We come across a lot of commercials that project as gold loans meeting the immediate financial needs of the family members such as paying school fees, meeting business needs, etc. These commercials are not a mere exaggeration, and in reality these gold loans are highly useful in meeting the immediate financial requirements of the family, such as a medical emergency. They come in handy when you are planning for your child’s higher education in a big university or when you run out of funds while planning their wedding.
In India, several lenders offer loans against pledged gold at attractive rates of interest. The jewel or the piece of gold will be qualified for the loan amount depending on its weight. And they are indeed one of the easiest and the most secure ways to meet our immediate financial needs instantly.
Interest rates for gold loans:
The gold loan interest rate varies depending on the bank or the finance agency in which the gold is pledged. The gold loan interest rate for 2021 is roughly between 7.3% to 12.5% depending on the agency. Similarly, the loan amount and the tenure for replacement will be decided by the agency.
One of the best features of the gold loan is that it is very easy to acquire and we can avail of the loan with only the KYC documents without demanding any income proof. Its documentation process is very simple and it can be executed according to the convenience of the loan seeker.
Eligibility and the process of applying for a gold loan:
If you want to pledge your ornaments and gold jeweler against a loan amount, you must satisfy the eligibility criteria that has been prescribed by the lender. This eligibility criterion depends on the lender and varies between one lender to another.
- The applicant should have completed at least 18 years of age.
- The gold jewelry should be at least 18 carats or above.
- They can only pledge gold articles and ornaments.
- The gold loan lender will check the creditworthiness of the applicant.
You can avail gold loan in your preferred bank either through online or offline channels. To avail the loan online, you will have to visit the website of the lender and click on the loan that you wish to apply for. You then have to enter the required details in the online application form and submit the form online.
You can apply for the loan offline, by visiting the nearest branch of the lender. You will have to carry the required documents and the gold jewelry to avail the loan. After you submit the form, the agency will verify the application and if the application gets approved the amount will be sanctioned almost instantly. The documents that are required to get the gold loan are,
- Duly filled application form for seeking the gold loan.
- Passport-sized photographs of the applicant.
- Identity proof and address proof of the applicant.
- Signature proof and proof of age
- Form 60 and PAN card
The gold loan is by far the easiest and the quickest way to get the required funds, at times of a financial emergency. But it is important to perform appropriate research in finding the best loan that will suit the requirements and are within the repayment capacity of the applicant.
Things to consider before taking a gold loan:
Gold loans come with an interest rate and you can avail of the cheapest gold loan by considering these important factors. This will help in rendering a positive borrowing experience and use the stored gold jewels to meet immediate cash crunches.
- Gold loan amount: The quantity of gold you pledge, will offer you the gold amount that you aspire for. Some lenders will also specify a minimum and maximum grams of gold for seeking a loan. You must fulfill the requirements of the lender while seeking a gold loan.
- Rate of Interest: The gold loan interest rate 2021 differs for different lenders and thus it is important to ascertain the interest rate and your repayment capacity before seeking a gold loan. The interest rate of gold loans is much lesser compared to unsecured loans.
- Processing fee: Apart from the interest rate, the loan lenders can levy several other charges such as the processing fee, appraiser fee, documentation fee, loan overdue fee, etc. These charges could increase the total cost of the loan. Do calculate all these costs, before applying for a gold loan.
- Loan tenure: Generally, the repayment tenure of the gold loan ranges from 3 months to 36 months. Take your repayment capacity into consideration, while opting for a gold loan with a suitable loan tenure.
- The credibility of the lender: Gold loans are offered by several banks and financial institutions, and these are included in their product portfolio. But the loan seeker should ascertain the credibility of the lender before seeking their loan.
Finding the cheapest gold loan:
Though gold loans are offered instantly, they do come with a fee. You will be asked to pay interest at specific tenures and there are fines levied for late payment as well. To find the cheapest gold loan, you should compare the financial institutions, their features, benefits, and their terms and conditions. Choose the lender who levies lower interest, offers a higher amount per gram of gold, and those lenders who hold a flexible repayment schedule.
Swift loans – your ultimate destination for gold loans:
Swift loans are one of the finest gold financing companies with an attractive loan portfolio. They offer both personal and business loans against gold jewelry. Swift loans gold loan offers the highest loan limit of Rs. 20 lakhs against gold jewelry at attractive interest rates. They also have flexible repayment options and help people with tremendous financial ease. They meet the needs of individuals who possess gold jewelry but are not able to access formal credit within a reasonable time frame. It is one of the best financing institutions that meet the financial requirements of individuals, who have trouble finding credit with other lenders.