Gold Loan For Medical Emergencies

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Legal organizations like Banks and Non-Banking Financial institutions have been providing loans against gold for more than a few decades and are helping millions in different ways through them. A gold loan is a secured loan, which means it requires collateral for the loan amount. The collateral in a gold loan is the gold article(s). The loan is granted for a certain period within which the borrower should’ve paid the loan amount with interest. The gold articles can be necklaces, chains, bangles, earrings, rings, bars, coins or any other legal gold ornament.

A lot happens in a lifetime, and one way or another, everybody in this world meets a medical crisis. And at those times, there aren’t enough funds to cover all the needs of a hospital or a patient and having gold then is a blessing. Using that gold , you can apply for a gold loan in a bank or NBFC and have the money in a few hours. Years ago, there was a need to travel miles and shred sweat to avail a gold loan, but now with technological advancements, you can take out the loan from practically any corner of the world. Banks and financial institutes are providing any and all assistance in taking out the loan. Bank Of India Gold Loan is one among them aiding the people in the best way they can. The bank provides online and offline gold loan services. The loan amount is up to 90% of the gold’s value to a maximum of one crore. The interest rate in the Bank of India starts from 7%, and the tenure is a minimum of 3 months and a maximum of 3 years. Millions of customers benefit from the bank’s gold loan scheme, and it often introduces festive schemes.

Merits of a Gold Loan 

A gold loan’s easy processing is a massive benefit during medical emergencies. Unlike a medical loan or personal loan, a gold loan has the most straightforward processing mainly because of its minimum documentation requirement and eligibility criteria. The eligibility criteria to avail of a gold loan are age requirement and id proof in addition to the collateral. Anyone between the age of 18 and 7 can apply for this loan. The proof of the individual’s id is required(must be an Indian citizen. The id can be a PAN card, voter id, Aadhar card, driving license, passport or any other government-authorized id. Income proof or employment proof is not required, and you don’t need hospital bills to avail of this loan for medical purposes. Another prime advantage of this loan is the unnecessity of the CIBIL score. The CIBIL score or credit score is a three-digit number that varies from 300 to 900 and is extremely important for most loans. But a gold loan doesn’t need this, and therefore, even if you have a poor crest score, a gold loan is present to assist you.

 Gold Loan features

The loan amount of a gold loan is determined by the purity and the weight of the gold. The purity of the collateral should be between 18k and 24k. It also depends on the rate of the gold on that particular day. The gold rate today is Rs 48,750 for 10 kg of 24-carat gold. The loan term of a gold loan varies from 3 months to 36 months in most banks and NBFCs. The interest rate of a gold loan is a minimum of 7.0% and a maximum of 20%, depending on the loan amount and tenure. Choosing the interest rate is primary as a part of your monthly income goes to the financier as interest. Farmers with agricultural lands in their name can avail interest rate with an interest rate less than usual. The processing fee and preclosure charges are mostly NIL in many banks and NBFCs, but a few charge up to 1% of the loan amount.

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