Have you ever thought of converting your ornaments into easy cash? Gold loans are turning into an informal exchange these days. Whether it is a Tier1 or Tier2 city – people are turning more towards depositing gold with banks and NBFCs. The process for loan against gold has been available from ancient days but nowadays the overall process has become more formal and transparent with the entry of organized financial players. Some decades back, the gold loan was a high-cost affair, something around 30-50% but now organized players in the market (banks and NBFCS) offer the loan at 1%
Gold finds its usage in jewelry making, for which it enjoys the greatest demand worldwide. But then, silver is creating a niche for gold in the industrial sector. Also, gold loans hold a crucial place as one of the major investment avenues, with varied tax benefits. The attractive cash flow and payback period are the two major factors driving the popularity of gold loans among small investors.
Fundamentals that affect the demand for gold loans are:
- Gold loans are the easiest way to find money at low-interest rates. Gold is the best collateral one can have. You need not worry about collateral, or other documents such as income proofs and financial statements, whatever your purpose may be.
- Gold loans can be used for any purpose because almost no restrictions exist on its usage. With our quick and easy approval process, you too can make your dreams come true with our heavy loan approval.
- There are three main points of difference between the two: LTV, Rate of interest, and the buying price. The LTV should be 100% the same as the loan to value (or) gold loan packages offered by banks and NBFCs do not lend money on brokerage or the melted value of the gold but they consider the client’s demand bills or documents.
- According to your accommodation, the gold loan can be reimbursed in numerous ways. The loan can be repaid in cash at either of our branches or any of our ATM outlets. Or you may arrange to get it credited directly to your account once it is opened in HDFC Bank. Apart from this, there are various other options to repay the amount such as sending it by money remittance, getting it credited as a bill payment or even sending it through cheques. As you have the option to repay the loan the next day itself, you may send it through any medium that suits you best.
- If you need a loan for gold for as little as Rs 3,000/- per month, then you should also know that gold loans from Muthoot Fincorp are your least expensive and most flexible option. As low as 0.10% per month, the interest rate is applicable for up to 24 months. The lowest pricing in the market is available on the loan amount above Rs 50,000/-.
- Now, you don’t need to be a salaried employee or have an active bank account. If you have proof of identity and address, you can still apply for gold loans and buy gold on credit.”
- Gold Loan without Credit Checks. Since there are no credit checks on gold loans, you need not worry about a low credit score affecting the interest rate you pay.
- The gold loan calculator is designed to calculate gold loan per gram by giving data like Price per gram, Price per Kg., Withdrawal amount, Monthly interest, and total repayment. The whole tool is user friendly and you can change the data values in the input field. And know more about our gold loan services by clicking on the “Gold Loan” button.
- At Muthoot Fincorp, we make sure that we protect our customers. When you pledge your gold for a loan, you can be sure that it is a precious metal. All gold is weighed and verified in front of the customer freely before interest is paid to the customer. All of our loans are backed by collateral. If a borrower does not pay back a loan. The interest and the principal are repaid by selling her pledged jewelry. This protects all parties involved.
Today, the scenario of the gold loan market is changing at a rapid pace in India. Around 35-45 % of the gold loan market is occupied by NBFCs. With RBI proposing to introduce PCA for NBFCs. It seems that these institutions will dominate the gold loan market in the future.