Gold loan per gram is a type of loan in which gold is used as collateral to secure the loan. The gold jewellery is kept with the lender as security, and the loan amount is given to the borrower based on the value of the gold.
The interest rate on the gold loan per gram is usually higher than other types of loans, such as personal loans or home loans. But, it provides quick access to funds when needed.
Procedure of availing a gold loan
To avail of a gold loan, you can approach any bank or financial institution that offers this facility. You will need to submit your gold jewellery and some evaluation documents. Once the evaluation is done, you will be given the loan amount based on the value of your gold. The lender will decide the interest rate and repayment tenure.
It is important to remember that a gold loan is a secured loan, and failure to repay the loan amount can lead to the loss of your gold jewellery. Therefore, it is important to consider your repayment ability before availing of this loan.
When you approach a gold loan provider for a gold loan, they will assess the value of your gold and then offer you a loan amount based on that value. The loan amount that you receive is typically a percentage of the gold’s value. For example, if you have gold worth Rs 1 lakh, the gold loan provider may offer you a loan of Rs 80,000.
The interest rate on gold loans is usually lower than on personal and credit card debt. Gold loans also have a shorter tenure than other types of loans, making them easier to repay.
Once you have received the gold loan, you can use the money for any purpose you need. There are no restrictions on how you can use the loan amount. You can use it to fund your business, pay for medical emergencies, take a vacation, or do anything else you need.
How to get a gold loan?
Many people have this question about how to get gold loan. Banks and other financial institutions offer this facility to their customers. The process is simple and quick. Let us see how to get a gold loan in detail:
- The first step is to approach the bank or the financial institution from which you wish to avail the loan.
- The next step is filling out an application form providing all the necessary details like name, contact information, address, etc.
- The third step is to submit certain documents like KYC documents, proof of income, etc., for verification purposes.
- Once all the formalities are completed, you will be required to deposit your gold at the bank or the financial institution. The loan amount will be disbursed based on the weight and purity of your gold.
- You will have to repay the loan amount and interest within the stipulated period. The gold will be returned to you once the loan is repaid.
Thus, these are the steps involved in availing a gold loan. Do remember to repay the loan on time to avoid any penalties.
How beneficial is a gold loan?
Gold loans are attractive for many people as they offer several benefits. Some of the key benefits of gold loans are as follows:
- Gold loans are quick and easy to obtain. The process is straightforward.
- Gold loans can be availed for various purposes, including meeting medical expenses, funding education, business expansion, etc.
- The interest rates on gold loans are relatively lower than other types of loans.
- No need to pledge any other asset as collateral when availing of a gold loan.
- Gold loans offer flexible repayment options. You can choose to repay the loan amount in EMIs or lump sum payments, whichever is convenient for you.
Thus, these are some of the key benefits of gold loans. If you are looking for quick and easy financing, a gold loan would be a good option.
Gold loan per gram is a popular option for people who need quick access to funds. It is also convenient as you do not have to sell your gold to get the loan amount. You can use the gold loan for any purpose, such as funding your business, paying for medical emergencies, or taking a vacation. Just make sure to repay the loan on time to avoid any penalties.
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