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The gold loan market has gained quite a momentum in the past five years. The stock market performance of some significant gold financing companies has been encouraging during recent years and are expected to grow even higher in the foreseeable future. The tremendous success of the gold loan market speaks for itself. The growing trust, reliability and satisfaction of customers is expected to drag the success figures off the charts in the coming years. Also Read: Collagen Peptides What are the gold loans? Gold loans fall under the category of secured loans where the borrower has to pledge gold as collateral against the sanctioned loan amount. The upper bar of approved cash for gold amount is set after evaluating the quality and net value of gold pledged by the individual on a per gram basis, keeping in mind the loan to value ratio as set by the gold loan lender. Companies like Muthoot Fincorp offers gold loan upto 100% of Loan to Value (LTV) amount. There are some features offered by gold loans which help them to stand out among the multiple options in the market. Supple repayment options Multiple gold loan lenders offer flexible repayment options keeping in mind the diversity of income levels of various borrowers. There are websites which can show you a direct comparison between features of different cash for gold schemes. The borrower has the liberty to choose the gold loan scheme that best suits his or her financial capability. You can also use an online gold loan EMI calculator to evaluate the exact amount of equated monthly instalments that you are supposed to pay, to give you a better idea about how to deal with your finances in advance. Get a gold loan regardless of your CIBIL score CIBIL score or credit score is a three-digit score, ranging from 300-900, assigned to an individual based on his or her last six months of financial statistics. Better the CIBIL score of the individual, higher are the chances of him or her being financially stable and hence preferred by most of the loan lenders. Personal loans and some other types of loans are pretty strict with the applicant’s CIBIL score and therefore are only sanctioned to the one with a good CIBIL score. Loan against gold, on the other hand, is sanctioned, even for applicants with a poor CIBIL score since gold is already taken as collateral against the loan for security. You can in-fact improve your credit score with Gold Loans if a good payment behavior is followed throughout the tenure. Budget-friendly interest rates There are multiple gold loan lenders offering loans at different rates of interest. The rates of interest usually varies from lender to. The interest of gold loans is flexible and totally depends on the amount and tenure you opt for. Hence, going for a gold loan can save some of your bucks in paying the interest. There are websites which can give you a direct comparison between interest rates charged by various lenders to help you shortlist the one that best suits your finances. However, we would like you to choose Muthoot Fincorp over others as they offer best in class service and they have a national presence with more than 3500 branches. Who can apply for a gold loan? Gold loans are probably the easiest to get in the loan market. Loan against gold has bare minimum restrictions that we are going to talk about soon. Gold loans are approved with the minimum requirement of documents and proof. There is also no need to submit any income proof or income tax returns to avail loan against gold. It makes the disbursement process very quick, making it a perfect option to go for to cater to your financial emergencies. Hence, anyone can apply for Gold Loans in India. Age of the applicant The gold loan applicant should be a citizen of India, and the age of the individual should be 18 or above and below 75 years old. It enables almost anyone to opt for the cash for the gold option without having to worry about the rejection of the gold loan. Purity of gold There is a specific criterion set for the gold to be pledged by the borrower against the gold loan. Gold in its purest form is in the liquid state and is of 24 carats. To make it serve its intended purpose, it is usually alloyed with other metal in specific proportions to give it a solid shape. Hence, the gold variants found in the market are generally of 14 carats, 18 carats, 20 carats and 22 carats. Gold loan lenders only accept gold under the purity range of 18 carats to 22 carats. Hence, if you possess gold under the mentioned purity range of 18 carats to 22 carats, you can easily use it to get a loan against gold. Hence any individual confirming the aforementioned criteria can easily apply for a gold loan. Also Read: Hydrolyzed Collagen
In India, gold has always been a popular asset class. Despite the emergence of a variety of investment options, gold is still going strong....