Why Gold Loan is getting very popular and its demand Growing Fast in India ?

Compare Gold Loan Interest rates, Apply Gold Loan Online, Gold Loan Bazaar

Why Gold Loan is getting very popular and its demand Growing Fast in India ?

Gold Loans in India are getting very popular and its demand is growing day by day at a very fast pace. This is only because of the key feature they offer like Low-Interest Rate, Instant Finance and Convenience associated with it. No one has to sell its gold jewellery now for liquidity, one can easily do so by pledging their gold ornaments to avail Loan.

Gold Loans in India are gaining popularity mainly because of:

  • Lower Interest Rate:

Being a Collateral/Secured Loan, One of the main and supreme advantages of Gold Loan is that these are offered at very Lowest Interest Rates. As the risk factor assumed by the lender is less, the benefit for such is passed on to the borrower by the lender. Thus, Banks and NBFC provides Gold Loans at Cheaper Interest rates. Normally Gold loans are provided at  10 – 16 % per annum which is very low as compared to Personal Loans which are normally available at 15 – 28 % per annum. Bank also offers Concessional Interest Rates for loans obtained for Agriculture purposes and gold loans availed by women.

  • Less Documentation:

Unlike other unsecured loans like personal loan, gold loans do not require a lot of documents. You can avail Gold Loans with very Minimum documentation. A Valid Address and Identity proof and passport size photographs are just enough in order to obtain a Gold Loan. The ID and Address proof documents include Ration Card, Voter ID card, Driving License, Passport or Aadhar Card among others. There is no need to present Gold Ornaments Purchase Bill or proof of ownership of Gold ornaments. But the borrower must keep in mind that pledging Stolen/Theft Jewellery to obtain a loan is a punishable offense under IPC and engaging in such activities can end you up in Jail.

  • No Income Proof Required:

Bank / NBFC doesn’t demand ITR or Income certificate showing your Income or salary to avail a Gold Loan. Most of the Banks/NBFC doesn’t require or checks the Credit history of the Borrower. Even an unemployed individual or person having no or poor credit history can avail Gold Loan.

  • Flexible Loan Duration and Easy Repayment Options:

Gold loans are the most flexible loans among both secured and unsecured loan categories like Home Loan, Personal Loan, Small Business Loans etc. Most of the Banks/NBFC offer flexible loan duration’s ranging from 7 days and up to 48 months. This allows and entitles the borrower to repay the loan as per his/her own convenience. Unlike other loans, Banks /NBFC charges very less to no penalty or charges for prepayment or foreclosure of your Loan.

  • No Guarantor or Co applicant Required:

Unlike other Loans, be it secured or unsecured like a small business loan or personal loan, you are not required to present any Guarantor or Co-Applicant in order to avail the Gold loan. You can just visit the bank carrying your Gold ornaments against which you require a loan, your address and identity proofs. Authorized Valuer or Appraiser appointed by the lender will evaluate the purity of your Gold ornaments and will sanction and disburse loan immediately on its basis.

  • Instant Liquidity and Quicker Processing:

Gold loan gives an opportunity for people to liquefy their Gold Jewellery and use it for financing purposes. If you require money for Kids Education or Medical Emergency or Business operations or to fulfill any other financial need, you just require your gold jewellery. So instead of keeping the gold idle at home or locker, Loan against gold is the best option

  • Less Time Consuming process:

 Availing Gold Loan is a very less Time-Consuming process. All it takes around 30 minutes to a few hours for Gold Loan processing and final disbursement. Also, Save time by Comparing Gold Loans and Apply online Instantly at Gold Loan Bazaar.

 

Some of the Popular Gold Loans In India are:-

  • ICICI Bank Gold Loan
  • HDFC Bank Gold Loan
  • SBI Gold Loan
  • Muthoot Finance Gold Loan
  • IIFL Gold Loan

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