Gold Loan and its Uses

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GOLD LOAN IN INDIA: -

We all are aware of the high rising prices of gold and in our country, gold is one of the top assets to invest in. This is because the fluctuating value of  gold can be really helpful to its buyers.  The gold rate today is really high. The second largest consumer of gold in the whole of the world is India. This is because the citizens in our country have attached cultural values to the gold. It is used in religious ceremonies, and in marriages too. It was also revealed in an interview that the Indian households have accumulated around 25,000 tonnes of gold. Therefore, most people can apply for a gold loan and make use of the gold in times of financial instability. Different banks and the companies have reported a large demand for gold loans during the times of  the coronavirus pandemic.

HOW CAN A BORROWER GET A GOLD LOAN IN INDIA?

If a person wants to apply for a gold loan in India, he can opt for one of the following options: -

  1. Visit the bank to get your loan evaluated- The first option is to visit the nearest branch of the bank in which you want to apply for a gold loan. You need to take the gold jewellery or the articles that you wish to pledge along with the documents (KYC). The bank or the money lender will check and verify your documents. The bank will also measure the purity of your gold and also the price of your gold. The interest rate on a gold loan ranges from 7.50% to 12%.

  2. Request for the doorstep evaluation of your gold- The second option that you can avail is that you can request to the bank for the doorstep facilities. Some of the banks and the Non-Banking Financial Institutions offer this facility. When you opt for this method, the bank will send a company executive to your home and he will check your gold. He will evaluate the gold jewellery and then, the amount of credit will be decided. However, to ensure safety, you can always check the credentials of the person who is scheduled to visit your home in advance.

  3. Apply online for a gold loan- A person can also apply for a gold loan online. It can be done through a digital route. In this method, the Non-Banking Financing Companies or the banks provide the option of applying online. It can be done from the website of the bank or an app based digital service. The customers can compare the rate of interest and the other features and then, select the best which is available. If you want to apply for a Muthoot Finance gold loan, you can apply online too.

USES OF A GOLD LOAN: -

A gold loan can be used in a lot of ways. You just need to provide the basic documents and the gold, and after that, the money will be disbursed in your bank account in a few minutes. The amount of loan can be used in a lot of ways: -

  1. Financial emergency- During these times of COVID-19, most of the people are facing the financial emergency as due to the lockdown, a lot of people have lost their jobs and have no source of income. They can use their gold and apply for a gold loan to fulfill the basic needs of their family.

  2. Medical emergency- COVID-19 has invited a lot of medical emergencies and mostly everyone is facing them. Not everyone has a stable financial condition to cope up with them. They can also apply for a gold loan and can use the amount for the treatments. 

  3. Marriage- When a person does not have any more funds for the marriage or if the marriage has crossed the budget line, then he can apply for a gold loan. By using some of the gold, all the financial problems can be solved easily.

  4. Education- For educational purposes, a gold loan can also be availed.

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