How a gold loan works for you // Safalaya - Edu-Social Network cum Personal Learning Network

Let us understand what is gold loan and its features

Before you know how Gold Loan in India works, it is important to know exactly what a gold loan is. A gold loan is nothing but a secured loan with which you can choose the required loan amount by comparing your ornaments with gold coins at affordable interest rates. In times of emergency, there are many loan options available, but because of low-interest rates, a gold loan may be the best option for you.

You can check out some of the amazing features of the Gold Loan Center mentioned below.

ICICI gold loan interest rate is lower so you don't have to worry about payments as the EMI price will go down a lot. The average interest rate ranges from 10% to 16% per annum. This can be very low if you already have a smooth working relationship with the lender. You can get the required loan amount within a day after the full process. You just need to submit your gold jewelry to the lender, and after the entire verification process has been completed, you will receive the loan amount in your account. You can choose a refund period depending on your payment ability and ease of use. The maximum duration of stay can be 84 months (7 years) and can be as little as 12 months.

A gold loan will help you get a higher loan rate that can meet all of your financial needs. You can get a loan amount of up to 90% and a minimum of 65% of your total gold. It means that if the total amount of your gold is INR 20 lakh, you can get a higher loan amount of INR 18 lakh. At least it would be INR 13 lakh.

What Are the Steps to Getting a Gold Loan?

If we were to talk about how Gold Loan works, it would be good to know the whole process of Gold Loan. There are six main steps involved in gold loans - Gold Loan Application, Gold Distribution, Testing, Documentation, Verification, and Payment. To learn more about these steps, you can see below.

1. Application for a gold loan

The first and foremost step in determining the value of a loan is to apply for a Gold Loan from a lender. There are several banks and financial institutions that offer gold loans in India. Before applying for it, you should look at and compare the various lenders.

The application can be made in two ways - online and offline. For the offline gold loan, you will need to go to your nearest lender branch and fill out an application form and for the online process, you just need to go to the lender's official website and apply from there only.

2. Submission of Gold

Once you are done with the application you then need to submit your gold jewelry. Having gold jewelry is the most important thing to get a gold loan. You have to keep in mind that gold shipping cannot be done online. By delivering your gold, you will need to physically visit the lender's branch. There is no other way to use this step.

3. Evaluation of your gold articles

Now that you have promised your gold to your lender, the third step is to test the gold. When adding your gold jewelry, the first thing a lender does is calculate the total value of your gold. This amount will be determined by the current market value of gold through an in-house inspection process for the lender. This screening process will determine how much you will get for a loan compared to your gold jewelry. You can get a high 90% value of gold as a loan amount.

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