If you’re looking to acquire a gold article but are worried about the costs associated with its purchase, a gold loan is a viable option. Gold loans can be obtained through different institutions. Depending on the lender, repayment periods can range from 3 to 12 months, with some allowing the borrower to extend the loan for a period of time. As with other types of loans, you should consider the repayment structure when comparing gold loan offers.
Usually, the interest rate on a gold loan will be less than that of an unsecured loan. However, the rate depends on the duration of the loan, the amount, and other factors, which should be evaluated carefully before taking a loan. The interest rate on a gold loan can range between seven and 29 percent per annum. For the best deal, it is best to compare multiple offers from different lenders.
Choosing the lender is the first step in obtaining a gold loan. Once you’ve chosen the lender, they will evaluate your gold and your documents to determine the value of your gold. Then, the provider will make you an offer up to 80% of its market value. If you have an emergency, this type of loan may be a good choice.
Gold loan lenders usually require the borrower to provide a few documents to get approval. These documents can include ID proof and address proof, as well as two photographs. Then, the lender will value your gold ornaments in your presence and determine how much you should borrow. Once you’ve determined the amount of money you need, you can fill out a gold loan application form and submit all of the documents required by the lender. Once approved, your gold loan will be processed instantly.
When considering a gold loan, make sure to compare interest rates and fees. Banks typically charge 12.5% interest on loans against gold. Non-banking lenders have far fewer restrictions, and can provide a better interest rate. When applying for a gold loan, be sure to check the purity of your gold.
As with any loan, make sure the lender is reputable and you can afford to pay the money back. The repayment term on a gold loan can vary from three months to 48 months. It’s important to compare interest rates and EMI options, as a higher gold loan can cost you more in the long run. It’s also important to make sure the lender has good customer service channels.
If you are looking for a gold loan, you will need to provide proof of identity and address. These documents can include a passport, PAN card, or Aadhaar card. Depending on the lender, you may need to provide a photo as well.