Gold has been an asset which we, Indians have held valuable for over generations and is something every household takes pride to possess. In this era, the rural folk in India are still believed to have possession of almost 60 percent of physical gold in form of jewels. The emotion that people in our country, mostly Indians, which we associate with gold is overwhelming.
Gold loans are provided by almost all financial institutions these days. There is certain eligibility you need to fulfill before applying for this loan, the same as all other kinds of loans. Any person can apply for a gold loan both in online and offline modes, but the ongoing pandemic has made things a bit rough for the offline mode.
So, these days instead of keeping physical gold in our home, we can make a gold loan application. The lender checks the quality of the gold and based on the inspection, an amount equivalent to around 80 percent of the value of gold pledged is sanctioned.
One of the biggest advantages gold loans offer is that there is no need to have a good CIBIL score. Anyone with a low CIBIL score can also apply, and also that it being a secure loan doesn’t create pressure as a part of the banks. The bank can provide the money on the live gold rates and then they can sell the gold in the open market and recover the money later. Apart from this goal loans have many advantages such as faster processing with minimal documentation, low-interest rate as compared to a personal loan, no processing fees, income proof isn’t required. Also, if one can attach another asset as collateral, gold loan interest rates can be lowered further.
Only a resident of India can apply for a Gold loan with an eligibility of 18 years. A self-occupied property has to be registered in the name of the person and the gold should be in the possession and ownership of the same person applying for the gold loan. Gold ranging from 18 to 22 carats can be pledged as per RBI instructions.
Along with the above eligibility criteria, the person should have proof of certain documents like Aadhar Card/ PAN Card/Voter ID card/Driving license along with proof of residence.
Keeping in mind the gold loan need of middle-class families in India, have made financial institutions simplify the whole process. Almost all the major banks and financial institutions like IndusInd bank these days have taken IndusInd Bank gold loan applications to their online portals thus simplifying the process of procuring gold loans sitting at home.
One of the major concerns for people thinking of applying for a Gold loan is the Gold Rate Today, and whether they can benefit the most from it for the particular day. In this regard, to be honest, gold prices aren’t that volatile and prices do not fluctuate by a margin. Today, the gold rate is approximately 49,175.00 Indian Rupee for 10g GOLD of 24k 99.5 percent purity. So, there isn’t any right to apply for a gold loan and should be applied for as per requirement.
Conclusion
Lastly, despite any anomalies or rumors, we need to understand that gold loans are safe and the banks give us the best interest rates. So, if you are in urgent need of a loan, a gold loan is one of the best choices and you can directly apply for it after checking the parameters associated with it. It is one of the easiest ways which is now available in online mode. It not only saves the time and energy of the customers but also reduces the workload burden of the banks which enable them to provide gold loan at a concessional rate to their customers.