What are Gold Loans?
Gold loans are secured mortgages, in which items of gold (bars, coins, jewelry etc.) are pledged as security in exchange for a short term cash amount. The mortgage amount can then be used for various purposes such as Home renovation, wedding, education, business capital investment, medical emergence, appliances etc.
Why Gold Loans?
Gold loans have one of the most agile loan distribution processes, and are conducive for short term grants, although they are increasingly being used for long-term purposes as well. They are also generally cheaper than personal loans and debts such as credit card debt, in that they have lesser interest rates. The documentation for Gold loans are usually minimal, and funds are transferred to the desired bank accounts in a matter of hours. Gold loans are particularly useful; when in the face of crisis the consumer wants a mortgage but does not want to depart with his/her hard-earned possessions, he/she has the option of mortgaging the gold in order to meet his/her demand.
Gold loan interest rate and GST applicable
There is a lot of confusion and chaos when it comes to Interest rates on Gold loans. But the fact of the matter is that the interest rates are dependent on factors such as repayment period, mortgage amount, financial lenders, gold amount, quality of gold, among others. This is compounded with GST on Gold Loan applicable on that interest rate, which varies from 2%-3%. The most important component of this puzzle is the financial lender, which has the power to provide you with a cheaper capital and hassle-free process.
Fixating on the lender
Thus, it becomes imperative for the consumer to decide on a lender who has flexible repayment criteria, lesser interest rates with nominal GST Charges, and a very short mortgage distribution turnaround time.
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. Flexible EMIs: SCUF offers customizable gold loan repayment models. Consumers can choose from a variety of options with a plan that aligns with their interests.
2. Simple Interest Rates with nominal GST charges: Shriram Finance is one of those rare financial institutions that offer simple interest charges on Gold Loan, with a token GST amount.
3. Sophisticated Gold loan EMI calculator: SCUF enables consumers to make informed decisions based on quantitative parameters, through its trademark Gold loan EMI calculator. A user can mark the scales of the Mortgage Amount, Interest Rate, and Loan Tenure, and calculate a ballpark around the EMI that he/she has to pay.
4. No foreclosure charges : A mortgage foreclosure is defined as payment of the outstanding amount by the consumer in one go. Shriram Finance does not deduct any charges for the same.
5. Easy Loan Renewal facility: By the end of your gold loan tenure, if you feel the need for a loan again, you can easily opt for a mortgage renewal, with zero charges.
6. An extensive nationwide network: Shriram Finance is standing tall and strong in the retail financial lending market, owing to its consumer-first policy, which in turn, has helped it foster a network of more than 3,600 physical branches across India and an active online presence.
Call for action
Your next step should be to calculate the amount of gold at your disposal, and the tenure you are looking for. Use this information to gauge your estimated EMI amount by leveraging Shriram Finance’s Gold loan calculator. Most likely, the EMI will be feasible for you. You can then connect with the nearest Shriram Finance office, or you can contact Shriram Finance’s representatives through digital channels, details for which are given on their website.
Generally, the GST charges on Interest of Gold loan are low. Shriram Finance offers an even lower interest rate through nominal GST and simple interest fundamentals. So, you can meet your urgent financial requirements through the use of gold in the best way possible, and keep your gold at the end of it all.