For Indians, buying gold is more than just an investment. It is a sentimental purchase that is considered auspicious, tying in closely with the idea of well-being. People buy gold for festivities, religious reasons as well as for marriage. Given this value that gold has, individuals often store jewelry and other assets in a gold locker in banks for safe-keeping.
What is a Gold Bank Locker?
Storing valuable assets at home means you have to be extra vigilant about their safety. Unexpected circumstances such as theft, a sudden fire or damage to your residence could put your gold assets at risk. Keeping gold in a bank locker or other financial institution could ensure the safety of your gold assets.
A gold bank locker is a facility that banks provide to their customers to store valuables at an additional cost. Gold lockers in banks are housed in high-safety vaults, usually protected with a hardened steel door that restricts their access. Every customer is given an individual key that allows them access to their locker. The bank retains another key, in case you misplace your own.
Five Things to Know About Gold Bank Locker Facilities
1. Gold Locker Charges
Bank locker facilities are only available to existing customers. Even for them, this comes as an additional cost in the form of gold locker charges. Taking a gold locker in a bank on rent does not come cheap. Gold bank locker charges rates can go as high as ₹9,000 plus GST every year for an extra-large locker.
While renting a gold bank locker, you will have to nominate one other person to take legal access to your assets in case of your demise. If a locker has two or more owners, then the nominee will still get access to your share of assets in the event of your demise. In the absence of a nominee, the assets will go to a legal heir.
While banks are safer for valuable storage of your gold assets compared to your home, banks are not liable for any loss in case of theft, floods, fire, earthquakes, war or other incidents that are beyond the control of the bank. This means that storage is at your own risk. However, in case of loss or damage to assets due to the bank’s negligence, you will be eligible for compensation. One way to take on this additional risk is to get gold bank locker insurance.
Any individual, corporation, association or trust can avail gold locker in India at the prevailing gold locker prices. However, they must be a pre-existing customer with the bank.
5. Waiting Time
The demand for gold lockers in India is high, given that most people invest in physical forms of the yellow metal, be it jewelry, coins, or blocks. Banks provide the locker facilities on a first-come basis. Banks will maintain a waiting list in case a locker is not available when you apply for one.
How to Avail a Gold Locker in India?
Applying for a gold bank locker is simple. All you have to do is fill up an application form, submit KYC documents and sign a locker agreement. Banks will also require you to pay the gold locker charges in advance for a year, after which the amount will be charged annually, if you choose to continue. You can place a standing instruction for the amount to be deducted from your account directly.
While choosing a bank locker facility, it may be wise to keep in mind the location of the facility. Since you will have to physically access the assets when you need them, find a facility close to your residence or office.
A gold loan to protect your gold
Instead of opting for a gold locker facility to protect your ornaments, you can consider taking a gold loan online and enjoying a plethora of benefits offered by a gold loan. Not only will your gold be protected in a bank, but you will also have a financial safety net to rely on in the form of cash in your account or a credit line. You can avail a gold loan for multiple purposes. When you apply for a gold loan, you have to hand over your gold assets as collateral. The bank or the financial institution is in charge of the safe-keeping of your gold. In times of a financial emergency, taking a gold loan has a dual advantage: it can give you liquid cash without having to sell your assets, and it guarantees the safety of your gold. In addition to this, the processing time is fast as documents required for a gold loan are very few.
With a Rupeek gold loan, your gold assets are completely protected, with free 100% insurance cover to assure safety under any circumstance. Once your loan is sanctioned, your gold assets are picked up at your doorstep by a Rupeek executive, who is then in-charge of its safe-keeping. Rupeek’s gold loan schemes are backed by the best of banks in India, come at affordable rates, are disbursed within 24 hours and can be used for a variety of reasons. So, what are you waiting for? Avail a gold loan online today!