Gold loan is a type of personal loan that uses your jewellery as security. It is an ideal solution to meet your short-term cash needs. The interest rate is competitive, and the process is simple.
The gold ornaments that you pledge should be of 22k purity to qualify for a loan. The jewelry should also have minimal stones and gems.
No documentation
Gold is one of the most popular assets that people in India hold. Many Indians use this commodity for personal or consumption purposes, while others invest in it to earn a good return. Due to the growing demand for gold, banks have started offering gold loans, which are also known as loans against gold. These loans provide a number of benefits, including low interest rates, quick disbursement, and minimal documentation.
The purity and weight of your gold determine the amount of the loan. You can borrow a maximum of 75% of the value of your gold. In addition, the bank will charge you a nominal processing fee and a premium.
You can apply for this type of loan by walking into a branch and filling out an application. After the gold is evaluated, you will receive a credit limit within a few days. If you are an existing customer, you can get a higher limit.
Gold loans are available to individuals and SMEs, and they do not require any collateral or a down payment. The credit limit is based on the value of your gold and its purity, which Muthoot Finance verifies. In addition, the bank also offers an EMI calculator to help you determine your monthly EMIs.
The gold loan application process requires a few essential documents. These include a copy of your identity card and proof of address. You should also bring the gold you wish to use as security. Moreover, you should have an income source to support your loan repayments.
A gold loan can be used for any purpose. It can be a short-term financing solution or a long-term investment. It is also a popular option for those who have a low credit score. The gold loan can be availed by anyone who owns a gold ornament or coin. The loan can be repaid in 12 months. The loan amount is fixed at a per-gram rate for 22-carat gold.
The EMI calculator on the Andhra Bank website provides you with a preliminary estimate of your monthly payments. It also includes the loan tenure and the total cost of the loan. If you want to change the tenure, you should contact the bank and ask for a new quote.
Early disbursement
Gold loans are a fast and convenient way to meet your financial needs. This type of loan is available for any individual who owns any amount of gold ornaments or coins. It can be used for different purposes, including personal and business requirements. You can apply for this loan at your nearest branch or through the bank’s online platform. The bank will verify your documentation and appraise the value of your gold. Once approved, you will receive the funds within a day.
Another advantage of the gold loan is its low-interest rate. It is lower than other loans, such as personal loans and home loans. It is also easy to qualify for, even if you have a bad credit score. All you need is to have some gold to pledge as collateral. However, you should ensure that the jewelry you have is authentic and not fake. Otherwise, the loan will be denied.
The loan process for gold loans in Andhra Bank is simple and hassle-free. The bank has a transparent loan process where every charge and fee is stated clearly. Moreover, the charges are minimal and are waived in some cases. You can also prepay your gold loan EMIs at no extra charge.
You can avail a gold loan with Andhra Bank if you have a valid proof of identity and address. You can submit documents such as a PAN card, Aadhar card, driver’s license, or voter card to prove your identity. In addition, you must have a bank account to confirm your address.
You can borrow a maximum of Rs. 1 crore with the Andhra Bank Gold Loan. The maximum tenure of this loan is three months. You can choose the tenure that suits you best and pay a low EMI to save money on interest payments. You can use an EMI calculator to determine how much you will need to repay the EMIs.
Low-interest rate
Gold is one of the most critical assets that Indians hold for various reasons. It is also the most liquid asset and can be used to meet financial emergencies in case of need. This is why many people take loans against gold. These loans have a lower rate of interest than most other types of credit. In addition, the loan amount can be obtained quickly and with minimal documentation. The loan amounts are usually between Rs 10,000 and Rs 2 crores.
In order to avail of this service, a borrower must walk into the nearest Andhra bank branch with the necessary documentation and gold articles. The gold is then evaluated, and the loan is sanctioned within a working day. The bank does not accept any fake or stolen gold for this purpose. This makes it a safe option for those who want to borrow money for unforeseen expenses.
The bank offers a transparent process and discloses all charges upfront. These charges are minimal and may be waived in some cases. It also provides low processing charges for prepayment of the loan. In addition, the bank offers a desirable interest rate for the loan against gold.
Applicants can use an EMI calculator to determine how much they need to repay on their Andhra Bank gold loan. This calculator will show them how much they need to pay per month based on the amount of gold that they have pledged. Moreover, the calculator will also give them a breakdown of all the fees involved in the loan.
Another benefit of the Andhra Bank gold loan is that it does not require any verification of income or salary. This means that borrowers with poor credit scores can also avail of this service. The only requirement is that the gold being used as security must be of good quality and worth the amount being borrowed.
The Andhra Bank has three different EMI options for its gold loan customers. These include Standing Instruction (SI), Electronic Clearing Services (ECS), and Post-Dated Checks (PDC). You can find out more about these options by visiting Dialabank’s website.
No collateral
Gold loan is a type of personal finance that enables the borrower to avail funds for various purposes. These include wedding expenses, meeting financial emergencies, buying consumer durable goods, and so on. The best part about this loan is that it does not require any collateral. This is because the borrower’s gold ornaments secure the funds. In addition, the interest rates on gold loans are also lower than that of other loans.
This loan can be availed easily by just walking into the nearest Andhra Bank branch and providing the required documentation along with the gold articles. Once the gold is evaluated, the bank will sanction the loan amount within a day. In addition, the loan can be paid back in installments. However, one should ensure that the gold pledged for this loan is authentic and of good quality.
One of the main advantages of taking a gold loan is that it requires minimal documentation, unlike home or auto loans. The lender only requires proof of identity and residence, such as a ration card, voter ID, Aadhaar card, and driving license. The documents should be submitted with a photograph and signature.
Another advantage of taking a gold loan is that the credit score of the borrower does not affect the approval process. This is because the loan is backed by gold, which is considered to be less risky than other forms of collateral. However, if the borrower has a poor credit score, they might be required to pay higher interest rates.
The interest rate for a gold loan varies according to the purity and market price of the gold used as security. It is usually about 60-75% of the value of the gold article that has been pledged. The rate may also vary depending on the LTV ratio and tenure of the loan.
Unlike other secured loans, the interest on the gold loan is not fixed and is linked to the base rate. This means that the actual rate will vary with time, but it is likely to be lower than the rate of unsecured loans such as personal loans.
