An individual before applying for a loan against gold, which is nothing but a gold loan has to look into and be familiar with the process he/she has to go through for the loan to be sanctioned. We will now brief you about the basic procedure that goes on the path for a gold loan to be sanctioned.
STEP BY STEP PROCESS
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You can get your gold loan from either a specific bank you choose to or even there are Non-banking Companies that offer to lend you the loan against your gold.
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When in case you chose banks like ICICI that offer ICICI gold loan,the requirements from a bank to bank differs in reference to, tenure period, interest rate, mandatory document submissions etc.
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The time process is quick enough, that it all depends on the proof of gold being owned by you and on the paperwork. It might take up to an 1hr on average.
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However, in case you chose to opt a non-banking company such as Mannupuram gold loan or Muthoot finance, one advantage is the time taken for the process to be less company to banks, as these initially request for less number of documents as proof. But something to know is that interest rates charged by these NBFCs are high compared to the banks.
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The repayment terms of banks eventually vary from 3-12months, but you have the freedom to repay at any time.
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While, the repayment terms offered by Non-banking companies provide you the option to choose the repayment duration and so you can proceed to select the best loan that you are comfortable with.
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Whether you choose a NBFCs or banks, your gold is safe and secured and you can have it all by yourself, as long as you pay your loan back to back on time. You also have nothing to worry about the condition you are going to receive, as it can be assured that it will be coming back into your hands in exactly the same state of condition and weight, that was offered from your end.
DO’s AND DON’Ts while applying for a gold loan
DO’s
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Time and again have a keen comparison made between lender to lender to offer yourself with the best interest rates.
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Always go through reviews of lenders, as it’s a big step you are taking by lending your gold. Don’t go with your gut feeling, but have a word and work from your end to see who is trustworthy.
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Ensure there is proper authenticity from both ends on agreement.
DON’Ts
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Do not apply for the exceeding and high gold loan, that might be a waste for you, cause eventually you will end up losing the assets.
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Do not ever make a mistake of not calculating and adding up to budget the loan EMI. To make things easy for your calculation, Gold Loan EMI Calculator comes always handy when needed.
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Do not just be stuck in comparing the rates, but also make sure all the other leftover charges and clauses are compared and keenly looked upon.
