A gold loan helps in achieving the requirement of finance through the precious asset that otherwise just lies under the lock and key.
Indians have fascination for Gold and every one would have some or the other jewelry. However, accept for occasions most of the jewelry items mostly do not get used. One can take loan against the Gold by keeping it with a Gold Loan Company.
The loan process is short and the funds can be accessed the same day in most of the cases. All that one needs to do is walk into one of the branches of a Gold Loan Company with the gold, fill up a form. The Gold Loan Company will extend the loan post evaluating the purity of gold.
Get loan for up to 75% of the value of the gold being put as collateral.
No fixed EMI gets charged on the gold loan. The borrower has the flexibility to pay only the interest amount as well. He can choose to pay any part of the principal or can pay complete principal in one go as and when he wishes to get his gold released.
The Credit Score does not play role in processing of Gold Loan. This makes it a highly recommended option for people who do not have any credit history or have a low or bad credit history.
There are no eligibility criteria for Gold Loan. This means that a person even without any documented income proof can have access to funding through this instrument.
The borrower needs to furnish only the KYC (Know Your Customer) documents. This comprises of Identity proof and address proof.
While there are no variants in Gold Loan, however, the interest rate can vary depending upon the loan amount being extended against the value of gold.