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" Why lock your gold in the cupboard?
Unlock its value with a gold loan. "

Gold Loan

What is a gold loan?

You can avail a loan from a bank or an NBFC by pledging your gold. You can pledge your gold coins or gold jewelry and avail a gold loan from a bank. The gold has to be of purity 18-24 carats.

You can pledge only gold jewelry to avail a gold loan from an NBFC.

The amount of loan you avail

In India tradition demands that gold be collected and accumulated in the family. This means you can easily avail a gold loan with this family gold. You get an LTV (Loan to value) ratio of 75%.You get INR 75 for every INR 100 you pledge.

Why avail Gold Loan?
Low Interest

Low Interest

Gold and gold jewelry as collateral, mean lower Interest rates compared to a personal loan. Processing time is very quick.

No Credit History

No Credit History

Banks do not check for income and salary proof. Unemployed persons can also avail a gold loan. Banks do not check credit history.

High Margin

High Margin

You get up to 75% of the value of the gold or gold jewelry, pledged for the loan. Speedy sanctioning of loans.

Easy Repayment

Easy Repayment

You pay only the interest on the loan amount borrowed. Principal repaid at the end of the tenure.

Key factors to consider for Gold Loan

Rural areas

If you reside in a rural area you can easily avail a gold loan from an NBFC (Non Banking Financial Company).

The documentation is much faster if you avail a gold loan from an NBFC rather than a gold loan from a bank.

Remember: The NBFC charges you a higher rate of interest on the gold loan than a bank. The interest charged by the NBFC could be around 22-24%.

Another benefit you get from availing a gold loan from an NBFC, is you have to only pay the interest amounts regularly on the gold loan.

You pay the principal (Borrowed amount) back, at the end of the term (tenure of the gold loan) and reclaim your pledged gold jewelry.

There are no processing charges and pre payment penalty, if you avail a gold loan from an NBFC.

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