India is the country where gold is consumed a lot. The annual gold demand in India has increased by 804%. People in India use gold as not only jewellery but also for getting loans. If you search in internet you will find many gold loan interest rate in Indian banks differ a lot. You need to select the best one for you. In this article we have mentioned all information about gold loans.
- About Gold Loan – Gold loan is the secured loan which a borrower takes from a lender in lieu of gold ornaments. The amount sanctioned is some percentage of the gold’s value. You can pay it back by monthly installments. You can use the gold loan in any way like for wedding, child’s education or family vacation. You need to research gold loan interest rate in Indian banks for best interest rate. The process of this loan is also same as other loans. The lender will verify the documents and the gold, and then he will give instant money to the borrower. After paying all the installments you can get your gold articles back. The tenure mostly ranges from 3 to 12 months. The tenure may differ from lender to lender. The lenders decide the amount based on the weight and purity of the gold loan. Before taking loan, compare two to three lenders and then only make your choice.
- Eligibility for gold loan – You just need to be the resident of India. If you have less credit score than also you can get the loan. You just need enough gold for getting the gold loan, it is not too much complicated as personal loans. If you have gold go for the loan without any doubts. The age factor also matters for some lenders to give the loan.
- Gold Loan Repayment – The repayment method differs from lenders to lenders. Some allow you to pay only the interest rates and the principal amount at last of the tenure. You can pay through installments also which will include principal and interest component both of your loan.
The trend of gold is not going to die anytime. If you are in urgent need of money and having enough gold than gold loan is the best option. You just need to find the gold loan interest in Indian Banks. Just be safe with you gold and try to repay it as soon as possible.