Gold Loan Milta Kaise Hai? Understand The Meaning Of A Gold Loan
Before you apply for a gold loan from a lender, learn everything about it to make an informed decision. Read to find out all about the gold loan & its process here!
Indian households are known for their age-old wealth possession–gold! Previously, many ancestors would buy gold as an effective investment that also proved useful in times of need. It can be used as collateral to receive cash for your long or short-term needs, which are popularly known as gold loans.
What Is A Gold Loan?
A gold loan or a loan against gold is a secured loan taken by the borrowers looking to fulfill their short-term or long-term cash needs. Here, the borrower pledges their gold valuables as collateral. The loan approved can be up to 90% of the current market value of the gold pledged, as per the Reserve Bank of India. The gold applicable for pledging can range from 22-24 karat.
Gold Loan Milta Kaise Hai?
To apply for a gold mortgage loan, you first need to have your gold products, jewellery, coin, biscuits, or any other physical form of gold available. Then, select a Bank or an NBFC that offers loans against gold products in India. The interest rate can range between 7-29% per annum, depending upon your CIBIL score and creditworthiness. However, do not hesitate to opt for a trustworthy lender to get the best rates with the least hassle of documentation and processes.
The lender (a bank or an NBFC) will verify the purity of your gold either at your home or at a physical branch of the organization. Two types of documents required for a gold mortgage loan include identity proof and address proof. Typically, any available government or authorized documents like a PAN Card, Aadhar Card, valid Passport, or a Voter ID Card is acceptable.
Once both the gold and personal verification are cleared, you are eligible to receive the funds. However, failure to repay the loan may lead to the non-recovery of pledged gold. You can also apply for a gold loan online if the lender provides such services.
Apply For A Gold Loan With IIFL Finance
IIFL Finance is a leading gold loan lender. Since its inception, it has achieved a hassle-free experience for various gold loan borrowers. We have successfully provided gold mortgage loans to 6 million satisfied customers who received their funds easily.
IIFL offers competitive interest rates and flexible repayment terms for short-term gold loans. We also ensure the safety of your collateralized physical gold until the required amount has been repaid. There are absolutely no additional costs for the redemption of your gold mortgage. If you have any questions, you can contact our 24-hour customer service team via phone or live chat.
Getting a gold loan has never been easier! Walk into any of our branches pan India, fill out an e-KYC and get your loan approved in under 30 minutes.
Frequently Asked Question
Q.1: What is a gold loan?
Ans: A loan against your valuable gold in any physical form is known as a gold loan. In a gold loan, gold acts as collateral for your cash needs.
Q.2: How to get a gold loan?
Ans: The first step to getting a gold loan is to select a bank or NBFC that will act as your lender. After you choose your loan provider, all you need to do is get your gold and documents verified. You can receive up to 80% of the market value of the pledged gold.