Apply for Gold Loan: If you are in an emergency and needed money right now, then your best pick is the Gold Loan. Apply for Gold Loan has the easiest process and time-saving process to get a loan. For decades, the gold loan has continued to be one of the popular financing options, particularly for those in immediate need of money within a short time span. Also, equaling an asset-backed loan, bankers do not acknowledge credit score for accepting the gold loan. This makes them a reasonable choice for those with low or no credit profile. However, since paying the loan has certain indications on your financial future, you must be careful when applying for it.
The Gold Loan is a very popular concept in India, and many organized lenders and unorganized lenders provide gold loans. Gold loans will help you in every phase of life. At the crisis times, an individual can get the gold loan within minutes with a few formalities. It is the most secure loan ever. It is the fastest way to get instant hard cash. Don’t feel ashamed if you are facing money problem just come to Rokdabazaar and apply for gold loan.
Benefits of a gold loan:
1) The best thing about the gold loan is that no income is required for applying. One condition is that you need to collateral your gold till you pay the money to the bank or lender.
2) The other good thing is in gold loans the lender or the bank doesn’t care for your bad credit history. Because the lender or bank only cares for the gold you are providing for collateral. You will get back your loan till you pay the money.
3) In gold loans, less documentation is required to get your work done.
4) Within a day, you will get your cash fast as much as your gold worth it.
5) Another good thing about this loan is that you can use the money for any purpose as long as you can repay the money to the bank.
These benefits only work when you apply for the loan carefully. There are several factors to think about before applying for the loan.
Seven Factors You Must Consider Before Applying For A Gold Loan
1) Loan amount
As you know, the gold loan is a secure loan. The amount of loan depends upon the gold worth value you deposit as collateral. As for the record, RBI has prohibited banks and NBFCs from advancing gold loan worth more than 75% of the gold’s worth. As lenders or bankers preserve margin amounts, you do not get the whole gold value as a loan.
2) Interest rate
As the interest rate of the gold loan depend upon the bank or the lender. It might vary between 10% to 28% per annum, loan tenure, LTV ratio, loan amount, etc. are the factors to determine the gold loan’s interest rate.
3) Processing fees
The processing fee covers the charges acquired by lenders or banks when preparing your gold loan application. It normally ranges between nil and 2% of the loan amount. Some lenders or banks also impose a flat fee.
4) Loan disbursal time
Gold loans require less documentation that means loan disbursal time is also less once the lender or the bank gives the green signal on your gold worth. These loans come with minimum paperwork and are usually disbursed within a few hours of making the loan application.
5) Loan tenure and repayment
Gold loans are short-term loans with the time limit ranging somewhere between 7 days and 2 years giving manageable repayment options. Aside from the normal EMI mode of repayment, borrowers can also choose to repay the whole interest amount upfront and the principal component later at the end of the loan tenure.
Most of the banks normally impose no fee in case of prepayment of a gold loan. Still, there are some banks, which may impose up to 2.25% of the notable amount if closed ere the fulfillment of the loan tenure.
7) Value or worth of gold
The worth and value of gold vouched are one of the crucial factors that settle the loan amount. Normally any sort of gold ornament, jewelry, or coins can be offered as collateral. Apply for gold loan with the right lenders.