A gold collateral loan, as the name suggests, is a secured type of loan. Here, you pledge your gold assets and borrow a specific amount of money against the same. It is an easy and very convenient way to arrange funds in cases of urgency and financial emergencies.
Applying for a gold loan against jewellery is a simple and swift process. Below are the basic steps to take to apply for gold loans:
- Check Your Eligibility:
Before applying for a gold loan, check if you are eligible to apply for it. The common eligibility criteria will always include:
- You must be the owner of the gold jewellery
- You must fulfil the age criteria set by the specific lender
- You must possess the necessary documents as specified by the lender
- The gold should have a purity of 18 Karats to 24 Karats
These are some universal eligibility requirements, but some lenders might also have some more specific criterias. Hence, it is always advisable to cross-check it twice before applying for it.
- Choose A Trusted Lender:
There are multiple lenders available in the market who offer gold loans at competitive interest rates. Your role, in a huge sea of lenders, is to compare all the offers, analyse them and see which one suits your needs the best. Also, make sure that the lender you are choosing is trustworthy and reliable.
- Gold Loan Calculation:
Using a gold loan EMI calculator app, you can easily figure out the valuation of your gold, the interest rate that could be applicable on it and the total repayable amount on your part. This is all dependent upon the purity of your gold, the weight of your gold and its valuation in the current market.
Using a gold loan repayment calculator is of great use because it allows you to figure out the terms of the gold loan before actually getting one. This also helps in transparency in the numbers as well as the future repayment plan.
Simply search for ‘EMI calculator gold loan’ on the Internet and choose an app or platform that is most reliable. This will also give you clarity in the exact EMI amount that you will be bound to pay once you avail the gold loan.
- Submit Documents:
Once all the calculation and evaluations is done, the next step is to submit your documents to the lender in order to kickstart the process of availing your gold loan. The moment this is done, all you have to do is wait for the gold loan approval letter.
Essentially, applying for a gold loan against jewellery is a highly transparent and secure process. With minimal documentation, thorough valuation, and flexible repayment options, it’s excellent for meeting urgent financial needs without necessarily selling your precious assets.
A gold loan against jewellery or gold assets is one of the most practical and authentic ways of accessing finance whenever needed. The entire process has been curated in such a manner that it is completely stress-free and straightforward for the borrower. When it comes to documentation, assessment, and disbursement, everything related to a gold loan is absolutely stress-free.