A gold loan is a secured loan which you will get by pledging the gold jewellery as collateral with the bank. The lender will, in return, offer you 75%of the amount of the gold pledged. You can repay the gold loan through monthly expenses, after which you will get your pledged gold back. Also, know that a gold loan is the most preferred choice because it does not demand income proof, does not consider credit history, and once the documents get verified, and the lender approves everything, you will get the loan amount credited to your bank account. You can also get a gold loan in Hyderabad and other places with the help of an online loan service provider.
If you need money to meet your working capital requirements, pay for your child’s education, fund a wedding, go on a family vacation, etc., a gold loan is the right choice for you. In short, when there is a sudden need for cash, a gold loan is the ideal option. Moreover, a lot of private, public, and NBFCs offer gold loans at affordable interest rates. To know more about the gold loan in detail, the following points will help you to know more:
- How does it work- Just like the other secured loans, gold loans work the same. After filling the form regarding the personal details online, the representative will give you a callback. The lender will demand some documents like passport, driver’s license, aadhaar card, electricity bills, phone bills, along with one passport size photograph. Also, he will look at the gold provided by you. After verifying the documents, the lender will make the agreement signed by you and will sanction you the loan.
- What type of gold can be pledged- The purity of the gold will determine the loan amount you will get. The higher the carat of the gold, the higher will be the amount allotted as a loan.
- Gold loan repayment options- Mostly, all the lenders offer many options which are easy and convenient. You can select the option depending upon your choice. The options are upfront interest, bullet repayment, regular EMIs, overdraft facility.
- Repayment tenure- Usually, it is a short-term loan that starts for 6 months till 12 months. Some gold loans have been near 24 months as well. Depending upon your needs, you can select one.
- Interest rate- Interest rate usually ranges between 11-15%. It will vary on different private banks and non-banking financial institutions.
- Charges or fees- A gold loan does not require fees or charges or processing fees. But it does include additional repayment charges and valuation fees that you might incur. Make sure to look for the additional charges before choosing the loan service provider.
So above are some points of the points you should about the gold loan. To get the best gold loan in Hyderabad or other places, you can contact ‘Ruptok’, which provides the best gold loan services in many places. Just fill in the details, and they will call you back.