Between March and July 2022, gold futures on MCX have fallen to Rs 50,622 per 10 g. Since gold prices have experienced a sharp drop, it would be a loss to sell your gold now. Even if you do so, you can thus use the gold only once. However, if you keep it as an asset, you can use it as a security to apply for a gold loan as many times as you wish to get cash.
Today, you can apply for a gold loan online to save time to meet your urgent fund need right away. This is the primary feature of a good gold loan. Want to know about the other important features? Here are the top 5 benefits to look for.
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Quick Loan Disbursal
If you choose a top lending bank, you can receive a gold loan in a couple of hours only. If you opt for an offline application, just one visit to the nearest branch is needed for the loan to be processed. Gold value evaluators are present at the branch to assess the value of gold right in front of you to maintain transparency and save time. Also, the sales team is present at the branch to review your loan application on the spot and credit the loan.
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Non-Jumping Interest Rates
A leading bank offers gold loans at non-jumping rates of interest. That is, these interest rates don’t change at any point during the repayment tenure. So, you need not worry about a rise in the rate which can increase the EMI burden. This can make the monthly instalments more affordable and help you pay them off conveniently. The interest rate would be between 13% and 16% p.a. To check that, you can use the gold loan calculator on the lender’s website.
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Easy Repayment Options
A good gold loan comes with various repayment options so you can choose one based on your convenience and repayment capacity. These options usually include:
- Equated monthly instalments (EMIs) over the chosen tenure
- Pre-payment anytime during the tenure
- Bullet repayment, i.e., full payment at the end of the tenure
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Flexible Loan Amounts
A reputed lending bank offers highly flexible gold loan amounts. For instance, you can borrow between Rs 10,000 and Rs 50,00,000 based on your cash requirements. The amount offered is flexible enough to help meet various short-term or urgent goals like:
- A medical exigency
- A 2/4-wheeler purchase
- Clearing accumulated debt
- Planning a holiday
- Financing a sudden relocation
You can use an online gold loan calculator to choose the required loan amount.
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Complete Safety of Your Gold Deposit
If you choose a well-known lending bank to apply for a gold loan, you need not worry about the security of your deposited asset. Your gold deposit will be sealed in your presence. Then it will be carefully taken to a high-grade safety vault to make sure that your asset is under constant protection and surveillance. After you pay off the loan, you can get back your gold and it will be in the same condition as it was when you made the deposit.
A gold loan has two more advantages. The eligibility criteria for the loan are simple and the documentation is minimal. You must be an Indian resident aged 21 when you apply and should own the gold jewellery that you deposit. The basic documents that you need to carry are usually your KYC documents, Form 60 or PAN, photograph and a bank cancelled cheque. Keep them ready to avail a gold loan quickly. Sometimes, you can upload the gold loan documents online to save more time.
