GOLD LOAN FEATURES ARE BETTER THAN OTHERS

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A Manappuram Gold Loan is a reliable option to obtain in times of emergencies as it is instantly availed in less than an hour.

DOCUMENTS REQUIRED FOR A GOLD LOAN -

Following are the documents that are required for a gold loan -

1. Two passport size photographs.
2. Proof of identity such as Driving License/ PAN Card/ Passport Copy/ Voter ID Card/ Aadhaar Card/  Ration Card. Any one of these documents needs to be submitted.
3. Address proof such as Driving License/ Ration Card/ Aadhar Card/ Passport Copy/ registered lease agreement which is not older than three months utility bills.
4. While opting for an agriculture loan of more than Rs. 1 lakh, proof of agricultural land has to submit.

WHY IS A GOLD LOAN BETTER THAN ANY OTHER LOAN?

The following are some key points of a gold loan over any other loan -

Lower interest rates- The banks offer the best interest rates for their customers. Some customers also get different discount rates. The loan’s value is determined from the purity test of gold and is estimated from the current market value of gold as Gold Loan per Gram.

No processing fee- There is either no processing fee or as low as 1.50% on the loan amount.

Minimal documentation- As a gold loan is a secured loan and you provide gold to the bank as collateral, there is not much documentation required. You only need to submit the necessary documents like your identity proof and address proof.

Flexible repayment tenures and high LTV ratio- Another benefit of a gold loan is that it comes with flexible repayment tenures. The minimum term for the loan repayment is six months, and the maximum tenure for the repayment of the loan is 24 months. Also, you can get a high maximum loan to value ratio of 75% of the calculated weight of gold.

DIFFERENT TYPES OF LOAN REPAYMENT SCHEMES -

The repayment of the gold loan can be made through different schemes -

Overdraft repayment scheme- This repayment scheme is availed chiefly for a colossal amount of debt where the interest is only charged on the amount disbursed by an individual.

Bullet repayment schemes- The repayment scheme involves the repayment of the principal amount towards the end while the interest is charged monthly.

Equated monthly instalments- The total loan amount with interest rate is divided into equal amount which has to repay every month upto the end of the loan term. The EMI option is quite popular amongst borrowers due to its convenience.

Post-dated cheques- In this repayment, one had to submit a future date check to the bank’s nearest branch.

Standing Instruction or Debit mandate- In these repayments, an instruction is given to the bank to make monthly payments from the borrower's bank account or different bank account on the indicated amount.

Interest-only repayment- Only interest is charged monthly, whereas the principal amount is due at the end of the loan term. The principal amount is here levied until the loan tenure is completed.

Perks of Gold Loan-

1. It takes a short time to process.
2. It offers reduced loan rates beginning at 7.0% per year.
3. It has an LTV ratio of 70%.
4. It has a long duration of 36 months.
5. The loan amount is limited to Rs 20 lakhs.
6. When applying for a loan, the applicant must be between the ages of 21 and 75.
7. Income verification is not necessary.
8. This loan can be availed with a low or bad credit score as well.

Gold's Security

When you deposit the gold in the bank, it is identified by your unique application number, which is not stated in the Approval letter. The gold is subsequently put in a bag and stored in bank lockers. Bank lockers can be found within the Vault. No one other than a bank employee is permitted to access the Vault. The Vault contains a number of lockers. Each locker is locked with a unique key that belongs to Bank authorities. The bank is fully responsible for preserving your belongings upto the end of the loan term.

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