GOLD LOAN IN COVID-19

  • Public
By DialaBank 421 days ago

image

WHAT IS A GOLD LOAN?


As the name suggests, the Gold loan is a loan that you can take from the bank, or money lender, or any other financial institution, and you have to give your gold articles to them as a security. A gold loan is a secured loan; you need to give your gold articles as collateral, and once you have completed the loan repayment tenure, you will get your gold back in no time.

GOLD LOAN IN COVID-19 PANDEMIC: -

No doubt, the pandemic of COVID-19 has affected each and every section of society, whether prominent business people or small workers. Due to the lockdown, most people are not able to go out and earn. The condition has become so much worse that they don't even have money to fulfill their basic needs. Seeing this condition of the country is disheartening. Therefore, in case of any financial instability or an emergency, a person can apply for a gold loan, if he is in need of some money. The gold that has been lying in your locker for a long time will finally help you in your tough time. Apart from functioning as jewelry, your gold will now allow you to fulfill your financial needs.

You don't have to do much; just take the gold articles that you need to give as security, take the required documents like your identity proof, address proof, and submit them in the bank or to the lender. The lender will check the quality, purity of your gold, and weight. After the successful verification of the gold, and the test of its purity, the amount of money will be given to you. Now you can enjoy the money and use it for your basic needs in the time of COVID-19 for yourself and your family.

After that, you need to repay the loan to the bank or the moneylender. You will need to pay back the amount in equated monthly installments ( EMIs) with the interest rate. You can easily calculate the amount of EMI that you will have to pay every month after taking the loan with the help of a Gold Loan Calculator. These are readily available online on the websites of different banks. You just need to fill in the values like the amount of loan, the interest rate, etc., and you will get the amount that you will have to pay every month after the acceptance of your Gold Loan.

BENEFITS OF A GOLD LOAN: -

A Gold Loan is better than the other unsecured loans. The following reasons are in support of the above statement: -

1) Minimal Documentation: -
As a gold loan is a secured loan, you give your gold articles to the bank as security. Therefore not many of the documents are required. You need to have the basic documents like your Identity Proof, Address Proof like your Aadhar Card, PAN Card, Driving License, etc.

2) No Income Proof Needed: - As mentioned above, the gold loans are secured against the gold you are giving. You are not required to get income proof. The lender will have your gold as collateral, so they don't need any income proof.

3)Faster Processing: - The whole procedure of applying for a gold loan is effortless and easy. After checking the quality of your gold, you can get the desired amount of money as a loan in a few minutes. The one thing that is the most important in a gold loan is the purity of the gold; it should be between 18 karat- 22 karat. Once the purity of the gold is checked, you can get a loan of up to 75% of the market value of the gold. In IIFL Gold Loan, you can get the loan in a quick time, with no processing fee.

4) A credit score is not required: - As the other loans put an excellent credit score at one of the criteria for the approval of the loan, a gold loan doesn't need that. In a gold loan, the one thing that matters is the purity of the gold.