Get highest per gram rate with Shriram Gold Loan
Interest Rates Now Starting Only at 10%*
Quick Loan Disbursal
Flexible Repayment options
No Credit Check Required
Todays Max lending rate:
Gold Loan Features And Benefits
Gold has been an important source of wealth and security in India. Beyond its cultural and sentimental value, gold can also serve as a reliable financial resource in times of need. Shriram Finance offers a seamless and efficient solution to leverage your gold assets through its gold loan services. Let’s delve into the features and benefits of gold loans from Shriram Finance to help you make an informed decision.
Gold Loan Features
Shriram Finance provides a host of features on gold loans, designed to ensure a hassle-free borrowing experience. Here’s are the key features of gold loan:
High Loan-to-Value (LTV) Ratio
Borrow up to 75%* of your gold’s market value.
Attractive Interest Rates
Interest rates start as low as (10%* p.a.).
Minimal Documentation
The process requires only basic KYC verification, making it simple and quick.
Flexible Repayment Options
Choose from periodic, bullet, or partial payments based on your convenience.
Quick Disbursal
Enjoy fast approvals and prompt disbursals for immediate financial needs.
No Income Proof Required
Loans are granted solely on the value of your pledged gold.
Secure Storage of Gold
Your gold is safely stored in secure vaults during the loan tenure.
Online Application Process
Apply from the comfort of your home with a streamlined digital process.
Gold Loan Benefits
The benefits of Shriram Gold Loan go beyond just financial assistance:
Access to Quick Funds Without Selling Gold
Retain ownership of your gold while meeting urgent monetary needs.
Lower Interest Rates Compared to Unsecured Loans
Since the loan is secured against gold, interest rates are significantly lower than personal loans or credit cards.
Flexible Repayment Terms
Pay interest only for the active loan period, enhancing cash flow management.
No End-Use Restrictions
Use the funds for any purpose—be it medical emergencies, education, business expansion, or weddings.
Factors Affecting Gold Loan Interest Rates
Gold loan interest rates are determined through several factors. Let’s understand them in detail:
Gold Purity
Higher purity increases the loan-to-value ratio, potentially reducing interest rates.
Loan Amount
Larger loans may offer different terms compared to smaller amounts.
Repayment Frequency
Opting for monthly or quarterly repayments can impact overall costs.
Market Price of Gold
Fluctuations in gold prices affect the value of collateral and, consequently, the interest rate.
Things to Keep in Mind When Choosing a Gold Loan
Before applying for a gold loan, consider these essential factors:
Repayment Options
Evaluate flexible repayment plans that align with your financial capabilities.
Interest Rates and Charges
Compare rates and be mindful of additional fees like processing charges or prepayment penalties.
Documentation Requirements
Keep basic KYC documents ready for a smooth application process.
Loan Utilisation Plan
Plan how you will use the funds and manage repayments effectively.
FAQs
What are the advantages of a gold loan over other types of loans?
Benefits of loan against gold include:
- Lower Interest Rates
- Quick Processing
- No Credit Score Requirement
- No Income Proof Required
- Flexible Repayment Options
- Retain Gold Ownership
- High Loan-to-Value Ratio
Can I extend the loan tenure if needed?
While you cannot extend the gold loan tenure you can renew the loan twice, subject to the terms and conditions of the gold loan.
What are the key features of Shriram Gold Loan?
The key features of gold loans from Shriram Finance includes:
- High loan value up to 75%* of gold's market price.
- Enjoy minimum loan duration of 7 days* if you close the loan early.
- Competitive and attractive interest rates.
- Quick approval and disbursal.
- Flexible repayment tenure.
What happens if I default on a gold loan?
If you default on a gold loan, here’s what typically happens:
- Notification: You will be notified of the default and will be provided a grace period to make the necessary repayments.
- Gold Auction: If the loan remains unpaid, the gold will be auctioned to recover the outstanding amount.
- Impact on Credit Score: Defaulting on a gold loan may negatively impact your credit score, affecting your ability to secure future loans.
- Additional Charges: You may incur additional fees or charges due to the default, increasing the total amount you owe.
What is the loan-to-value (LTV) ratio offered in gold loans?
The loan-to-value ratio offered for Shriram Gold Loan is up to 75%* of the gold value.
What are the benefits of a gold loan?
The benefits of a gold loan are:
- Access to Funds Without Selling Gold
- Lower Interest Rates Compared to Unsecured Loans
- No Impact on Credit Score
- Flexible Repayment Terms
- Convenient Branch Network
- No End-Use Restrictions
Why Shriram Finance Is The Best Financial Partner For Your Gold Loan Requirement
45+Years of Trust
90 Lakhs+Satisfied Customer
3500+Branches Nationwide
25,000Committed Employees
Low Processing Charges & Quick Loan Disbursals on Gold Loan
