Generally, a customer opts for a gold loan in Vadodara due to the convenience it offers, such as instant approval and no paperwork. When a customer gets a gold loan, he/she has to give his/her gold to the bank and get it backed by the loan amount. This provides customers a short-term loan at relatively low interest rates and avoids the involvement of goldsmiths in the loan process. The money is loaned against gold and can be returned to the gold loan companies in Vadodara as per the repayment period.
The gold loan fee ranges from 0.5% to 1%. This fee applies only to charges in the form of interest. This also depends on the amount of gold pledged. In terms of valuation, gold prices have been going down lately, and they’ve been declining since 2014.
Why Do People Take a Gold Loan?
Taking a gold loan is an easy and convenient option for anyone with restricted funds. With gold loans, one doesn’t need to worry about buying them now and keeping them safe in one’s house. With gold loans, one can borrow as and when the money is required. There are plenty of options that can be explored when it comes to the type of gold ornaments or jewellery that can be pledged for borrowing.
However, one should be aware that there are risks associated with taking a gold loan. As this is a secured loan, one must meet the entire amount that he has borrowed. Once the bank grants the gold loan, it must be paid back by the borrower on a fixed schedule. If the borrower fails to repay the amount, the bank will take possession of the pledged gold.
How to Apply for a Gold Loan?
For a gold loan to be sanctioned,
- A customer’s loan documents must be authenticated by both the lender’s staff and the branch’s staff.
- The gold and its location are also verified before the loan is approved and disbursed. Most gold lenders charge a minimum down payment of ₹3,000.
- Gold loans are secured loans, and the borrower has to make sure that he or she can repay the loan. To ascertain the repayment capability of the customer, gold lenders ask for a minimum monthly commitment of ₹10,000.
However, there is no cap on the amount that can be repaid per month. It is highly advisable to make a repayment plan that is convenient for the borrower.
Below are some of the benefits of taking gold loans in Vadodara.
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