Gold Loan

Gold loan (also called loan against gold) is a secured loan taken by the client from a lender by pledging their gold articles (within a range of 18-24 carats) as collateral. The loan amount provided is a certain percentage of the gold, typically up to 80%, based on the current market value and quality of gold.

Benefits of a Gold Loan
Gold loan is similar to personal loan in meeting immediate financial requirements, be it an international education, marriage expenses, covering medical emergencies or any other personal use.

Quick Disbursal- Minimum documentation leads to faster processing of gold loan due to its secured nature.

Flexibility of Use- Since there is no monitoring of the end use, it gives you the flexibility to use the loan for any type of expense.

Secured Loan Type: You are not required to submit any other security/collateral to the lender other than the pledged gold ornaments.

Lower Interest Rate: Interest rates on gold loans are on the lower side when compared to personal loan, since gold serves as collateral.

Liquidate your idle asset: An idle asset, gold is seldom used for generating money. Hence gold loan is the perfect solution to raise capital and use the fund when you require money to meet your financial needs. It is also more secure in the confines of a Bank’s or a financial institution’s locker than your home.

Documents required for a Gold Loan
Documents that are required to seek a gold loan vary from Banker to Banker. However, the common list of documents includes: Passport Size Photographs, Identity proof (PAN Card, Voter’s ID, Aadhar Card etc.) and Address proof (Passport, Driver’s License, Electricity Bill etc.).

Can a gold loan be foreclosed? Are there any foreclosure charges?
Yes, a client can always foreclose the loan at any point of time. Most Bankers do not levy any foreclosure charges for gold loans, but a few Bankers charge between 2-4% of the outstanding principal amount.

Tenure of a Gold Loan
Gold loans are short-term loans and have a flexible tenure ranging from a minimum of 1 month to 5 years or more depending on the Banker.

“My Rupee Mantra” team access your financial requirements and choose the best Gold Loan Mantra (Product) suitable for the client. They check fees and charges of all tops Banks offering Gold Loans. They provide a best Mantra (Product) for the client with attractive rate of interest and terms with flexible tenures as per client’s repaying capacity.