Gold loan is one of the most convenient secured loan options in India.A borrower can simply leverage their gold assets as collateral and get acertain percentage of its valuation as per the current market price as credit. This borrowed amount can be repaid with flexible payment options over a specified tenor and at competitive interest rates.
However, borrowers must be aware of the complete gold loan process to makean informed decision.
Everything about gold loan process
- Application process
To apply for a goldloan, a borrower can either visit the nearest branch of a reputedfinancial institution or else fill in the application form online. Once a goldloan form is submitted, the respective representatives will get in touch for verification and other formalities. Additionally, it is extremely crucial to check gold loan eligibility criteria and required documents before applying fora gold loan.
- Verification and evaluation process
Once documents are submitted, the representatives will verify theseand evaluate the pledged gold to calculate its overall value. For gold loan finance, current market value of gold is the primary determinant factor. Thisverification and evaluation process will finally determine the amount of loanyou will receive against the pledged asset. Higher the approved LTV ratio at a current time, higher will be the loan amount.
- Disbursal and repayment
Once the verification process is completed, approved loan amount willbe disbursed to a borrower's savings account. This borrowed loan amount willthen have to be repaid through EMIs, interest upfront and principal later or bullet payment options within a fixed tenor.
Such an easy and convenient process of loan application anddisbursement also makes gold loans one of the most sought-afterfinancing options for individuals in India.
