How To Get An Easy Gold Loan? What Are The Advantages Of Gold Loan

Updated: Wednesday, December 15, 2021, 15:36 [IST]

In a year when banks have been looking for low-risk growth due to the pandemic's lingering effects, gold loans have become the fastest-growing major loan area. The current epidemic and economic slump have given a substantial boost to the organised gold lending industry, which continues to offer a lot of potentials.

Loans against gold have long been considered the safest source of retail lending, on par with mortgages. Public sector banks, too, have made an aggressive drive towards the market in recent years in order to assure the growth of their retail books.

With the pick-up in economic activity and the advent of the festive season, which corresponds with the relaxing of lockdown restrictions by various governments, demand for gold loans from tiny firms and people - to fund working capital and personal expenses - has surged.

Easy Gold Loan

There are two types of gold loan lenders in the gold loan market, Bank and NBFC. To avail gold loan on your gold, you need to first choose which one out of two suits your needs and could fulfil the requirements.

Each institution could have a different procedure to apply for a gold loan. Visit their official website or the branch office to know more.

Where you can get Gold Loan?

Almost all the banks in India offer loans against gold. Banks such as ICICI Bank, HDFC Bank. SBI, Punjab national bank and various others are some of the good options you can consider for the gold loan.

However, if you are looking for the options such as NBFCs, there are multiple options available for you. Muthoot FinCorp, Manappuram Finance, Rupeek are some of the best-known gold loan providers in the country.

Why it is growing?

Gold loans are a highly protected and liquid asset type that delivers excellent returns with fewer credit losses from a credit standpoint. Lenders that provide gold loans are better positioned than those that lend loans to most other retail asset classes, especially, during periods of asset-quality pressure brought on by the pandemic.

Advantages of Gold Loan

Easy loan : You get an Instant and easy Loan without hassle over your gold ornament. To find out how much money you may borrow, use the online Gold Loan eligibility calculator.

Attractive Interest Rates : The interest rates on the Gold loan are attractive. Depending on the various factors, the lender offers multiple interest rates that fit your budget and the requirements.

Safe option : The gold loan is now booming, this indicates how it offers a safe and secure loan option to the borrowers. Your gold is housed in a secured vault within a secure area within the lender's premise. As a result, you can be certain that everything is safe and secure.

Simple & Easy Documentation: You can apply for the gold loan easily online or offline with very little and easy to do paperwork compared to other loans. The KYC documents are the only ones that must be produced. In many cases, if you are applying for a Gold Loan from a certain lender you don't need to visit the branch.

Repayment at the conclusion of the term: The term of a Gold Loan might be as short as one year. You have the option of repaying the loan in 6 or 12 months, depending on your needs and can be paid in an easy EMI option. This gives you the freedom to repay the principal and interest of the loan at the end of the tenure.