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India is the second-largest consumer of gold in the world, and over the years Indians' enthusiasm for gold has never decreased. The World Gold Council is projected to stay idle with indigenous citizens for about 22,000 tonnes of gold. This has encouraged the government, banks, and NBFCs to actively push gold loans in India and transform them into financial assets.
Gold loans are secured credits that commit your gold items to acquire money for your financial requirements and crises. Compared to personal and credit card credits, this is a cheaper loan. Here is all you need to know about gold loans and how to get the best prices.
Gold Loan Application
The first step in choosing a loan amount is to apply for a lender's gold loan. There are a number of gold loan companies providing gold loans. Prior to applying for it, you should see and evaluate different gold lenders, such as cheap interest rates, various gold loan schemes, sufficient loan-to-value ratios, flexible tenure, etc. You should select one that matches your requirements.
Gold Submission
You will have to submit your gold jewellery or coins marked as security or collateral by the gold loan companies. After completing the Gold Loan application form either by way of the online or offline procedure. The most crucial thing to acquire a gold loan is to choose your gold loan scheme. The gold submission cannot be done online. You must remember, you need to visit your individual lender's branch personally to present your gold. You can perform this step in no other manner.
Gold Evaluation
The third stage is the gold assessment, now that you have committed your gold to your lender. The first thing that a lender performs is to compute the total worth of its gold when you present your gold jewellery. This value is established by the lender's own internal assessment procedure by the current market value of the gold. This assessment will determine the amount of loan you obtain against your gold jewellery. The bigger your gold worth, the greater the amount your loan will receive. You can obtain up to 90 percent of the gold value as the loan amount, as we have already said.
There is another approach by utilizing the Gold Loan Eligibility Calculator to determine how much money is eligible for the Gold Loan. Just provide certain information, such as the weight and purity of gold, and the maximum amount of gold available.
Documentation Process
The following phase is the documentation once the evaluation procedure has been finished and a definite set of documents must be submitted to the lender. Unlike the tedious paperwork procedure of other loans, one of the primary benefits of a gold loan is low documentation. The needed documentation may be viewed below.
- Two Recent passport-sized Photographs
- Identify Proof – Aadhar Card/ PAN Card/ Driving Licence/ Voter ID Card
- Address Proof – Passport/ Electricity Bill/ Telephone Bill/ Aadhar Card
- Receipt of your Gold (if asked by the lender)
Eligibility, Authentication, and Disbursal
The lender will verify your eligibility when all the aforementioned procedures are completed. Every lender has a number of other requirements which must be met by the applicant. These requirements usually relate to the age of the applicant and to the pure ornamentation of gold. A low-CIBIL candidate can also apply for a Gold Loan without any fear of refusal. The lender will confirm all your supplied information as well as the legitimacy of your application papers. The loan amount will be sent into your account after the authentication procedure is completed.
These are the phases in the entire process of gold loans. You will not have difficulties applying for a gold loan when you know them.