In today's time, you don't need to strain your finances to meet emergencies or fulfill your dreams. Most banks and financial institutions have multiple formal and affordable financing options that suit the borrower's needs. These can be categorised into unsecured and secured loans. Unsecured loans involve higher interest rates, and so borrowers go for secured loans by providing the security.
Features of Gold loans
Gold loans primarily involve pledging gold, whether in the form of coins, bullions, ornaments, etc., to avail loans from banks or financial institutions. The features of gold loans include:
1. LTV Ratio:
Loan-to-Value is the ratio of loan against the value of the asset. Gold loans have a higher LTV ratio, and you can easily avail of loans up to 75% of the gold's value
2. Quick Processing:
The gold loan process is relatively simple and involves quick processing and disbursal of the loan amount.
3. Affordable interest rates:
Being a secured loan, gold loans come with affordable interest rates. Gold loan interest rates start at just 11.50% per annum, which is far lesser when compared to unsecured lending arrangements like personal loans with 15-18% interest rate or credit cards with 24-36% interest rates.
4. Insurance coverage to pledged gold:
Your gold is in safe hands after you have availed of thegold loan. The insurance covers gold to avoid any chances of loss to the true owner.
5. Eligibility criteria:
Gold loans have easy-to-fulfill eligibility criteria. The applicant should be aged between 18-60 years. If you fall within this bracket, you can apply for a gold loan with Shriram Finance.
6. Minimum Documentation:
Gold loansrequire minimum documentation for quick processing and disbursal. Following are the documents that you will be required to furnish:
1. Aadhaar Card
2. Identity Proof (Any one of the following: PAN Card, Driving Licence, Passport, Voter ID)
3. Address Proof (Any one of the following: Driving Licence, Passport, Gas Bill with Gas Book)
4. Recent passport-size photograph
5. Any additional documentation as may be required by the bank
What Shriram Finance Gold Loan Offers
Shriram Finance provides the following additional facilities to gold loan applicants:
1. Life insurance cover:
The disbursed amount is covered by life insurance. In case of the demise of the applicant, the loan will be paid off by the insurance cover and the gold pledged as security will be returned to the family.
2. Renewal Facility:
In case you are still in the grip of uncertainties, don't worry. You can renew your gold loan if you have selected Shriram Finance gold loan as your funding partner.
3. EMI and Non-EMI options:
Shriram Finance provides both EMI and Non-EMI repayment options to provide flexibility to the borrowers.
4. No Foreclosure Charges:
If you consider pre-payment at any time, then go ahead without worrying about any charges with Shriram Finance gold loans. There are zero foreclosure charges on prepayment.
What can you do to reduce your gold loan cost?
If you are willing to reduce your gold loan cost, do the following:
1. Compare different institutions:
Comparegold loancosts charged by different institutions. Select the best gold loan that suits your needs. Always go through the list of charges before applying for the loan.
If you have already taken any loan and are considering prepayment, then preferably prepay if there are zero prepayment or foreclosure charges. If charges are applicable, compare them with interest saved due to prepayment and go ahead only if you save money.
3. Good CIBIL score:
It is always recommended to have a good CIBIL score if you want to apply for a loan. It depicts your credit history and performance. A good CIBIL score is instrumental in winning the trust of the bank and can help you get your loan at a lower cost.
4. Proper documentation:
Furnish proper and adequate documentation to your lender while applying for the gold loan. It further increases the chances of getting your loan sanctioned and getting favourable terms.
5. Go for shorter tenures:
If you are unwilling to pay huge interest on your gold loan, go for a shorter tenure. Even though it will increase the EMI amount, the interest component will be significantly reduced in the EMI amount.
During emergencies, put your idle gold into action by availing a gold loan. This is significantly better than the unsecured lending arrangements charging hefty interest rates. Nowadays, you can apply for an online gold loan from your home with just a few clicks. While gold loan valuation plays an important role, Shriram Finance can provide the best LTV ratio and gold loan rate with the most flexible terms. Apply now for Shriram Finance online gold loan.