Taking a Deep Dive Into Gold Loans: Advantages, Charges and Documents Required
The name of this loan suggests it all. Gold loans are a type of secured loans that offer instant money in lieu of gold pledged by a borrower. However, this is also the reason why you must know all the nitty-gritty related to this loan product; the reason being, you transfer your gold to someone else's custody. If you have been researching thoroughly to know about the smallest yet essential details, this article is just for you.
Advantages At a Glance-
#1. Instant Money-
The biggest advantage that gold loan offers is instant financial relief. For it merely takes a paper work, and no guarantor is needed. This is why everybody and anybody is eligible for applying to this loan, provided they have gold ornaments to pledge.
#2. No Waste of Time-
Unlike any other loan products, gold loans take a little time to comply with formalities. It could be even a day's affair if you apply for it being well-prepared with documents; gold ornaments and proof of your resident, age and capacity to pay back the loan amount are essential.
#3. Credit History Hardly Matters-
A borrower pledges gold and takes a loan. This is why a borrower's credit history hardly matters when it comes to take a gold loan. If you have locked up your gold ornaments, take them out and pledge it and get a loan in little time; it's easy simple and hassle-free.
Charges-
#a. Loan Processing Charges- Gold loan providers generally don't charge anything under this heading. However, it might vary from one bank or finance company to the other.
#b. Valuation Charges- The professional valuers do charge customers for getting the real market value of the gold pledged. However, those lenders who have an in-house team waive this charge.
#c. Pre-payment Charges- Taking all the details of lenders of wide repute in account, it can be said that top lenders don't charge customers for paying their charges before the deadline. However, there's always a late-payment charge.
#d. Check With The Provider- As all these charges vary from one institution to other, checking with provider before applying for a gold loan, thus, becomes important.
Documents-
#I. Identity Proof- Passports, driving licenses, voter Id cards, Pan cards are essential to prove and claim your identity. Carry these documents with you.
#II. Proof Of Address- While applying for a loan, address proof is essential. Your electricity bills, ration card, Voter id card or even a passport can serve your purpose.
#III. Signature Proof- To withdraw money from account, you need to sign on cheques or drafts. For this, banks and finance companies due to the RBI guidelines ask for a signature proof. A photocopy of your passport or driving license will do.
A little suggestion-
Before you start applying make sure you are choosing a reliable brand that has nationwide recognition. You tranfer the custody of your gold, if not the ownership. And this is why testing the waters is for sure essential.
The Bottom Line-
A majority of loan applicants prefer to apply this loan because it saves their time, and offers financial relief instantly. If gold's custodian is safe and secured, taking a gold loan is wise. It saves your pocket by waiving a lot of charges and more importantly, offers peace of mind.
Advantages At a Glance-
#1. Instant Money-
The biggest advantage that gold loan offers is instant financial relief. For it merely takes a paper work, and no guarantor is needed. This is why everybody and anybody is eligible for applying to this loan, provided they have gold ornaments to pledge.
#2. No Waste of Time-
Unlike any other loan products, gold loans take a little time to comply with formalities. It could be even a day's affair if you apply for it being well-prepared with documents; gold ornaments and proof of your resident, age and capacity to pay back the loan amount are essential.
#3. Credit History Hardly Matters-
A borrower pledges gold and takes a loan. This is why a borrower's credit history hardly matters when it comes to take a gold loan. If you have locked up your gold ornaments, take them out and pledge it and get a loan in little time; it's easy simple and hassle-free.
Charges-
#a. Loan Processing Charges- Gold loan providers generally don't charge anything under this heading. However, it might vary from one bank or finance company to the other.
#b. Valuation Charges- The professional valuers do charge customers for getting the real market value of the gold pledged. However, those lenders who have an in-house team waive this charge.
#c. Pre-payment Charges- Taking all the details of lenders of wide repute in account, it can be said that top lenders don't charge customers for paying their charges before the deadline. However, there's always a late-payment charge.
#d. Check With The Provider- As all these charges vary from one institution to other, checking with provider before applying for a gold loan, thus, becomes important.
Documents-
#I. Identity Proof- Passports, driving licenses, voter Id cards, Pan cards are essential to prove and claim your identity. Carry these documents with you.
#II. Proof Of Address- While applying for a loan, address proof is essential. Your electricity bills, ration card, Voter id card or even a passport can serve your purpose.
#III. Signature Proof- To withdraw money from account, you need to sign on cheques or drafts. For this, banks and finance companies due to the RBI guidelines ask for a signature proof. A photocopy of your passport or driving license will do.
A little suggestion-
Before you start applying make sure you are choosing a reliable brand that has nationwide recognition. You tranfer the custody of your gold, if not the ownership. And this is why testing the waters is for sure essential.
The Bottom Line-
A majority of loan applicants prefer to apply this loan because it saves their time, and offers financial relief instantly. If gold's custodian is safe and secured, taking a gold loan is wise. It saves your pocket by waiving a lot of charges and more importantly, offers peace of mind.
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