In India, it is quite common that people pledge their gold and silver jewellery to different banks, financiers or pawn shops to obtain funds for personal (like paying urgent medical bills) or financial needs (like setting up a new business). It is a relatively simple process since not much documentation is involved. It is effortless to get a loan against gold products (within a few minutes, actually).
Some of the most common scenarios where loan against jewellery come in handy are:
- Urgent payment of emergency medical expenses
- Investing in a new small business(SME), startup or small enterprise
- Investing in a new small business(SME), startup or small enterprise
- Paying for higher education funds
- Paying for a two-wheeler(or any other automobile) downpayment
- For buying any essential but costly home appliances
- Miscellaneous
Taking a gold loan is a much better proposition in terms of interest rates since it offers much lower rates than conventional personal loans. Thus, saving some precious hard-earned money for the customer. On average, you will get as much as 75% of pledged gold’s value as the mortgage amount from Shriram Finance Gold Loan plans. Till now, we only discussed the benefits and use cases of pledging gold/silver jewellery. But in this article, we will also shed some much-needed light on the needs and processes involved with releasing a part of the pledged gold.
What is the releasing of pledged gold?
We already discussed how to pledge gold and how to get a mortgage against it. Shriram Finance Gold Loan plans provide some crucial benefits and offer aggressive interest rates. Well, releasing gold is the opposite process. You have to ‘buy’ the gold back from the bank/pawnshop/financier at market price.
Why should you release your gold?
- Interest rate increases over time
The interest rates on mortgages against jewellery tend to increase over some time. Thus, making it difficult for most people to buy back their pledged gold after a fair amount of time. In most cases, people lose their hard-earned money during this process. So, time is a crucial factor here.
- Saving something for future
Sometimes the jewellery shops tend to give you lower value for your gold, and you cannot purchase your gold at that price. It must not happen as you should always try to get the right price for your gold. If the interest rates or the mortgage amount percentage is not good for you, you should release your gold and pledge it anywhere else.
Shriram Finance ensures that the gold you keep as a pledge gets you the maximum value. Gold loans are quickly done with significantly less documentation and secured by using authentic identity proofs. A mortgagerenewal facility is also available. In short, Shriram Finance is your one-stop access to all your gold-related financial opportunities. Even additional insurances are also there for the gold owners. Shriram Finance helps you to obtain gold mortgages without any additional charges and no extra hidden costs.
General Problems:
The method to gather funds using pledging gold is an old procedure. We Indians often pledged gold to get quick money during critical conditions. Generally, they use pawnshops, banks, and financiers. If we mortgage gold for a long time, it can cause complications. Hence, it becomes difficult to release this gold due to increased interest and other problems. As a result, people often lose their precious jewellery.
Reason:
1. Many companies trade gold in India. They market themselves as trusted and certified gold buyers. Thus, most people often end up selecting the wrong choice.
2. Jewellery shops sometimes help people by releasing their gold. But, they set-up an unusual price to purchase that piece. It also can result in an unpleasant experience due to the worst services.
Many unauthorised organisations can use this shady situation and put some worst terms & conditions on the customers. Hence, customers can get scammed and lose a large amount of money to get nothing.
We need to find authentic jewellery buyers who can give us the proper service to solve this problem. Either we can pledge the gold with the appropriate value or release them using easy methods. Shriram Finance is one such organisation that can help you to accomplish this difficult job. If we want to release the gold, we must follow the following procedure:
Procedure to release gold:
1. It is required to submit the original documents with proper identification at the first step. It will help the companies fetch crucial information like transaction details, buyer & seller information, etc.
2.Companies and Organizations can then contact the financier or bank and pay the partial amount to release a part of the pledged gold. They can also pay the entire amount to release everything.
3. Now, customers can get the jewellery from the company.
4. Experts will analyse the gold. They will check the purity, condition, quantity and estimate the proper valuation. Customers will receive an offer after deducting the amount used in the release procedure.
5. Here, customers have two options. First, they can collect gold by paying a low-interest EMI. Second, if he/ she is satisfied with the value of the gold, they can sell the gold to the company. The company will initialise a buy-back procedure & the amount will be paid to the customer instantly after verification.
Hence, it is a safe, secure, and transparent process to release the gold without any complications and harassment. Customers can get multiple options to decide what to do with their jewellery. They can take assistance, use customer support and solve their queries from time to ti
Conclusion:
People tend to take a loan against jewellery to get maximum value during critical situations. They can quickly raise the required funds. But the repayment is complex and challenging due to high-interest rates. If customers can’t pay the amount on time, financial organisations can lose that jewellery value. Hence, they directly release the gold at the end. To get the proper value, customers can take the help of Shriram Finance. We can provide a hassle-free release procedure with the least service charges and no hidden costs.
Idle gold can be pledged for raising funds & customers can utilise the money for medical emergencies, education, business expansion, and events. Shriram Finance offers loans against gold at simple interest to fulfil all the financial needs of a customer. Thus, We can provide you with premium service without any additional charges. Also, customers can take the benefits of EMI and NON-EMI schemes. Getting started is simple. We help our customers to get the mortgages in a single day by guiding them regarding documentation and other complexities.
