Things to know about Gold Loan

Gold has special emotional value for Indian people and it is a way to invest also. You can use the gold when there is a cash crunch in the family. Gold is pledged as collateral with the lender who in turn gives you loan against the market value of the gold. After repaying loan with interest in the given period, you can get back your gold.

Borrowing money against gold is very common in India although it is the done in sheer emergency. Although, gold loan is now relatively easy to borrow, you might be having some doubts about obtaining it.

Here are few things that you can consider before pledging your gold:

1. Pledging Gold Jewelry: Normally people pledge gold jewelry but there are some rules that need to be followed. Gold ornaments studded with stone fetch very less amount as the rate of jewels is not considered. Also the price of the gold will be decided after checking its purity.

2. How to Avail Gold Loan: When you take your ornaments to the lender, he will first check the purity of your gold and then will decide how much amount you will get as loan. Banks or any lender will charge you a minimal amount as processing fee but rate of interest may vary from one company to the other with very little difference. Gold loan can be availed online as well. You only are required to download best instant loan app and apply.

3. Safety of Gold: You should not put your gold at risk by pledging it with a non-licensed company. It is advisable that gold loan should be applied only to a reliable lender like Rupeek Gold Loans Company in Bengaluru. Since good and trustworthy lenders have vaults, your gold will be safe with them. It will give you peace of mind if your precious items are safe with the lender.

4. Eligibility of Age: While applying for gold loan, the applicant should be minimum 18 years of age.

5. Documents Required: Now a days, you need not submit a bunch of documents for gold loan. The documents you will require to submit are passport size photograph, copy of Aadhar card and PAN card, or copy of driving license, and address proof such as gas or electricity bills. Form 60 can be submitted in case you do not have PAN card. Generally gold loan is sanctioned on the spot.

6. Repayment Options: There are number of options to choose from to repay the loan.You need not pay loan in EMIs but you pay interest and principal together at the end of tenure while in upfront interest option, you are given the option of paying entire interest of loan in the beginning while principal can be paid at the end. Regular EMIs gives you the option to pay your loan in EMIs and overdraft facility means you pay interest only on the utilized sum.

In order to get best gold loan in Bengaluru, you can approach Rupeek Gold Loans Company. This company offers instant gold loan at very good interest rates and your gold is safe with them as it is kept in the vaults of their lending partners like ICICI Bank, Karur Vysya Bank and Federal Bank.