The Covid pandemic has once again made life difficult for the commoner as it deepens. Many businesses have been forced to shut down or are on the verge of closing. Many people have completely lost their source of income. Thus, gold loans are in high demand in unpredictable times like these.
Gold loans have become a popular option for Indian households because most own some gold. Gold can be used in many ways and has many applications. As well as being used as a piece of jewelry, a gold bangle can be a status symbol, a family heirloom, or a source of instant cash during difficult times. Because of this cultural significance of gold, India has become one of the world’s leading gold consumers.
Why is the demand for gold loans increasing?
In times of crisis, the gold loan is one of the most accessible options for securing funding. To access funds, one can visit a bank and have their jewelry assessed and valued. Based on the current gold rate, you can get up to 75% of the value of the gold asset.
When you cannot easily get unsecured loans, such as a personal loan, especially during these difficult economic times, financial institutions have strict eligibility criteria, such as a high CIBIL score and a minimum income level. As a result, gold loans get more popular since you can get a gold loan without a CIBIL score or proof of income. Furthermore, banks and non-banking financial institutions provide online gold loans with in-house evaluations to fully explore the gold loan market. You don’t even need to leave your house to fill out a gold loan application or receive funds, as the process is entirely online.
Key Features of Gold Loans
In the Indian context, gold loans are attractive due to their availability and trustworthiness. Almost all branches assure complete security of the loan due to their accessibility and trust.
Second, gold loans don’t have a specific purpose assigned to them to be used any way the consumer desires. It is possible to take gold loans for very short periods and with high loan-to-value ratios. According to the chosen sector, many companies offer attractive interest rates and various payment options.
Here are a few other reasons why more people are taking out gold loans
Using gold loans:
Gold loans have the advantage that they have no restrictions on their use. Personal or business needs can be met with gold loans.
Interest rates are low:
In addition to being easily available, gold loans are offered at low-interest rates. A gold loan has the lowest interest rate at 9.50%.
The amount of the loan is flexible:
Many banks and other lenders offer flexible loan amounts. Depending on the value of the gold you have pledged, you can get loans of lower and higher values.
Documents proving your income are not required for a gold loan. You can apply for a gold loan with only a few documents, such as proof of address and identity. In addition, there are fewer formalities required to verify documents than with any other type of loan. A gold loan is secured against your pledge gold assets, but banks verify their purity.
Options for flexible repayment
Gold loans offer flexible repayment terms, unlike any other type of loan. Below are a few ways to repay a gold loan:
• Using a bullet repayment scheme, you can pay off the entire outstanding balance at maturity.
• Pay the monthly installments of the gold loan using the regular EMI option.
• Finally, you may also repay your loan through the payment of interest during the loan tenure from banks and financial institutions. You pay the remaining loan amount when it reaches maturity.
Calculator for Gold Loans
There is now an easier way to apply for a gold loan with online tools like gold loan calculators. Calculate the amount of the loan you can get based on the value of your gold ornaments with the help of a gold loan calculator. The gold loan rate per gram has become more convenient thanks to online tools such as gold loan calculators. Gold loan calculators make it easy for you to calculate the loan amount you can get based on the value of the gold jewelry you own.
Most Indian households are idle with gold, an auspicious yellow metal. Approximately 65% of India’s gold production comes from rural areas, which account for nearly 22,000-25,000 tons. Gold’s potential and rising gold prices certainly indicate that gold loan demand will increase shortly.
Although if you are also interested in taking gold loans at minimal interest rates and hassle-free, you can choose Rupeek, one of the best gold loan provider companies in the market. Many people are happy with their services hence you can check their website for more information.