Consumer Voice - - Gold Loans -

Gold cer­tifi­cate not needed: Gold loan does not de­mand any cer­tifi­cate to show your salary or in­come, and no credit card his­tory is required ei­ther. Thus, even un­em­ployed and non-earn­ing peo­ple can go for gold loan.

Less doc­u­men­ta­tion: Un­like any other un­se­cured loan, gold loan does not re­quire much pa­per­work. A few doc­u­ments such as iden­tity proof and ad­dress proof are enough to avail such a loan.

As per­sonal loan: Gold loan from a few banks is avail­able as per­sonal loan at in­ter­est rates of 15 per cent to 18 per cent per an­num.

Low in­ter­est for agri­cul­ture: In ru­ral ar­eas, agri­cul­tural loan against gold is also avail­able for agri­cul­tur­ists at a nom­i­nal in­ter­est rate of 7 per cent to 8 per cent per an­num. The ap­pli­cant only has to pro­duce proof of agri­cul­tural land­hold­ing.

Makes gold an in­vest­ment: Gold is of­ten re­ferred to as ‘dead as­set’ as it does not cre­ate/pro­duce any other as­set. By avail­ing a gold loan, the ‘dead as­set’ be­comes a na­tional re­source.

Right value: You can get loan up to 80 per cent of the mar­ket value of the gold.

Pay only the in­ter­est: Bor­row­ers have an op­tion to pay only in­ter­est dur­ing the en­tire ten­ure of the loan (loan pe­riod) and at the end of the ten­ure they can pay back the bor­rowed amount as one­time pay­ment (bul­let pay­ment).

Less pro­cess­ing time: In case of gold loan, the pro­cess­ing time is very less. Usu­ally banks take just a few hours to com­plete the process, and in case of NBFCs, it can be availed in a few min­utes.

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