What is Gold loan interest rate now? Are you eligible for loan? Find out

Finance

Gold is one of the most flexible assets; it looks stunning, can give high returns and most importantly you can mortgage it to satisfy your financial needs. There are many institutions offering gold loan at great rates. However, it is important to identify the right offer. Let’s find out more on how to evaluate a gold loan offer in this post.

When we need liquid cash, we often look at either liquidating our asset or taking loans. However, liquidating an asset is not easy, and it requires some time. If you have gold and need liquid cash, you can either sell it or mortgage it for answering your sudden financial needs. At that point, instead of selling away your gold at a loss, you can keep it as a security and avail the benefits of a loan. In this way, you wouldn’t have to let go of your gold, and you will get the required amount as well. Besides, interest rates for taking gold loan are not high. Read here the other benefits of this facility.

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Gold Loan

This facility helps you in getting an amount by keeping your gold as collateral with the company. The company, in turn, offers you the amount that your gold possesses as per the value in the market. While your gold remains safe, you get the amount as well.

Amazing features of Gold loan

Following features are sure to make you think about considering the Gold loan:

  • The schemes can be customized as per your requirement
  • You can get a loan starting from Rs. 3,000 and above
  • The tenure of the loan can be from 3 months to 11 months
  • The Gold Loan Interest Rate can be about 12% p.a. and above
  • The gold pledged remains secured with the company
  • The maximum amount of the loan that you can get is 75% of the market value of your gold.

Are you eligible for this loan?

If you are able to tick all the following points, you can right away apply for Gold loan:

  • You are 21 years and above
  • The gold is 18 karats or above
  • You are either self-employed or salaried

Documents you need

  • You would have to show your ID that can include PAN card, Aadhar Card, Driving License, Passport, Voter ID, etc.
  • You would have to give your address proof as well; that can include Aadhar card, driving license, passport, voter ID, etc.

The company may also charge some additional money from you. These charges include-

  • Processing Fee – It depends on your loan amount.
  • Closure Charges – If you repay your loan amount before three months, then you wouldn’t have to pay closure charges.
  • MTM Charges – This could vary from market to market from where the loan is taken.

This is the most convenient way of getting the desired amount of loan and that too, at reasonable interest rate. Moreover, your gold remains safe under surveillance and in burglary and fire proof vault. Also, you can get the insurance of the gold that you have pledged. After paying the specific amount, you can take away your gold anytime. An easy and hassle free facility, isn’t it?