This blog will look at the best gold loan tips you will read this year.
With an ever increasing population in India, and the demand for gold jewelry and ornaments, the need for gold loans has also increased. But this increase in demand has not been met with a commensurate increase in supply.
The Gold Loan can be a great option to help with financial worries. However, it is important that you keep these things in mind before you apply for the loan. Continue reading to learn more.
Covid has been difficult for all of us. Many people lost their jobs which led to financial instability. Management of mounting expenses such as school fees, medical bills, and business expenses is another challenge. People are forced to tap their savings or look for financial help through valuables, such as gold ornaments.
Benefits of a Gold Loan
- Instant Loan across the Table: Get instant access to funds. To find out how much you can borrow, use the online eligibility calculator for Gold Loans.
- Attractive Rates: The interest rate for Gold Loans varies from bank to bank. Depending on many factors such as purity of gold ornaments, IFL offers attractive interest rates.
- Easy and Simple Documentation: A Gold Loan does not require as much documentation as a Personal Loan. Only the KYC documents are required. If you apply through IFL, you don’t need to produce income proof. This is one advantage of applying for a gold loan through IFL.
- Repayment at End of Loan Tenure – The term of a Gold Loan can be very flexible. The loan can be repaid in either 3, 6 or 12 months depending on your schedule.
- Complete Safety.It is stored in a vault in a bankroom when you pledge gold jewelry or ornaments to IFL. You can rest assured that your security and safety are protected.
SOME TIPS
- Know the quality of gold eligible for loan: You should know the purity of the gold that is eligible for loan.Creditors will only approve loans for gold objects with purity levels of 18-22 carat or higher. Additionally, ornaments with precious gems embedded in the design will not be approved for loans. The loan value will be determined by the purity and weight of the gold.
- Considering which form of gold is eligible for the loan: Ornaments have a higher sentimental value and may encourage borrowers to pay back the loan amount on the due date. In India, lenders prefer to accept gold ornaments as collateral.
For a gold loan, banks will not accept gold bars or gold bullion. Gold coins can be used to get a loan for gold, but they must not exceed 50 grams in weight and must be 99.99% pure. Borrowers must be familiar with all terms and conditions. Prepayment penalties for gold loans are not common among creditors. If your lender does, negotiate with them or find an alternative.
- Not calculating LTV: LTV stands for Loan-to-Value Ratio. This term is used by creditors to denote the ratio between an asset’s net value and a loan. Creditors use this ratio to evaluate risk. To assess risk, LTV ratios can be used. A higher LTV indicates a greater risk.
Borrowers must also consider the LTV ratio in order to get maximum credit. Creditors use the gold’s value to determine how much they can lend.
IFl Gold Loan comes with super amazing benefits such as
- Lowest Interest Rate
- Highest Gold Value
- Zero Processing Fees
- 26 Years old RBI Registered Company
- Loan in 30 Minutes at Your Home
- Online Interest Payment
- You can get a gold loan service from our Doorstep Loan Service or at one of our branches below. The Gold Loan officers will be glad to assist you with a fast and transparent transaction. We offer the highest value for your gold and the lowest interest rates.
- Your gold remains safe with us. However, you have the freedom to take advantage of every opportunity.
- Other loans require income proofs or salary proofs, and many other documents. However, the IFL Gold Loan requires minimal documentation and allows for quick disbursement. All you need for a Gold Loan is 18-carat gold. The Reserve Bank of India regulations dictate that the loan amount will depend on the gold’s value. Your gold is insured, protected and stored with complete security in our fire- and burglary-proof vaults.
CONCLUSION:With the recent changes in the economy, finding the right Gold Loan is more important than ever. We hope that our blog post has been helpful in answering some of the questions that you may have had in mind. If you have any further queries do contact us.