How to Use a gold loan to raise money
Do you want to make the most of gold loan investments? Rupeek got you covered.
Gold is one of the most valuable metals available there. Gold gets looked upon as a symbol of Lakshmi in India. It is the goddess of prosperity and wealth. So, gold has a significant value in Indian tradition and ceremonies.
For the past several years, gold evolved from a precious jewel to a valuable investment option. Besides, gold has been helpful for people in times of need. Most people pledge for gold to borrow money in times of financial crisis. A gold loan is a modern way of monetizing gold assets within the regulations present by the government.
What is a gold loan?
A gold loan is a secured loan that gets offered by banks and non-banking institutions. Rupeek is one of the dependable organizations that give a gold loan at a reasonable rate of interest.
You get a loan based on a certain percent of the gold pledged to the lender. The loan gets backed by your valuable gold assets, so there is no risk of default to the lender. It is a secured loan granted by several banks and NBFCs.
As long as the reason is legit, you don’t have restrictions on the way to spend the loan amount. Hence, the borrower can use the loan for his personal and business requirements.
How does a gold loan work?
The processing and approval cycle for gold loans is a bit fast. Unlike other unsecured loans, you need to pledge for your assets to secure a gold loan. Rupeek claims that you need to have a minimum of eighteen-carat gold.
Besides, you can pledge for gold in any form. It can be a gold chain, bracelet, or coin. NBFCs and banks that evaluate gold check its purity and amount. A bank has a gold evaluator who estimates the purity of your pledged gold.
A certain percentage of the gold’s value gets sanctioned as a loan by the lender. If you want to opt for a gold loan, check the type of gold accepted by the bank or NBFC. For instance, some lenders may accept only gold jewelry rather than bars or coins. A borrower has to repay the gold loan amount as mentioned in the agreement. As you repay the principal and interest rate, you get back your pledged asset from Rupeek.
Who can get a gold loan approval?
As far as the gold loan is concerned, there are no strict eligibility criteria. Nevertheless, you need to fulfill the requirement as follows.
- You should be an Indian resident. Corporations, minors, and NRIs don’t qualify for gold loans.
- Present your address and identity proof as per the lender’s requirements.
- Present your bank statements, salary slips, and ITR as a statement of proof.
What is the interest rate for a gold loan?
A gold loan is a secured loan. Unlike an unsecured loan, a gold loan has a lower interest rate. A gold loan EMI calculator can be used to calculate all the essential values related to the loan one is borrowing against their gold.
Why Choose a Gold Loan?
It provides you financial freedom, a smart decision of possessing gold can bring high returns in the future. Especially in the bad times, when finance becomes your first nuisance to get anything done, only the gold can take you out.
Conclusion
In the above articles, we have shared lots of information related to a gold loan, starting from the introduction to all the purposes. Use above discussed tips while applying for a loan against gold. For information related to the gold loan, contact Rupeek today.