Gold loans are more prevalent now than they were a few decades ago. But as India’s population grows, so does the demand for gold jewelry and ornaments, which has led to a rise in the demand for gold loans. However, there hasn’t been a corresponding rise in supply to match this rise in demand.
Many folks are struggling financially and need assistance paying their bills. The Gold Loan may be a fantastic solution to your problems. However, have these points in mind before applying as they might increase your acceptance rate. For more information, keep reading.
Both chaos and tension have been present at the same time as hope. Many people have lost their employment and have been forced to use their savings or turn to assets like gold jewelry for financial support.
Benefits of gold loan
Instant access to funds
Obtain immediate access to funds. Use the Gold Loan calculator to determine your borrowing limit. Following loan approval, there are only three easy actions to take: apply for funding, plan your repayments, and access your account online.
This loan is one of our most popular investments due to factors including the relatively modest amount of gold needed, flexible repayment alternatives, and competitive interest rates.
Easy and simple documentation
Compared to personal loans, gold loans do not require as much documentation. Only KYC documents are necessary, and you don’t need to provide income documentation if you apply through IFL. One benefit of requesting a gold loan through IFL is this.
Repayment at the end of loan tenure
A Gold Loan can be the best option for you if you don’t have the time to wait for an installment plan. When you need money right away, the Gold Loan is a fantastic solution. There is no lengthy wait time with a gold loan. Depending on what fits best with your schedule, you have the option of repaying in three, six, or twelve months. Regarding how you wish to use the loan, you have a lot of alternatives. Any expense, from more expensive things to minor ones like groceries and gas, can be paid for with a gold loan.
When you entrust International Fine Jewelry with your gold jewelry or ornaments, you may feel safe and secure.
Know the quality of gold eligible for the loan
Know the purity level of the gold you are buying when selecting it for your loan. Better than lower purity is purity that is higher. The value of your loan will depend on the purity level. Jewelry of at least 18 carats of gold or with valuable jewels set into the design will be accepted for loans. Loan applications won’t be granted for jewelry containing precious jewels embedded in the design in addition to the weight of the jewelry.
Considering which form of loan is eligible for the loan
In India, accepting gold jewelry can motivate a borrower to make their loan repayment on time. Such decorations have a higher sentimental value than those made of other precious metals like silver and gold.
Gold loan borrowers need to be careful of their creditworthiness. For a loan, banks will not accept gold bars or gold bullion. Before choosing which bank to work with, make sure to compare interest rates online since they might differ significantly between lenders. Check out our list of alternate borrowing options, such as pawn shops and pawnbrokers, if your lender won’t accept gold coins as collateral.
Not calculating LTV
The value of the asset to be used as collateral for a loan is divided by the loan’s value to determine the LTV. LTV is used by creditors to determine the risk of lending to a borrower. It’s critical to realize that LTV isn’t always a straight indicator of your creditworthiness because other factors may influence how dangerous or safe your company is.