A gold loan is a loan secured by gold in which the customer deposits gold jewellery as security with a gold loan company.
In exchange, the corporation provides the consumer with a loan based on the market value of gold. Taking a gold load is secure and straightforward, and it has long been a financial tradition in India.
Many people pledge their gold jewellery to financiers to arrange finances to cover a large emergency bill or establish a new business. Banks and non-banking financial institutions both offer gold loans (NBFCs).
The market for gold loans is rapidly advancing in India. The gold loan has been supplied for several centuries by monetary lenders and pawnbrokers and is extensively used by people from every corner of the world.
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In recent years gold loans have changed from unorganized to organized sectors like banks and specialized non-bank financial institutions. The company has been decisively transforming the gold loan business.
The fast growth of the number of institutions concerned, their network of branches, the volume of business committed in gold, and the importance of loans paid out have brought the market in gold loans to new dimensions.
While it is easy to get a gold loan, it is helpful if you know the facts in advance and the procedure concerned. Below are some of the common questions a large number of buyers would want about gold loans:
What is a gold loan, and what does it entail?
A gold loan is a secured loan backed by the pledge of a gold adornment as security. The loan is worth approximately 75% of the total value of the gold pledged.
The loan can be repaid in a variety of ways, including flexible EMIs. Because it is a secured loan, the interest rate on a gold
loan is attractive and cheap. Banks and non-bank financial institutions (NBFCs) both offer gold loans.
What distinguishes gold loans from other types of loans, such as personal loans and credit cards?
The customer’s gold jewellery is accepted as collateral for the gold loan. Personal mortgages are granted based on an applicant’s source of income and repayment capacity. Gold loans, like personal loans or credit card borrowings, are frequently used for short-term household needs.
However, in terms of the cost and ease of obtaining the loan and repayment, gold loans are an excellent deal. Personal loans and credit card borrowings are unsecured loans ]and hence may have a higher interest rate.
Furthermore, personal loans necessitate considerably effort in terms of documentation, and they bind you to an inflexible EMI repayment schedule.
Gold loans, on the other hand, are less expensive and can be obtained in minutes. You can even ]spread out the payments to suit your needs; the only demand is to service the interest regularly. Credit card borrowings may be easier to obtain than gold loans, but the interest rates are prohibitively high and trap people in debt.
Gold loans, on the other hand, are less expensive and can be obtained in minutes. You can even ]spread out the payments to suit your needs; the only demand is to service the interest regularly. Credit card borrowings may be easier to obtain than gold loans, but the interest rates are prohibitively high and trap people in debt.
What are the advantages of seeking a gold loan?
A gold loan is comparable to a personal loan in that it meets your immediate financial needs, whether for international education, wedding expenses, medical problems, or any other personal usage.
A gold loan is comparable to a personal loan in that it meets your immediate financial needs, whether for international education, wedding expenses, medical problems, or any other personal usage.
• Quick Disbursement: Due to the secured nature of gold loans, less documentation
contributes to speedier processing.
• Flexibility of Usage: You can use the loan for any spending because there is no monitoring of the ultimate use.
• Secured Loan Type: No securities/collateral other than the gold ornaments are
required for the lender.
• Lower Interest Rates: Because gold is used as collateral, interest rates on gold loans
are lower than those on personal loans.
• Liquidate your idle asset: Gold is rarely used to make money. Therefore, gold loans are ideal if you want to raise capital and utilize the fund to meet your financial needs. It is also safer in a locker than in your home within a bank or a financial institution.
What are the minimum and maximum investment thresholds?
The Bonds are issued in one-gram gold denominations and multiples thereof. The minimum investment in the Bond shall be one gram, with a full subscription limit of four kilograms for individuals, four kilograms for Hindu Undivided Families (HUF), and twenty kilograms for trusts and similar entities as notified by the government from time to time per fiscal year (April– March).
In the case of joint ownership, the limit only applies to the first applicant. The annual ceiling will encompass bonds subscribed for in various tranches during the government’s initial issuance and those purchased in the secondary market. Banks and other financial institutions’ holdings as collateral will be excluded from the investment cap.
Who qualifies for a gold loan?
You can apply for a gold loan if you are a trader, businessman, salaried employee, self-employed person, or farmer. The age limits differ from bank to bank, but if you are between the ages of 18 and 60, you can acquire a loan.
When should I apply for a Gold Loan?
Some of the reasons to apply for a gold loan are as follows:
• When you need a loan quickly and for a short period If you have gold jewellery that you are willing to pledge.
• If you wish to avoid time-consuming paperwork, a gold loan requires only basic KYC documentation.
• There is no need for a CIBIL score or credit history.
• If you want to save money on borrowing,
• A gold loan has no prepayment penalty or processing costs, which lowers the overall cost of the loan.
How is the EMI on a gold loan calculated?
Using an online EMI calculator, you can quickly determine your Gold loan EMIs. When done manually, there is a more significant potential for error. As a result, it is preferable to use an online EMI calculator. When utilizing an EMI calculator, the following information is required:
• Interest rate
• The amount of the loan
• Tenure
What exactly is the Gold Loan Calculator?
The EMI on a Gold Loan Calculator is the monthly payment you must make to the financial institution or bank from which you obtained the loan. It is the amount you must repay to the relevant bank or NBFC. The interest component and the principal amount are both included in the EMI amount. The interest component is larger in the early months and decreases with later EMIs. You can use a Gold Loan Calculator to calculate your monthly EMIs at a set interest rate for a specific length. Your EMI is determined by the loan term, loan amount, and interest rate:
• Interest Rate- A greater interest rate on a gold loan equals a bigger number of EMIs.
• Loan Amount- A higher EMI for a larger gold loan amount.
• Loan Tenure-EMI decreases as loan tenure increases.
Is CIBIL Score necessary for Gold Loan?
The CIBIL Score has no impact on the processing of a gold loan online in Manappuram. This makes it an appealing choice for those who do not have or have a poor credit history. Manappuram Finance Limited is the top gold loan online company in Kerala, India that gives you the most money for your gold.
What are the documents that I need to submit?
• Two passport-sized photos
• Driving License, PAN Card, Form 60/61, Passport Copy, Voter ID Card, Aadhaar Card, or Ration Card are all acceptable forms of identification. A single document must be supplied.
• Address proof, such as a driver’s license, a voter ID card, a ration card, an Aadhaar card,
a passport copy, or a documented lease agreement with utility bills in the landlord’s name that is no more than three months old (anyone)
• In the case of an agricultural loan of more than one lakh rupees, proof of land ownership is required.
How much time does it take to process a Gold Loan?
In general, a gold loan can be approved in 90 to 120 minutes from start to finish, subject to the consumer submitting the requisite KYC documents and two colour pictures. Please keep in mind that if the loan amount is Rs.25 lakhs or higher, the customer must provide an ITR, and a PAN is necessary if the yearly income exceeds Rs.5 lakhs.
What happens if I am unable to clear my dues by the due date?
If the customer fails to settle the loan Account or pays interest/instalments/Principal Amount/any other amount, charges (“the total Outstanding”), whether after the Loan duration has ended or not. We will send the notification to the customer’s address listed in this application, and we will give the customer ten days from the date
of the notice to settle the whole amount owed.
If the customer fails to return the whole Outstanding even after giving ten days’ notice, the customer’s Pledged Gold Articles may be liquidated in a Public Auction by our policy. The auction will be announced to the public through an advertisement in at least two publications, one of which must be in a vernacular language and the other a national daily newspaper. If any of the Pledged Articles are sold at a lesser price than the amount owed by the client; the customer must pay the difference to us. Suppose the client fails to repay the deficit amount. In that case, we reserve the right
to take legal action against the customer and seize all moveable and immovable property belonging to the customer. If the Pledged Articles are sold for a higher price than the amounts
Due to the excess amount may be repaid after all other amounts payable by the customer to us have been adjusted. If a loss is incurred on a sale, the customer must repay us, and if the customer is unable to make good on such losses, we may begin legal processes to collect the losses from the customer’s assets/property. We will not be held liable for any loss or costs incurred due to the sale of Pledged Articles.
We reserve the right to sell any of the Pledged Articles by auction at any time, even before the 12-month period expires, if we are convinced that the market price or maximum realizable value by the sale of the Pledged Articles is likely to be less than or equal to the total amount payable by the customer, in the form of principal, loan interest, and other amounts payable in respect of the
Loan.
How is the Market Value of my gold calculated?
The average gold price over the last 30 days is used to calculate the worth of your gold. Visit a Manappuram Finance Limited location near you for gold finance to determine the true worth of your asset. The value of a Manappuram gold loan per gram now is determined by the current
market rates.
What are the benefits of a gold loan online?
A gold loan online from Manappuram has various advantages:
• Receive a free insurance policy.
• Take advantage of a hassle-free and paperless transaction, even from your mobile device.
• Take advantage of simple documentation and a straightforward approach.
• Low interest rate with the option of paying in instalments based on the number of days the loan is used.
How much is the gold loan per gram?
You can receive up to 75% of the LTV of the gold. The quality of the determines the value gold and our gold loan per gram rate on that particular day.
What kind of assurance do I get for the safety of my pledged ornaments/jewellery?
The gold jewellery you pledged is kept safe in our Gold Loan branch’s fire and burglary-proof vault. The branch is always under electronic observation and secured by security. Furthermore, the ornaments that have been pledged are insured.
Can I foreclose on my loan account? Can I close my loan account before the end ofits term? What charges are involved in such a case?
Yes, you can close your account and pay back the loan amount before the tenor expires, releasing your gold from the branch. If you close your loan before three months, you will be charged a modest closure charge ranging from Rs. 0-150. After three months, there are no closure fees.
Can I make a partial payment on my loan?
Yes, you can make a part payment to repay a portion of the whole loan amount. In this case, you will benefit from future interest being imposed only on the remaining principal amount after part payment. Furthermore, you may choose to release a portion of your gold ornaments/jewellery in proportion to the loan amount that has been repaid.
Can I part release my gold?
Yes, you can do so after repaying a portion of the loan amount based on the quantity of gold you want to be released.
What kind of security/collateral must I give for a gold loan?
Any gold jewellery/ornament with a purity of more than 18 carats can be used as collateral for a gold loan.
How long will these loans last?
The lowest tenor is three months, while the maximum is eleven months.
Is there a processing cost for obtaining a gold loan?
Yes, a small processing fee is required when applying for a gold loan.
Why should I get a gold loan in Manappuram?
he benefits of obtaining a gold loan from Manappuram Finance Limited include the following:
• Transactions that are faster and easier to complete
• From 9.24 per cent per annum forward, interest is charged.
• Loan disbursement as soon as possible
• Best gold price in the market
• Gold pledged as security and insurance
What method of repayment should I use to repay the loan?
The loan can be repaid using any form of payment that you like, such as cash, check, demand draft, or online fund transfer.
What is the penalty for not repaying a loan on time?
Banks commonly charge a penalty that ranges from 1% to 6% per year. This is in addition to the interest rate you’ll have to pay to service your loan. If you find yourself in a tight spot, don’t rush to sell your valuable jewellery. Instead, use it as security to secure a gold loan. Retrieve your valuable ornaments by repaying the loan at your convenience. This is a great way to receive cash quickly when you need it. Because of the low-interest rate and quick processing, choosing a gold loan over other loans is a benefit.
