Gold is precious for an Indian household. Many people buy gold as an investment. They expect it to tide them over during tough times. With gold prices skyrocketing, anyone can get a significant sum of money to help them cover their expenses by taking gold loan. This article will help you understand how to apply for gold loan and its benefits.
Eligibility Criteria
The eligibility criteria for a gold mortgage are as follows:
1. Anyone who is over the age of 18 can apply for one.
2. Most institutions also have an age limit of 60 years at the time of maturity.
3. You will need ID proof and documents that confirm your ownership of the gold.
4. The finance can be sanctioned to business persons, self-employed, and salaried professionals.
5. The gold should be of good quality. Your gold should be between 18 to 22 karats.
Benefits of Applying for a Gold Loan
Here are some benefits of applying for a jewellery loan:
1. Affordable Interest Rates
Most institutions offer jewellery loans at affordable interest rates. For example, you can get a jewellery loan for low CIBIL™ score with Shriram Finance for 11.5% with a flexible payment schedule.
2. Hassle-Free Loan
Financial institutions know that providing jewellery credits is not risky. They can sell the gold easily if a finance is not recovered. That is why most of them offer a hassle-free finance experience with minimum paperwork.
3. Least Amount of Credit Scrutiny
You would not be required to furnish income proof. With gold credits, your credit history will not be scrutinized which is the case with other forms of finances.
4. Safe Custody
Your gold will be in safe hands. An insurance cover for the same will be there for the same.
5. Loan Insured in Case of Applicant’s Death
Death is a certainty in life. In case an unforeseen incident occurs, and an applicant dies, their family will not have to worry about paying back the mortgage. The mortgage is secured by a life insurance cover. The mortgage will be paid back automatically, and the applicant’s family will get the gold back.
6. Loan Renewal
After you pay back a good part of the jewellery loan, you will be eligible for a finance renewal. You can take an additional credit to help you stay afloat and cover your expenses.
7. Gold Loan for Low CIBIL™ Score
A CIBIL™ score assesses your creditworthiness. People with high CIBIL™ scores find it easier to get finances. With jewellery credits, even people with low CIBIL™ scores can get a jewellery credit after credit assessment and branch credit approval. Read on to find out how to improve CIBIL™ score.
8. Improve Credit Score with Gold Loan
A CIBIL™ score determines whether you get finances or not. You must be asking yourself: How to improve credit score with gold loan? If you have a low CIBIL™ score, you can improve it by getting a jewelry loan for low CIBIL™ score and repaying it.
How to Apply for Gold Loan?
Jewellery credits are the answer to how to resolve urgent cash requirements. Most institutions provide jewellery credits online. However, after some verification, you will need to visit the branch to complete the procedure. Every financial institution has a similar procedure. We will discuss how to apply for jewelry loan with Shriram Finance as it is one of the simplest in the market. Here is the procedure:
1. Fill the Application Online
First, you will need to fill out the application online. Basic information like name, phone number, email ID, DoB, Pan number, finance amount required, and pin code will be needed at this stage.
2. Verification Call
A representative of the institution will call you to verify your details. She will explain to you the entire procedure and guide you to the nearest branch.
3. Visit Branch
You will have to visit the branch with all the necessary documents and the gold. After all the verification, your finance will be quickly processed.
4. Loan Disbursement
Once the mortgage is processed, the credit amount will be credited to your bank account.
As you can see above, the procedure is quite simple. You will not have to run from pillar to post to get a jewellery finance. It is a straightforward process. The gold you purchased as an investment should be put to use when needed.
Documents Required
Jewellery credits require only a few documents. You will need to submit the documents by visiting the nearest branch. Here is the list of documents required:
1. KYC Documents
Know Your Customer or KYC is a practice where financial institutions verify your identity, suitability for a finance and assess the risks involved in giving you a credit. For KYC, you will need to submit an Aadhaar and PAN card.
2. Address Proof
Communicating with you on your residential address is preferred as phone numbers, and email addresses can be changed easily. For address proof, submit your Driving License, Passport, or Gas bill with the gas book.
3. Financial Documents
There are some banking documents you will need to submit as financial institutions have to make sure that your cash flow and liquidity are good. For that, you will need to submit your bank statement for the last six months.
Interest Rate and Other Charges
The most significant part of taking a finance is knowing the specifics of one. You should avoid hidden costs and charges. With Shriram Finance, you are safe. There are no hidden costs. There is an easy way to apply and get cash. Here is a breakdown of interest rate and other charges:
Shriram Finance: Money when you need it the most
Shriram finance (SFL) is India's topmost financial lender which is regarded as a financial institution for it’s lower interest rates, quality services, and gold security measures. Shriram Finance values and priorities a seamless and hassle-free consumer experience over anything else. Its Gold loan charges are the lowest among the NBFCs in the financial markets. Starting from 11.5 %, it offers simple interest with a flexible repayment schedule. One can avail of an amount up to 75% of the gold value. And the best part is that the past credit history or income proof plays no major impact on the loan disbursal process.
Features of Shriram Finance Gold Loan Service
1. Interest Rate
The interest rate with Shriram Finance union Finance starts from 11.5%.
2. Processing Fee
Financial institutions have to incur some costs to process your fianance. It charges you a one-time cost to cover the processing cost. The processing fees start at 0.1%.
3. Loan Tenure
You can take short and medium-term credits. The tenure period ranges from 12 months to 36 months.
4. Foreclosing Charges
There are no foreclosing charges when you take a jewellery finance with Shriram Finance.
5. Income Proof
You will not need to submit income proof to take a jewellery credit. Only the bank statement for the last six months will be required.
6. Minimum and Maximum Loan Amount
You can take a loan amount of Rs. 20,000 - Rs. 20,00,000.
7. Monthly Installments
A cash crunch can make it difficult to pay EMI sometimes. However, that should not cause you to worry as we have flexible monthly instalments. However, you can improve your CIBIL™ score by paying back your loan diligently.
As you can see, all the charges have been disclosed. There are no hidden costs. Make use of your available gold.
Conclusion
Gold loans are a great way to raise resources to help you stay afloat. If you are in a financial crunch, there is no point in having idle gold in your house. Utilize it to cover your expenses and run your business. Shriram Finance is a trustworthy lender that provides hassle-free gold loans with affordable interest rates. Apply now.
