India is one of the largest importers of gold in the world and Indians have had a cultural connection with gold for ages. Therefore, they purchase the metal in the form of ornaments and artefacts which hold a good value and can help in future financial appreciation. But many people are unaware that their gold assets can help them meet short-term fund requirements. You can apply for a gold loan online or offline hassle-free from a non-banking financial company or a bank. Before that, let’s see why it is ideal to manage short-term cash needs. Here are the top reasons.
Flexible Loan Amount
If you choose a top lender, you can get access to gold loans ranging from Rs 10,000 to Rs 50,00,000. The credit amount is flexible enough to meet various short-term financial needs like:
- A medical emergency
- A relocation
- Holiday expenses
- A 2/4-wheeler purchase
- Paying off accumulated debt
You can apply for a suitable amount based on your fund requirement and repayment capacity. Use a digital gold loan calculator on the lender’s website to choose the needed loan amount and tenure.
The eligibility criteria to apply for a gold loan are quite basic. You usually need to be:
- An individual Indian resident
- At least 21 years of age
- Not more than 70 years old when the loan matures so your golden years are free from financial burdens
- The owner of the gold jewellery that you deposit
Since the eligibility criteria are simple, it becomes easy to get a gold loan to finance an urgent need right away.
You can borrow a gold loan with very few documents because it is a secured loan. Therefore, the lender gives more importance to your gold deposit against which the loan is secured. Here are a few documents that are usually needed:
- PAN details or Form 60
- KYC documents (identity and residential proofs)
- Bank cancelled cheque
See if you can upload the gold loan documents online to save time.
Minimal Processing Time and Fee
The time needed to process a gold loan is very less. That is mainly because the documentation involved is minimal. Also, the lending institution has gold evaluators at its branch itself to save time for processing the loan. They evaluate the value of your gold deposit in your presence so you need not come back later with any confusion. Therefore, you can get quick access to cash to meet your urgent fund need. On the other hand, the processing fee is also low, generally below 1%. So, you can easily avail the loan.
Minimal processing time means quick loan disbursal. If you choose a reputed lender, you can usually receive a gold loan online or offline within a couple of hours. In the case of an offline application, the lender has its sales team at the branch itself where the professionals review your application on the spot to disburse the funds. This can help you address an urgent cash requirement without much delay.
Lower Importance of Credit Score
Since a gold loan is a secured loan, the collateral matters the most. Therefore, even if you have a fair credit score, not excellent, you can still get a gold loan usually, provided you meet the eligibility criteria. However, if you have a very poor score, the lender may or may not grant your loan request. So, try to maintain a good credit score just to take no risks.
Once you get the funds, use the gold loan calculator to check the EMI payable and ensure that you repay the loan responsibly on time.