Gold Loan life saver
Gold loan is a secured loan that customers take from Banks or non-banking financial companies (NBFCs) in lieu of gold ornaments or articles. This is one the most easy ways to get out of financial troubles during times of misfortune. This sensible alternative rescues you when you are in need of quick cash, for the minimum formalities it requires and for its fast disbursement.
Some banks provide attractive interest percentages on gold loans, with no or minimal processing charges and fast disbursement of loan amount. Either than that there are many other benefits of getting a gold loan, they are
As gold is given as a security, there is no necessity to pledge any additional article for the basis of obtaining the loan. For the banks also, gold is preferable over other items given as a collateral, as it can be sold away fast.
The gold loan interest percentages are lower than personal unsecured loans. The gold loan interest rates range from 7.5%-14% and the personal loan interest rates do range around 15%, because mostly these loans are unsecured.
Several banks furnish customers with a "pay interest only" alternative, where only interest of the loan can be paid while reimbursing the loan, and the principal proportion can be returned at the end of the term.
Numerous banks proceed with zero processing charges for issuing gold loans for the amenity of the debtor.
The foreclosure expenses are again least, like 1% of the loan amount or zero, as offered by Banks or NBFCs.
In a gold loan the gold is pledged as a security, some banks do not ask for any income proof of the debtor.
Banks do not count on the credit score of the debtor for disbursing the loan taken in lieu of gold.
The gold loan amount is paid out within a few hours after the required documentation work, accordingly it becomes the most practical option at times of monetary emergencies.
The gold lent as collateral is retained safely with the bank or financial institution, and thus it becomes the prudent option also.
There are many Banks and NBFCs which lend gold loans at different interest rates and come with distinct offers for the customers. Few of the banks and NBFCs providing gold loan are given below-
SBI Gold Loan
State Bank of India is very popular for the low rate of interest it offers for its customers. The agricultural gold loan interest rate given by this Bank is 7.5 percent and for other gold loans the percentage varies. The processing fees is 0.5 percent of the principal amount and minimum processing fees is Rs. 500.
Canara Bank Gold Loan
Canara Bank gives the lowest gold loan interest rate of 7.35 percent onwards for the period of 6-12 months, for both old and new borrowers. The jewel loan interest rate depends upon the quality and purity of gold, the loan amount to be borrowed and the period of repayment in years or months.
Punjab National Bank Gold Loan
Punjab National Bank provides loans for both existing and fresh borrowers at the same rate of interest for Gold loan that is 8.75 percent. D processing fees of Punjab National Bank is 0.7 percent of the entire loan amount borrowed with additional taxes. The loan repayment period can extend from 1 month to 1 year.
Manappuram Gold loan
Manappuram also offers their clients with low gold loan interest percentages for or both former and recent customers which is 9.9 percent. The processing fee is just Rs. 10 to be paid at the time of settlement of loan. The loan repayment time may extend from one day to 3 months.
Muthoot Finance Gold Loans
< Muthoot finance gold loan is regarded to be one of the most popular Gold loans and a trusted Financial Service Brand. This company is famous for the low rate of interest it provides for its customers, that is 0.82 percent per month. For 22 carat gold jewellery, Muthoot Gold loan rate is Rs 3161 with maximum LTV of 75 percent in today's date. The documentation process is also very convenient for the customers. All a customer needs to submit to get the loan is a proof of Identity and address proof.
Financial constraints must not be boundation of a person's success and that's why a gold loan helps to overcome the barrier of monetary crisis.
Also read this: Basic Knowledge Of Gold Loan