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To make your home loan journey a smooth sail, in this article we will help you know eligibility criteria, rate of interest, process, necessary documents, comparison and transfer for lowest rates. New Home Loan at basic interest rates from Borrow-Loan Company. You can apply online and check your eligibility and easy EMI. Fast Approval for you are gold loan.
All loans are not created equal, gold loan has become a great option for people to use.
As the name does already suggest, this loan is given against gold. Gold loan is a secured loan that enables the borrowers to pledge their gold and get a cash loan. This is generally a loan with a short tenure to be used for children's education or cope with other financial problems.
Gold loan is much simpler since it is a secured loan. The applicant needs to be older than 18 years. Also, he should be able to produce the gold that can be mortgaged with the bank. The bank would also check if the applicant has the ability to pay the sum back.
The rare of interest on the gold loans can vary. You can check out your eligibility with the bank to find out the interest rate that you need to pay. It is a common type of secured loan and has been in practice since long.
The maximum amount that you can borrow definitely depends on the lender. It can vary from anywhere between Rs. 1,500 to Rs. 1 crore. The bank or the lending institution will be the one determining the maximum amount that can be lent to you.
The approval for a gold loan is very fast, probably faster than most others. If all the requirements is fulfilled by your application, it would not take more than a few hours to get the promised sum. This is because secured loans are much easier to process by the bank.
The tenure of repayment of your gold loan is dependent on your lender. You can pay back your gold loan in as little as a day. The gold loan can generally be paid back to the lender in a maximum of 48 installments.
A nominal processing fee is levied on your gold loan. The fees charged on your loan will depend mostly on your lender. It would generally not exceed 2%. You are expected to pay a gold validation charge and the bank would incur this.
Yes, there are foreclosure charges on a gold loan in most cases. The charges would always be less than 3%. These charges would be applicable on the outstanding amount of your loan. You should discuss this with your bank authorities.
Reclaiming the pledged gold is quite easy and simple. Make sure that you plan your repayment efficiently and that you do not default on your payments. If you fail to repay the loan in the stipulated time, your gold ornamnents would be auctioned.
No. You can pay the loan back using the medium that suits you. You can use Cash or Cheque. The lender can even accept Demand Draft or Online Fund Transfer. You can use a medium of your choice for the repayment of gold loan.
A fine would be levied if you are late in repaying the loan. The annual penalty can be anywhere between 1% to 6%. This would be in addition to the rate of interest you are already paying for the loan. So defaulting on your gold loan is not a good idea.
Two documents are necessary - ID proof and address proof. You can submit your PAN card, driving license, passport, form 60/61 or Voter ID card as ID proof. For address, you can submit utility bills or house registration documents.
Yes. The gold loan can be repaid partiality at any point in time. But you need to keep in mind that the deposited gold would be returned once the entire loan amount has been repaid. So, you would need to pay the full amount eventually.
The banks or your lender would take a lot of precautions to store your gold and keep it safe till the repayment of the loan. Gold ornamnents often carry a lot of sentimental value. So the lenders would act as custodians while the gold ornamnents remain with them.
The gold loan schemes generally determine your repayment on the basis of simple interest on a monthly reducing balance. The monthly instalments would be calculated on the rate of interest being charged by the lender.