How to Take a Gold Loan at Home – Explained

Aug 21, 2020

In the past 3 decades up to 2016, gold’s annual demand in India rose up by over 800%, as projected by Paisa Bazaar. Given such surging demand, India also ranks among countries with the highest consumption of gold. As this streak continues, the utility of gold is also extending from traditional investment, commercial and industrial process to financing.

Gold loans are fast becoming one of the most convenient means to secure urgent financing. The secured nature of the advance makes disbursal against gold as collateral fast. Availability of online gold loan only simplifies this process, with financing made available at your doorstep.

Availability of gold loans from the comfort of your home, addresses your requirements during financial emergencies. The entire process to avail a gold loan from home is convenient and hassle-free.

However, before delving further into the process of availing a gold loan, take a look at how a gold loan works.

How Do Gold Loans Work?

Gold loans are secured advances that individuals can avail by pledging their ornaments, jewellery or any other item made of gold. The amount of loan you can avail against your gold as collateral primarily depends on two factors –

  • The LTV offered by a lender

LTV or Loan to Value ratio is the maximum loan a lender extends as a percentage of the asset value provided as collateral. Thus, if the lender offers a higher LTV, it will be possible to secure funds of a higher value against the pledged gold. For example, pledging gold valued at Rs. 2 Lakh with a lender offering LTV of 60% means you can avail a loan of up to Rs. 1.2 Lakh. Conversely, an LTV of 75% means you can secure funds of up to Rs. 1.5 Lakh on the same gold value.

Lenders offer their online gold loan at high LTV, thus providing you with high-value financing at minimum hassle.

  • The purity of your gold item

Also, the purity of gold pledged plays a crucial role in determining the amount of finance you will be eligible to avail.

Thus, the amount of gold loan, a lender can extend is based on gold valuation as per the following formula –

Net weight x Rate of Gold per Gram x Purity

Based on this, a lender approves an applicant’s gold as per its LTV and the amount sought. You can easily fulfil your funding needs with an urgent loan from Rupeek Fintech Pvt. Ltd. providing one of the highest per gram rates as LTV on their gold loans.

How to Avail a Gold Loan from the Convenience of Home?

Rupeek has brought a first of its kind gold loan delivered right at your home once applied through a simplified online platform. While this doorstep loan is delivered to you, all you need to do is hand over your gold to the duly appointed loan manager visiting your house. Once taken into custody, your gold is safely stored at a nearby bank branch’s vault.

Here are the steps elaborated for availing a gold loan without stepping out of your home –

Step 1 – Apply via an app/website or call

Download Rupeek’s dedicated loan app for this purpose or visit the Rupeek website. This Android app is one of the most suited for easy application. It also boasts of a 4.5+ rating, making it a preferable application mode. Alternatively, you can also place a call at 080 6818 6818 when applying for your gold loan.

Step 2 – Complete the gold valuation process at home

Once applied, Rupeek sends a loan manager to your house to complete the gold valuation process for the online gold loan. After an examination of the asset’s purity, its valuation is completed as per the current per gram rate of gold in the market.

During this, the loan manager also ensures to complete the KYC process by collecting minimal documents like your identity and address proof.

Step 3 – Receive fund disbursal in your account instantly

Once the gold’s valuation is complete, and the loan amount decided, the possession of this asset is secured by the loan manager. He/she then sends a request for fund release to the NBFC. Following this, the approved loan amount is immediately disbursed to your bank account. Right from the valuation of gold at your doorstep to loan disbursal, the entire process is completed within 30 minutes.

It is thus a quick and hassle-free process of availing a gold loan. Note that the loan manager leaves your house with the pledged gold only after the loan amount is credited to you and confirmation is received.

The gold so collected is then deposited in a secure bank vault at the nearest partner branch. Further, 24×7 surveillance at such a facility ensures your gold asset remains safely stored. You can regain possession of your gold after a total repayment of the loan liability.

Rupeek Fintech Pvt. Ltd., one of the online gold loan providers serving customers with a first-in-market experience, also has over 1 lakh customers. It serves 11 major cities in India with the quick, doorstep financing option. Also, with one of the best interest rates, they make repayment affordable too.

Now that you know the complete process to receive a gold loan from the comfort of your home, take a look at some advantages that make it a suitable financing option.

Benefits that Make Gold Loan a Suitable Funding Option

  • No end-use restriction

Gold loans are advances that do not come with any end-use restriction. You can thus avail the advances and put it to diverse utility as per your requirement. Fulfil both personal and professional funding needs with ease by pledging your gold and raising necessary finance at minimum hassle.

  • Convenient repayment options and low interest rates

With reputed lenders, you can repay your gold loan conveniently by choosing from flexible options. Like, instead of paying instalments monthly, you can opt to defer the repayment up to the tenure’s end and thereby make bullet payment. In this case, you will only need to pay the applicable interest amount on a monthly basis.

Plus, the secured nature of financing also reduces the lenders’ risk and allows them to extend the loan at lower rates of interest, thereby making repayment affordable. Rupeek gold loan schemes start as low as 0.89% interest per month.

It thus imparts borrowers with a convenience to manage their finances as per the availability of liquidity.

  • Flexibility  in tenure

An online gold loan also comes with the flexibility in tenure, thus allowing for effective repayment. With Rupeek, you can opt for a short term ranging between 6 months and 1 year, which can allow you to become debt-free within a short span.

Utilise the equity stored in your gold jewellery or ornament to raise finance. Consider your funding requirement and apply for an online gold loan accordingly to receive instant approval and quick disbursal, all without any need to step out of your house.