Gold Loan short guide

[caption class="snax-figure" align="aligncenter" width="662"][/caption]The Gold loan industry is one of the fastest-growing industries in today’s times. According to the World gold Council (WGC), around 22,000 tonnes of gold remains idle at homes with the Indians. The gold loan industry has taken that to their benefit and offered irrefutable gold loans to the people in immediate financial needs. Gold loans are the loans offered by the banks to the people in exchange for their physical gold. All you need to obtain a gold loan is any gold jewelry or ornament of more than 18 karats, valid Identity proof, and valid address proof. In case you keep your gold coins or bars as collateral, you are most likely to receive a greater loan amount. The amount of money that you get, however, varies for each bank.

Contrary to all the other loans, gold loans are easy to obtain and offer maximum benefits to the borrowers. Low processing fee, lesser interest rates, the maximum market value on the gold kept as collateral, no prepayment charges, easy documentation, fast processing, etc. Gold loans have become the new easy for all. Since there are now multiple banks and NBFCs offering gold loans, you must take into view all the major entities and choose the one most suitable for your needs. You can also take the help of a gold loan emi calculator to garner maximum benefits.

It is from this step onwards that Dialabank comes to your rescue. We help you compare various rates of Banks and help you get connected to the right brand. Once, you have a chosen bank, you need to carry along the gold that you wish to attain a loan with. The bank officials will check the quality and authentication of the gold provided and help you get the right market value. You can get a maximum of 80% market value for your gold. Though that varies from bank to bank. Once the loan amount and other charges are agreed upon, the process of documentation begins. Most of the banks just require a valid ID proof and proper address proof and bank account details to transfer the loan amount into. After these formalities are completed, the money is transferred into the bank account.

Most of the banks provide the borrower with a minimum of 3 months to a maximum of 2 years to repay the loan amount. But, in case the borrower is unable to deposit the time, the time can be extended, in the case of some lenders. If you are unable to repay the loan, the bank or the NBFC can sell your gold to reimburse the loan amount as decided by both the parties as to the loan agreement., in which way you not only lose your gold but are also unable to get the full amount of the gold. Hence, make sure you pay your dues timely and obtain the maximum benefits out of your gold loan.