Keeping gold is considered a status symbol in our society. The more gold he has, the richer he is. So many people buy gold your money Investment offer. By the way, anytime you invest in gold, you only get good returns. The reason for this is that today you buy gold at any rate, within a few months, the rate of gold increases and the gold purchased becomes worth more than your purchased price. After this, when you sell it, you get a higher price than the price you bought.
Sometimes there comes a time in life when you need money and no one is ready to give you money. In such a situation, the gold kept with you can be of great use to you. You can take a loan against the gold held and repay it on time to get your gold debt free. By doing this, your money needs are also fulfilled and your gold is also safe.
How to take Gold Loan?
The process of taking a gold loan is much simpler and easier than taking any other loan. You can take it in less time, with very less document. There are many such financial institutions in the country who mortgage your gold and give you a loan and if you repay that loan on time, then your gold is given to you. Some of the leading financial institutions offering gold loans are; –
Visiting these institutions Gold Loan can be able to apply for and gold loans. But to take a gold loan, it is very important for you to have some important documents. Their photocopy is taken while taking a gold loan.
Identity card like Aadhar card, Voter ID card
– pan card
– Passport size photo
With all these documents, you can apply for a gold loan by visiting any of these institutions. The amount you will get depends on the quantity and purity of your gold. You will get the loan amount according to the amount of gold you have. If you have more gold then the amount you will get in the form of loan will be more. You can also take the loan amount by giving gold according to your own.
Benefits of Gold Loan
Gold loan is much more beneficial than any other loan. It has many benefits like :-
In an emergency situation, when no one is giving you money, in such a situation, gold kept in your house can get you money. For this neither much document is required nor any kind of security is required. In this, your gold is kept as security.
The interest charged on gold loan is much less than the interest on other loans. If compared to other loans, then you can take it at a very low interest rate and can repay it easily.
When you take money from the bank or take a loan, then you have to tell where you will use that money. After taking the loan, it is also to be told whether you have invested the money for the purpose for which you have taken it or have invested it somewhere else. But this is not the case in gold loan. No matter how you can use the money you get from gold loan, there will be no one to ask you.
The best thing about a gold loan is that it does not have much documentation. Just like you have to present many types of documents to take a loan from the bank, similar documents are not required in gold loan. In this, only you have to give your PAN card, Aadhar card and bank passbook.
When you take a loan from the bank for any purpose, it takes at least 8 to 15 days to get the loan. But it does not take that long to get a gold loan. You can get a Gold Loan in a minimum of two days and a maximum of eight days.
To take a loan for any purpose from the bank, your CIBIL score should be good only then you will get the loan but if you are taking gold loan then it is not necessary that your CIBIL score is good. Even if the CIBIL score is not good, you will get the loan easily.
How is the Gold Loan repayment done?
There are two ways to pay the gold loan, but which of these methods will be adopted by your institution will depend on your institution itself. In this, the first way is that you are given monthly installment by mixing interest with the loan you have taken. You have to deposit a certain amount every month and your gold loan gets accumulated. Another way is that you just keep paying the interest amount monthly and pay the principal amount together.
Disadvantages of Gold Loan
While there are many advantages of taking a gold loan, there are also some disadvantages. Which you should not ignore. If you are taking a gold loan, then you should also be aware of its disadvantages.
After taking a gold loan, you have to pay every installment on time, if you do not then you may have to pay a heavy penalty.
It is very easy to take a gold loan but you are not given much time to repay it. You have to repay the gold loan within 1 year.
While taking a gold loan, you are not only charged interest but also other charges are charged. Investigate these charges thoroughly, otherwise they can give you huge losses.
Before taking a gold loan, make sure that you will be able to repay the EMI every month on the loan you are taking. If you think that you will not be able to repay it, then it is better to sell that gold than to take a gold loan, because remember if you take a loan on it, then you will not get the amount of gold on the loan. After this, if you are not able to repay the loan, then the institution will sell your gold and recover the loan amount. Even in such a situation, your gold will be sold and you will not get as much profit as it was going to be sold earlier. Therefore, before taking a gold loan, make sure that you are able to pay the EMI .
Gold loan is very easy to get but it should be taken very carefully. If you are not able to pay it, then you will lose your gold. It is better that you sell the gold yourself before taking the loan so that you can get its real value.