What are the advantages of NRI gold loans?

NRI gold loans allow non-resident Indians (NRIs) living abroad to obtain loans by providing gold as collateral. Here are some key benefits of availing NRI gold loans:

• Quick Processing: Loan providers can process NRI gold loan applications faster, sometimes in just 1-2 days, as gold is easy to value as collateral. This allows NRIs to get access to funds quickly for emergencies or other needs.
• Attractive Interest Rates: The interest rates on NRI gold loans are typically lower than those of other unsecured loan products, helping NRIs save substantially on interest costs.
• High Loan Amounts: Banks and NBFCs can provide NRI gold loans up to 75% of the market value of gold pledged. This allows NRIs to avail sizeable loan amounts to meet large expenses.
• Flexible Tenures: NRI gold loans have flexible repayment tenures, ranging from a month to a few years. Borrowers can choose a tenure that suits their repayment capability.
• Easy Repayment: Loan providers often offer a variety of repayment facilities like standing instructions, post-dated cheques, RTGS (Real-Time Gross Settlement), etc. NRIs can easily service overseas interests and principals.
• Safety of Gold Articles: Financial institutions pledge gold in secure lockers. This ensures the safety of the ornaments until the loan is closed.