Personal Loan Against Gold
If you are looking to take a loan to meet your financial requirement, then you can consider taking the personal loan against gold. In order to do this, you need to offer your jewellery to the lender(Bank or NBFC). The lender does the evaluation of the purity of the jewellery and the evaluation charges are generally paid by the borrower. After the evaluation is done, the paper work related to the mortgage is processed. Banks require you to produce personal documents like Pan Card, address proof and various other things. The lender will provide a loan that is up to a maximum of 80% of the jewellery value. Once you repaid the loan, you can get back your gold back from the lender.
Taking a personal loan against gold is a Secured Loan and it needs to be taken only if you are sure of repaying the amount. Purchasing a Gold loan is basically borrowings against the gold. You should be careful while buying this lone as if you are not able to repay the loan then you might end up losing the gold. The duration of the gold loans is typically ranges from of 3 to 12 months. They make up the best way for funding short term financial requirements. It does not include end use restrictions and thus, user can take this loan for any purpose.
The loan amount is not more than the 80% of the value of gold. The interest rate charged by banks is in the range of 11.5% and 15%. Banks levied the processing fees while NBFCs do not charge the services fees. However, the rate of interest charged by NBFCs is way higher when compared to banks. The gold loan can be terminated at any time without paying any penalty charges. The banks charged a penalty interest of 2% in case of irregular payment of EMIs. The lender keeps the exposure to the market risk that arises from fluctuations in the market price of gold.
Related posts:
- Personal Loan – Advantages of Taking Gold Loan
- Personal Loans Against the Fixed Deposits
- Personal Loan – Fees & Charges
