In the last few decades, gold loans have become more common. But, with an ever increasing population in India and 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.
Many people are having financial issues and need help with their bills. The Gold Loan can be a great option to get through your troubles. Before you apply, though, keep these things in mind because they could improve your chances of getting approved. Continue reading to learn how.
It has been a time of turmoil and stress as much as it is a time of hope. There are many people who have lost their jobs, and needed to tap their savings or look for financial help through valuables, such as gold ornaments.
Benefits of a Gold Loan
1. Instant Loan across the Table:
Get instant access to funds. To find out how much you can borrow, use the online calculator for Gold Loan. Once you have been approved for a loan there are three simple steps: Apply for funding, arrange your repayments and manage your account online.
2. Attractive Rates:
Muthoot Fincorp’s Gold Loans are designed to provide you with the highest yield. Features such as the relatively low amount of gold required, flexible repayment options and attractive interest rates make this loan one of our most popular investments.
3. Easy and Simple Documentation:
Gold loans do not require as much documentation as personal loans. KYC documents are only required, and 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.
4. Repayment at End of Loan Tenure:
If you don’t have time to wait for an installment plan, a Gold Loan may be the perfect solution for you. The Gold Loan is a great option when you need money fast. With a Gold Loan, there is no long wait. You can repay in either three, six or 12 months, depending on what works best with your schedule. There are many options when it comes to how you want to use your loan. A Gold Loan can be used for any expense, from larger items to smaller purchases such as groceries and fuel.
5. Complete Safety:
We are proud of the safety and security that you feel when you pledge gold jewelry or ornaments to International Fine Jewelry.
Know the quality of gold eligible for loan:
When choosing gold for your loan, know the purity level of the object you are purchasing. Higher purity is better than lower purity. The purity level will determine the value of your loan. Jewelry will only be approved for loans if it has at least 18 carat gold, or if there are precious gems embedded in the design . In addition to the weight of the gold, ornaments with precious gems embedded in the design will not be approved for loans.
Considering which form of gold is eligible for the loan:
In India, the acceptance of gold ornaments can encourage the borrower to pay back the loan amount on the due date. The sentimental value of such ornaments is higher than other precious metals like silver and gold.
Borrowers of gold loan should be aware of their creditworthiness. Banks will not accept gold bars or gold bullion for a loan. Interest rates can vary greatly from lender to lender, so make sure to compare interest rates online before making a decision on which bank to work with. If your lender does not accept gold coins as collateral, check out our list of alternative options for borrowing money, such as pawn shops.
Not calculating LTV:
LTV is calculated by dividing the value of the asset to be used in a loan amount by the value of the loan. Creditors use LTV to assess the risk of lending to a borrower. It is important to understand that LTV is not always directly proportional to your creditworthiness, as other factors may contribute to making your business more or less risky.
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