other collateral or
guarantor required
Lower Interest Rates
As this is a secured loan, the interest rate is comparatively lower than a personal loan and
other types of loans, the interest rates begins at 11.99% p.a.
Easy Liquidity
Gold jewellery is generally an idle asset lying at home or in the bank locker. Gold loans
provide instant liquidity when an emergency arises or when an undeniable expense is
anticipated.
Foreclosure of Gold Loan
The gold loan is considered a short term loan and has a tenure of 1 to 5 years. However, the
Gold loan can foreclose the loan before the tenure lapses. While some banks do not charge
a foreclosure penalty, some of the banks will levy a charge of 2% to 4% of the outstanding
balance.
Final Word
Before you sign on the dotted line, it is advisable to check and compare the interest rate,
processing fee, late payment penalties, pre-payment charges, and other hidden costs so that
you are not taken by surprise when these payments are to be made.
While taking a loan, one should be sure that the loan can be easily returned. Defaulting on a
loan will adversely affect your credit rating, and you will find it difficult to get another loan.
