Weddings are one of the most special occasions in anyone's life. It is the day when you make a lifetime commitment with someone that will be with you throughout your life journey. Your partner will be the one that will stay for both happy and sad times that will come my ahead. And this beautiful occasion deserves a grand ceremony at a perfect venue with delicious food and luxurious decor.
But for all this, you need something that is very important – money. A lot of individuals save for this event for a very long time but not everyone has saved enough money to fund their wedding. And this is where the gold loan comes in.
A gold loan is an unsecured loan that can be availed at any bank or NBFCs. You can easily get funds through this loan by pledging your gold ornament, coin or pieces. The Gold Loan Interest Rate is very low when compared to personal loans and wedding loans. This makes it an ideal loan option for those individuals who are looking to get funds for the wedding.
Advantages of gold loan
Flexibility: There are multiple banks, private institutions and NBFCs (Non-Banking Financial Companies) that provide the facility of gold loan in the market so customers get the flexibility to compare various banks according to their interest rate, LTV rate and loan amount and then choose an ideal gold loan option for them.
Documentation- The entire documentation process of gold loan is very quick, easy and effortless. You don't have to submit a bundle of paperwork to get funds through this loan. Banks will only ask for the application form and some basic KYC documents like Aadhar card, Pan card, Voter ID card, Ration card, Electricity bill, etc.
Credit Score: You don't necessarily have to maintain a credit score to get your gold loan application approved. You can even use this loan as an opportunity to increase your credit score by repaying your loan installment on time.
Repayment- Banks give customers the flexibility to choose a repayment structure and tenure boarding to their income budget expense and repayment capacity. So you can calculate your monthly budget and then choose EMI installment accordingly.
Processing fee- The entire process is very quick, effortless and hassle-free. So banks don't ask for a lot of charges like processing fees. Because this loan option is usually processed within one or two hours. Example:- Muthoot Finance Gold loan .
How do you get a gold loan?
Borrowers can apply for a gold loan facility using both online and offline mode.
Online Mode-
- You'll have to firstly read everything related to the gold loan facility at the bank's online website.
- Then you have to check the eligibility criteria that is required by the bank. If you meet the eligibility criteria then you can move ahead and fill the application form.
- Complete all the details asked in the application form and attach the required KYC documents along with that.
- Once you are done with the documentation process a bank representative will visit your house to value your gold ornament.
- The bank will then state all the information regarding the loan amount, interest rate, repayment tenure, structure and other charges in the terms and condition document.
- After you've consented and signed the document the bank will disburse the loan amount to your bank account instantly.
Offline Mode-
- State the bank's nearest branch and ask for the application form.
- Complete all the details and attach the KYC documents required by the bank.
- The bank will then measure the weight and purity of your gold ornament to determine its loan amount.
- The bank will then state all the information regarding the interest rate, repayment tenure and other charges in the terms and condition document.
- After you've signed the document the bank will disburse the loan amount to your personal account instantly.
Also read this: Why is Gold Loan Demand scaling up in India?