How to Use Your Gold for a Gold Loan?
Gold has a special place in the hearts of Indians. In reality, India is one of the world’s major gold importers. When you own gold jewellery, you receive a certain sense of financial stability. You are aware that in the event of a financial emergency, you can sell your gold jewellery to fulfil your responsibilities. But why sell gold when you can borrow against it? Find out how you can use your gold jewellery to get quick gold loan finance.
What is a Gold Loan?
Gold loan, as the name implies, allows you to acquire money by pledging your gold jewellery. In other words, you will maintain your gold jewellery with the lender and will be able to borrow money against it. You can repay the amount of the loan and get your gold back from the lender. However, you are not permitted to borrow the whole value of the gold you pledge. Lenders typically grant loans that are a specific per cent of the value of the pledged gold. A loan against gold, on the other hand, makes a lot of sense if you have urgent financial needs to meet or simply want to take advantage of an investment opportunity. You can easily finance gold loans from reputable financial institutions.
How Much Amount You Can Borrow?
A loan against gold ornaments is a short-term loan with a maximum length of one year. Lenders provide gold loans per gram to make it easier for borrowers. Every lender has its own set of minimum and maximum borrowing restrictions. Most lenders like NBFCs provide gold loans under various schemes, each with different terms and conditions including the rate of interest, loan amount, tenure, and so on.
Eligibility for a Gold Loan
A loan against gold, unlike other kinds of loans, has minimum eligibility requirements. You must be at least 18 years old and be the rightful owner of the ornaments. With these loans, banks are not required to evaluate other details like your income, age, credit score, and so on because you are holding your jewellery as collateral against the loan amount. If a borrower is unable to repay the loan, the lender will be able to recover their money by selling off the gold jewellery.
Getting a Quick Loan against Gold Jewellery
There are various occasions in life when you need immediate funds to meet urgent requirements. If you do have gold jewellery, an instant gold loan can be a fantastic option. A loan against gold is one of the easiest ways to acquire additional funds to meet your emergency needs. With attractive gold loan interest rates, quick approval, and minimal documents, availing of a gold loan has become easier than ever.
Now that you have understood how you can use your gold assets to overcome liquidity shortages, you can utilise them in times of need. However, always ensure that you choose a reputed and authorised lender.