Loan Against Gold: Use Your Jewelry in Your Problems
Our life is full of needs and desires, but there are many times when a person feels shortage of funds to accomplish these needs. The answer to this problem is availing a loan. Taking a personal loan is not always the right deal as there is an option that can offer quick and immediate funds. A Loan Against Gold is a scheme that offers money to people by involving gold as collateral. It is a quick and hassle free finance option that requires minimal documentation. So, instead of selling the gold jewelry, coins, bars and biscuits, one can acquire the money by placing it as collateral.
Process:
The process of gold loan is very simple and easy. The borrower has to pledge the gold ornaments like coins, bars, biscuits etc. with the lender and the lender offer the liquidity at a predetermined rate of interest. The loan gets sanctioned after examining all the documents and evaluating gold pledged. The money is offered in the form of cash, demand draft and account transfer. The whole process is quicker than other loans offered in the market.
Key features:
Evaluation of gold:
The method to evaluate gold varies from lender to lender. Generally the loan is sanctioned on the basis of weight, purity and present market rate of gold. Lenders require gold with the carat range of 18 to 24. The value weight of precious stones, if embedded in the gold jewels is disregarded.
Documents required:
The gold loan is the only offer that requires minimum documents to qualify for a loan. Usually the documents required are identity proof, address proof, loan application and two passport sized photographs of the applicant.
Rate of Interest:
The interest rates charged on gold loan are more attractive than a personal loan. The rate of interest depends upon the amount of safety offered by the lender. The rate of interest ranges from 10 to 20 %. It is the only deal in the market which is offered at lowest interest rates in the market.
Process:
The process of gold loan is very simple and easy. The borrower has to pledge the gold ornaments like coins, bars, biscuits etc. with the lender and the lender offer the liquidity at a predetermined rate of interest. The loan gets sanctioned after examining all the documents and evaluating gold pledged. The money is offered in the form of cash, demand draft and account transfer. The whole process is quicker than other loans offered in the market.
Key features:
- You can acquire money up to 80-90% of the market rate of gold.
- There is no need to sell the gold ornaments in case of any emergency.
- The loan amount can be repaid at any point of time as there are no prepayment charges on this loan.
- It is a short term Loan having a tenure period up to 3 months to 12 months.
- Individuals of low income group or unemployed can also avail this loan.
Evaluation of gold:
The method to evaluate gold varies from lender to lender. Generally the loan is sanctioned on the basis of weight, purity and present market rate of gold. Lenders require gold with the carat range of 18 to 24. The value weight of precious stones, if embedded in the gold jewels is disregarded.
Documents required:
The gold loan is the only offer that requires minimum documents to qualify for a loan. Usually the documents required are identity proof, address proof, loan application and two passport sized photographs of the applicant.
Rate of Interest:
The interest rates charged on gold loan are more attractive than a personal loan. The rate of interest depends upon the amount of safety offered by the lender. The rate of interest ranges from 10 to 20 %. It is the only deal in the market which is offered at lowest interest rates in the market.
Source...