Things to Know Before Applying for Gold Loan

A gold loan is a loan against the physical pledge of gold. It can be availed of against gold bars or gold ornaments. The bank or NBFC carries out a complete assessment before the loan amount is disbursed into your account. So, if you are planning on getting a gold loan, here are a few things that you should know:

Easy and hassle-free

Getting a gold loan is an extremely easy and quick way to get your gold liquidated. So, if you have any financial emergencies, a gold loan would be your best bet. Anyone who is an Indian citizen and owns gold can apply for a gold loan in India. Also, nowadays, there are various non-banking finance companies (NBFCs), apart from banks and local jewellers, that offer gold loans at quite lower interest rates. 

Quick documentation 

One does need a lot of documents while applying for a gold loan. All they would need is proof of identity, proof of address, and a couple of passport-sized photographs. However, in some cases, the bank may ask you to provide additional documents like a witness letter in the case of illiterate borrowers. 

Repayment options 

A gold loan also offers you a bunch of flexible repayment structures. There are typically four types of repayment options in gold loan. These are regular EMIs, partial repayment, only interest EMI, and bullet repayment. Also, these days, you can even know your monthly instalment through a gold loan EMI calculator. This will also help you get to choose a repayment option that suits your requirements the best. 

We hope that this information will help you go about your gold loan process without any hassle. Also, it is suggested that one should only consider a reputed bank or NBFC to ensure a genuine, convenient, and smooth process.

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