If you’ve ever thought about taking out a loan using your gold as collateral, then it’s important to understand the basics of how these types of loans work. In this article, we’ll cover everything you need to know about gold loans so that you can make an informed decision about whether or not this type of financing is right for you.
What jewellery can you pledge for Gold loans?
You can pledge any gold jewellery with a purity of 18 karats or more for a gold loan. The most common items that people pledge are chains, bangles, coins, and rings. However, you can pledged other items such as earrings, bracelets, and pendants. The value of your loan will depend on the weight and purity of your gold jewellery.
How can the common man avail of a gold loan in India?
The process of availing a gold loan is pretty simple and straightforward. Any Indian citizen above the age of 18 years can apply for a gold loan by pledging their gold jewellery or bullion with a bank or NBFC. The loan amount that one can avail usually depends on the value of the gold pledged and the purity of the same. In most cases, banks and NBFCs offer gold loans at 75-85% of the value of the gold pledged. The tenure of these loans is also pretty flexible, and one can choose to repay the loan amount within a period of 12-36 months.
What documents will you need for Gold loans?
When you go to apply for a gold loan, the lender will likely ask to see some form of identification. They may also ask to see proof of income, as well as your most recent bank statements. Be sure to bring these items with you when you go to apply for a loan.
The lender will also need to appraise your gold before they can give you a loan. They will determine the value of your gold based on its weight and purity. The more pure your gold is, the more it will be worth. The lender will give you a loan based on a percentage of the value of your gold.
Be sure to shop around before you take out a gold loan. Different lenders will offer different terms and conditions. Find the lender that offers the best terms for you and be sure to read the fine print before you sign anything.
How much time is taken to sanction a gold loan?
Gold loans are growing in popularity as a way to access quick cash, but how long does the process actually take? In this article, we’ll explore the average time it takes to get a gold loan approved, from start to finish.
What are the available repayment options for a Gold loan?
When you take out a gold loan, you have the option to repay the loan in multiple ways. You can make lump sum payments, monthly payments, or both. You can also choose to repay the loan early without any penalties.
What happens if you don’t repay a gold loan?
If you take out a gold loan and fail to repay it, the lender will likely take possession of your gold. The amount of time that the lender has to wait before taking possession of your gold varies by state, but is typically 30 days. Once the lender has your gold, they will sell it and use the proceeds to repay your loan. If the sale of your gold does not cover the entire amount of your loan, you will be responsible for repaying the remaining balance.
What charges or fees are involved?
When you take out a gold loan, there are a few charges or fees that you should be aware of. First, there is the interest rate. This is the amount of money that you will be charged for borrowing the money against your gold. The Gold Loan interest rate will be based on the current market value of gold and the amount of money that you borrow. The second fee is the appraisal fee. This is the fee that is charged by the lender in order to have your gold appraised by a professional. The third fee is the storage fee. This is the fee that is charged by the lender in order to store your gold while the loan is being processed.