Gold Loans are Convenient
The gold loan has become one of the most popular loan forms in the last few years. It is primarily because of the multiple formalities required for a regular loan. Lenders often ask for documents that are not easy to procure and that discourage ordinary loan seekers. Are you one of them and looking for the best gold loan company? If that is the case, you need to know in detail about the services of gold loan companies in India.
Gold Loan Process
You apply for the gold loan by giving basic information. You have both offline as well as gold loan apply online options, depending on whatever mode you choose. The lender evaluates the gold items you wish to pledge and subsequently releases the loan amount with predetermined interest rates. The lender will keep the gold items until the loan’s term is over and the borrower has repaid the principal amount with applicable interest.
How to Choose the Best Gold Loan Company in India?
The amount of loan required to fulfill the capital requirement is the first step in securing a loan against gold. The next important step is to select the gold loan company that will give you the best deal. You need to research the various banks and NBFCs that offer gold loans.
Nowadays, there are many options available to enquire about the service quality of lenders. You can read reviews about the gold loan company which will give you a fair idea about the best lenders in this business. This article will make your job easier by helping to evaluate your options and choose the best gold loan company in India.
Easy Procedure
It often becomes challenging to repay the amount if the loan term is very short. It creates more problems for people with limited income and financial status. However, India’s best gold loan company offers various goods and services at a very affordable interest rate. Almost every bank and some leading private sector lenders are now providing gold loans in India.
They adopt very simple procedures for disbursing gold loans, unlike normal loans involving lengthy paperwork and documentation. They all have a formidable presence on the internet. You can easily visit their websites and find out the details of repayment by using a gold loan interest rate calculator. You also get an option of a gold loan apply online on these websites.
Gold Loans are Safe
You may quickly and with little paperwork obtain a loan against gold. The best part of old loans are that they are secured because the lending banks or NBFC keep gold articles as collateral, such as gold jewelry, gold coins, etc. Besides, non-banking financing firms (NBFCs), all leading PSU banks like SBI, PNB, and Canara Bank, and private sector banks like ICICI, HDFC and Kotak Mahindra provide gold loans to customers. Some leading NBFCs are Muthoot Finance and Manappuram Finance, which provide gold loans at competitive interest rates.
Security
For a gold loan, you pledge gold as security which is kept in the lender’s custody. The loan disbursing company will keep your gold items until the loan is paid back. Therefore, the safety of your gold must be prioritized. Some lenders also provide insurance facilities to secure the stored gold.
Tenure Options
The tenure options you choose for the gold loan will greatly affect the interest rate and EMI amount for loan repayment. The monthly EMIs will decrease if the tenure of the loan increases. Therefore, to effectively manage your loan commitments, try to identify a lender with a wide range of tenure to suit your budget.
Rate of interest and Charges
Gold loans are subject to various expenses such as processing fees, appraisal fees, late payment penalties, etc. Although such charges are normal, the lender should ideally disclose all fees, even the hidden charges, if there are any. Do a detailed survey about the rate of interest from different lenders. Compare the rates with the HDFC Gold Loan Rate because it is the most affordable.
Repayment Options
The repayment option must be flexible, including EMIs, one-time interest payments, and ongoing interest payments. The more alternatives you get for loan repayment, the better for you.