The prevailing economic unrest dented household income to a great extent. Hence, individuals are inclined to gold loans to tide over the financial difficulties and address medical emergencies or other basic credit requirements. Eventually, it boosted the gold loan market in India that saw almost 82% CAGR in March 2021.
Since gold is a common asset that most Indian families possess, it becomes one of the most popular channels to raise funds. Besides the ready availability of collateral, the quick processing, doorstep services make this credit instrument a viable borrowing option for immediate cash needs.
Hence, to leverage its most features, individuals can follow some tips to avail of this credit easily.
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Useful tips to avail a gold loan fast and easy way
Although lenders approve a loan against golds easily if the pledged yellow metal is of high carat measure, individuals can follow the tips below to make the process even faster –
- Apply online
Gold loans are available both online and offline. However, if you need quick funds, it is better to choose the online application mode. It takes only a few minutes to fill up an online application form and submit it.
Additionally, most financial institutions, including NBFCs, encourage intending borrowers to access digital gold loan facilities.
- Choose doorstep services
Leading financial institutions also provide doorstep services for gold loans in India. With this facility, borrowers do not have to visit the lender’s branch physically. The lender sends representatives to collect the documents and appraised gold by visiting an applicant’s address.
Hence, a doorstep loan facility like this proves to be beneficial during financial emergencies.
- Check loan approval and disbursal time
The gold loan process varies with lenders, and therefore, the time for loan approval and disbursal also changes accordingly. Hence, it is crucial for borrowers to check the loan approval and disbursal time before applying.
Usually, this approval and disbursal process gets completed once the gold is appraised and paperwork is done. In most instances, the representatives disburse the loan amount before leaving an applicant’s address. However, individuals should also check if there is any waiting period before they can use this fund.
Use calculator to know loan eligibility
Before applying for a gold loan, it is equally important to decide the credit amount. Applying for an amount more than the current value of the gold you possess may lead to loan rejection.
Hence, to check the maximum loan amount you are eligible for, you can access a gold loan calculator. It requires you to enter the gold details, tenor, and applicable interest rate. It will display the maximum loan amount that you can avail of within seconds.
Alternatively, you can also enter the loan amount and other two variables to see the gold weight you need to pledge.
- Gauge the repayment capacity beforehand
In any case, the lenders approve a loan amount after checking the repayment capacity of applicants. Hence, individuals should consider monthly income and pick a repayment option accordingly to ensure a guaranteed loan approval.
Although the CIBIL score does not play a major role in gold loan approval, lenders check the repayment history and overall credit profile before approving a credit and offering an interest rate.
- Choose a credible lender
Even if the priority is to choose a lender that processes a gold loan faster and easily, borrowers should not overlook terms and conditions associated with this credit. Since the pledged gold will stay with the lender for the tenor, it is essential for borrowers to ensure the safety of their gold articles and enjoy favourable loan terms.
In this regard, they can choose renowned NBFCs like Bajaj Finserv that maintain 100% transparency and offers the industry-best gold security. They also offer a complimentary gold insurance policy to financially protect it from theft and misplacement during the tenor.
Besides following the tips, individuals should also know the application process of gold loans to streamline borrowing.
How to apply for gold loans in India online?
The gold loan application process is not the same with every lender. However, the following are the basic steps to apply for this secured credit online:
1: Visit the online portal of your preferred lender and go to the ‘Gold Loan’ section
2: Click on ‘Apply Now’ and enter your basic details like name, contact number, etc., to log in
3: Open the online gold loan application form and fill it with gold details, credit requirements, monthly income, etc.
Step 4: Submit it
Within a short period, representatives of a concerned financial institution will contact you for verification and fix an appointment to visit your address. Following the gold appraisal and paperwork, they will initiate the loan disbursal process.
Hence, following the tips mentioned above, individuals can secure a gold loan quickly. However, besides quick loan processing, they should also make repayment plans beforehand to clear the debts faster. For instance, individuals can consider part-prepayment and foreclosure facilities for this matter.