Gold loans are very secured loans where all the gold jewellery is used as collateral. You very easily pledge your gold jewellery with most of the lenders and get a loan. You can very easily repay the gold loan through monthly instalments. After all the repayment, you get back all your gold jewellery. Nationalized banks, private banks, and some other kind of banks. Usually, most of the borrowers use this gold loan to meet a very sudden financial goal, such as a marriage, a child's education, and some other kind of expenses. Instead of selling gold, most people prefer to opt for this kind of gold loan. You can very simply take your gold jewellery to some lender and ask to pledge it for this gold loan. Most of the lender evaluates the gold as well as sanctions a gold loan after verifying all the documents. Many of the gold loan lenders may also provide a home assessment of all your gold jewellery. This kind of process is very quick and usually takes a day. The gold loans are very secured, the rate of interest is comparatively very less than unsecured loans. Non-banking Financial Companies can also charge very higher rates than some other banks. So, this is advisable to compare various rates of interest before getting the gold loan. This can be very higher than other loans. Whenever you apply for a gold loan, most of the lenders ask for a very good processing fee. You may also be charged for all the documentation. There may be fees applicable for many valuations of the gold. Many of the lenders may also charge renewal fees based on this kind of gold loan amount.
Your lender may always charge you service tax as well as some prepayment, and some other things also. The actual amount of this kind of charge varies from lender to lender. You may also lose the pledged gold if you fail to repay this within the tenure or any lender may auction this off to recover the gold loan amount. The way this kind of gold jewellery is stored may vary from many of the lenders, but very great care is taken to store all the gold jewellery properly.
The Indian Overseas Bank gold loan is very best for you. If you apply for a very higher gold loan amount, your monthly EMI will be very high. A very high rate of interest increases your gold loan EMI and the total cost of the gold loan. This Indian Overseas Bank rate of interest is very low if you compare it to any other kind of bank.
