13 SEPTEMBER, 2019

It is now possible for you to avail loans against gold in case you are dealing with a financial emergency. It is a rather novel concept gaining popularity in the market today. This is because private companies are coming up with easy as well as time saving procedures for you to avail these loans. It is one of the best schemes that can enable an ordinary person with a fixed monthly salary to meet with sudden financial needs. You can also avail these loans at a lower gold loan interest rate. If you are new to this aspect of finance, you should acquaint yourself with how a gold loan functions and what are its benefits.

Why opt for it

One of the foremost reasons why more people are now inclined towards taking gold loan is that you can have the money credited to your account much faster. This means that you will have to go through fewer formalities. These loans are also rather secure and one of the fastest way to avail hard cash in case of cash crunch. Typically, it takes not more than twenty four hours for the process to conclude.

No documentation or credit history needed

This type of loans have gained popularity because you can avail them by means of only mortgaging your gold. You do not have to provide any added documentation except for a valid identification proof. This eliminates the problem of time since there are no documents to verify and process. You will also not need to have a blemish-free credit history for these companies do not verify that. They accept your loan application simply if you have gold to offer in return.

Convenience of availing loan

It must be understood that a gold loan is most convenient because you can get a loan of 80% of the market value of your gold. This is quite a good deal considering the low gold loan interest rate you will have to pay. There is also no rigidity attached to these loans unlike some bank loans and you can put the money to any use that may arise.

No need to be salaried
One of the eligibility criteria while availing a loan is for the person to either be salaried or be self-employed, without which there is no guarantee against which the loan could be provided. However, in case of gold loans, there is no need for you to have any monthly fixed income. The only condition applicable is that your gold will remain as collateral with the company until you pay the loan back.

 

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.