How to get Gold Loan? (Gold Loan Interest Rate), (Gold Loan Process)

How to get Gold Loan :– Friends in this article I will tell you about How to get Gold Loan? (Gold Loan Interest Rate), (Gold Loan Process). So Friends please read this article till end carefully. How to get Gold Loan –

How to get Gold Loan

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What is Gold Loan?

Gold loan is a type of loan in which we take a loan by pledging our gold jewelery or other gold in a bank, NBFC or any other financial institution. Gold is considered to have high liquidity, which can be sold immediately and we can get money.

Due to this feature of gold, banks, NBFCs and other financial institutions easily provide gold loan, gold loan is 100% secured loan, so its interest rate is also less than other types of loans.

You can do gold loan for any of your needs like personal needs, agricultural work, medical emergency, higher education, vacation, marriage, home repair, any down payment or any other emergency etc.

Gold loan being a secured loan, its process is completed in a very short time, the documentation for gold loan is also very quick. Gold loan is available by appraising your gold jewelery or other gold on the basis of quality and market value, generally it is easily available up to 75 percent of the market value.

It is a short term loan, its interest rate is much lower than personal loan, gold loan is a flexible loan, in which you can take the facility of Term Loan (TL), Over Draft (OD) or Cash Credit (CC) as per your requirement. You can also apply online for gold loan by visiting the official website of NBFCs and banks and book your appointment accordingly.

:- How to get Gold Loan? (Gold Loan Interest Rate), (Gold Loan Process)

How is the market value of your gold determined?

You go to your nearest bank or NBFC, from where you want to take the facility of gold loan, first of all, the purity of your gold is checked by the Gold Assyer (Gold Assyer) contracted with the bank or NBFC. Along with checking, its weight is also done, after knowing the weight and purity, the market value of your gold is taken on the same date.

On the basis of this market value, the contracted Gold Assyer gives the value of your gold on a certified certificate or paper to the bank or NBFC officer, although the officer is always there in this whole process. In your gold jewelery only the value of your gold will be taken, do not add the value of any kind of gems or stitches etc.,

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Gold loan can also be taken against 24 carat gold coin issued by bank or RBI. The value of gold or gold keeps changing in the daily market, so the value is taken on the day you take the gold loan.

How to get Gold Loan

What are the documents required for Gold Loan?

To take a gold loan, you need documents related to your identity and identity such as PAN card, Aadhar card, electricity or telephone bill, rent agreement for renters, etc.

Some banks and other institutions can also take your income related documents from you, if you take agriculture gold loan then you have to give agriculture related documents like Khasra, Khatauni etc.

Can I take pledged gold jewelery on special occasions for a short period of time?

Some private banks and NBFCs have recently given this facility to the gold loan customer that they can give some security or extra money to mortgage the gold jewelery for some time, so that you can get married on marriage or other special occasion. You can wear your gold jewellery. If you need such facility, then before taking gold loan, confirm with the bank and NBFC.

What are the fees or charges for availing Gold Loan?

On taking a gold loan, first you have to pay the gold valuation fee, this fee is to be paid before getting the gold loan amount, after that the loan processing fee of the bank or NBFC which can range from 1.5% to 2.5%, Stamp charges are also levied according to different state for the validity of gold loan documents. Processing fees and stamp charges are not charged on Kisan Gold Loan up to a certain amount.

:- How to get Gold Loan

What is the interest rate of Gold Loan?

The interest rate of different banks and NBFCs is also different, but the interest rate of gold loan is less than personal loan, bike loan and car loan, the interest rate of gold loan also depends on the loan amount, if the amount is less. If so, then the interest of the gold loan will be a little less, if the loan amount is more then the interest rate will be higher because the risk becomes more on the loan of more amount.

Under the Kisan Gold Loan Scheme, if someone has taken a gold loan, then the interest rate of his gold loan will also be low, in some farmers gold loan scheme, subsidy is also given by the government.

At what percentage is the gold loan available?

Generally, Gold Loan is available from 75% to 90% of the market value of Gold Jewelery depending on the purity and quality (Carat) of your Gold Jewellery. These are decided by the banks and NBFCs.

What are the rules of Gold Loan?

Following are the rules of Gold Loan-

First of all you should not be a defaulter by RBI from anywhere.

Your credit rating (like cibil, crif or equifax etc.) should be as per the rules of the bank and NBFC.

For gold loan of higher amount, your loan repayment capacity should also be as per the rules of the bank and NBFC.

Your gold jewelery should be in karat as per prescribed standards (eg 18, 20 or 22 karat).

The use of gems, stitches, or other artificial items should be minimal in your jewelry.

Your documents should be complete.

Your farming documents should be complete for Kisan Gold Loan Scheme.

What happens if the gold loan is not repaid?

Banks or NBFCs charge panel interest (additional interest) every month, which is 2%, if you do not repay your gold loan installments on time.

Reminders or follow ups are sent to you by the bank or NBFC, if you have not deposited the gold loan installment for more than 3 months, then your loan will become NPA, then you will get additional 15 days of interest and arrears. installment will be given If still the outstanding amount is not repaid, then the bank or NBFC will auction your gold and recover the loan amount.

If your gold loan becomes NPA then your credit rating (like cibil, crif or equifax etc.) gets negatively impacted and you may find it difficult to take any further loan.

What are the benefits of taking a gold loan?

The process of gold loan is completed in very less time, the whole process is done in few hours.

The interest rate of gold loan is less as compared to other loans.

Very few documents are required to take a gold loan.

Gold loans are done for a short period of time, you can meet the recent requirement.

Your gold jewelery is kept securely in the bank or NBFC, so that you do not have to worry about the safety of your gold jewellery.