Gold Loan

When you require emergency funds or urgent loans, a gold loan is one of the most flexible and hassle-free loans that you can acquire. A few of the benefits that are exclusive to gold loans are listed below:

1. Low loan interest rates - the interest rates are less because of the security of the collateral.
2. Minimal documents – the only documents that the borrower is expected to submit are the address proof and identity proof
3. High-value loan – up to 75% of the market value of the gold can be obtained as the loan and in some cases, up to 90%.
4. No upper limit – the amount that you can obtain is determined by the value of the pledged gold.
5. No requirement of income proof – the borrower can be unemployed or have an irregular income and still get a gold loan.
6. No requirement of credit history – the borrower can have a poor credit score or CIBIL score and still be eligible for the loan.
7. Flexibility – a secured loan is more flexible than other sources of income. The borrower has a variety of repayment schemes to choose from.
8. Speed – the whole transaction, from the loan application to the disbursement of the funds takes place within an hour.

As far as forms of credit go, online gold loans provide a range of peerless flexibility! Here are some of the basic eligibility criteria that you need to meet if you are looking to avail an online gold loan-

1) Since lenders prefer disbursing loans to borrowers that are domiciled within the same geographic boundaries as theirs, you will have to be of Indian nationality and residing in India to avail a loan.

2) You must be an independent major, that is of the age 18 or above

3) Since, usually, Indian lenders do not approve gold coins or bars, the collateral you are looking to secure your loan with has to be gold in the form of jewelry or ornaments.

4) The jewelry you are looking to pledge must be 18 Karat or above (Karat is the measure of the purity of gold)

It is noteworthy that the loan amount you are eligible to receive is bound to vary from the market gold rate. This is due to the fact that lenders don't go by the current market price and instead arrive at the average gold rate based on the rate from the past 30 days.