A gold loan is a credit availed by keeping the gold objects with the lender. If you're wondering which bank is best for a gold loan, read this comprehensive guide to make an informed decision.
Gold is a metal that increases in value over time, which makes it suitable for a loan. A gold loan is one of the quickest ways to get emergency funds despite having low credit scores.
A gold loan is a secured fund against gold objects with the borrower as collateral. The provided amount is only a percentage of the gold value of the object kept at stake.
You can repay the lent sum in monthly instalments. After the sum is returned, you can get your staked objects back. On top of this, you don't have a restriction regarding the end use of the gold loan. You can utilise the loan to meet your emergency fund requirements.
You might be wondering about the benefits of a loan against gold. Here are the reasons which must convince you to take a step toward acquiring the loan:
With a click, you can also receive instant loans like gold loans through the Fi Money app.
Understanding how the lending process works is necessary if you're wondering which bank is best for gold loans. Gold loans are available with different lenders.
In general, the lending process of the gold loan is akin to secured loans. To acquire a gold loan, you're supposed to take your gold objects to a lender. Deciding the evaluation of the articles along with the required documents, the lender provides a gold loan.
The borrower signs a loan agreement with the lender to pay off the sanctioned sum with interest. Keep in mind that the interest rates of each lender vary.
Based on the contract's terms, you can return the borrowed sum in instalments or at once in 3 to 12 months.
Gold loan is one of the most straightforward lending methods for Indians. Due to the availability of gold in most households, these loans against gold are excellent for emergency cash acquisition.
You can avail of instant loans with Fi Money. These pre-approved loans are given to borrowers with competitive interest rates. Through automatic in-app payments, you can avoid late fees as well. You can opt for a 100% paperless loan of up to ₹5 lakh.
A gold loan is a secured loan against a gold object from a certified lender, including banks.
Anyone with gold objects in their custody can opt for a gold loan by keeping the object as collateral.
You can apply for a gold loan by registering your request at a bank or lending agency. Once you have completed the application, the bank or agency will keep your object as collateral and release the loan amount.
A self-employed and salaried individual above 18 can apply for a gold loan.