Why Gold Loans Are Popular Among Borrowers in India?

A gold loan has various advantages, including speedy disbursement, a high loan amount per gramme, and low-interest rates. Continue reading to learn why borrowing money against gold jewellery is a smart way to meet immediate financial demands.

Multiple Repayment Options:

You have a range of options for paying back your gold loan. You can choose to make regular EMI payments, pay the interest as an EMI first, and pay the principal after the loan term. Depending on your convenience, you may also choose to make a partial payment or a single, quick repayment. Additionally, you might bargain for a lower interest rate if you select a repayment strategy with frequent payments.

Activating Idle Assets:

You will be able to borrow up to Rs. 2 crores with a gold loan. Given in exchange for the gold jewellery that would otherwise be left unused in the lockers, this loan has a lower interest rate. Numerous reputable lenders also provide complimentary gold insurance, protecting your jewellery from theft or loss while it is in their care.

No Part Repayment of Foreclosure Fee

For gold loans, reputable banks and NBFCs impose low or no foreclosure fees. Therefore, you can lower the overall cost of loan servicing by paying back a portion of the loan early or paying the entire amount without incurring any additional fees.

Easy Application Fee:

Because gold loans require actual gold jewelry as collateral, it is generally simpler to have the loan approved with less thorough document review and processing time. To get started, all you need are your KYC documents.

If you are an Indian citizen between the ages of 21 and 70, you can easily apply for a jewelry loan. You can apply by simply following these steps:

Step 1: Go to the preferred lender's website and find the gold loan product page.

Step 2: Select and open the online application form.

Step 3: Enter your first and last names exactly as they appear on your PAN card.

Step 4: Choose your city and enter your 10-digit mobile number.

Step 5: Enter the OTP that was delivered to your registered mobile number, then finish submitting the form.

Step 6: From the options shown to you, schedule an appointment at the closest gold loan branch office and bring your gold jewellery there in person for evaluation.