Gold, of all other metals, is the most celebrated in India and most other nations across the globe. Many people own gold in ornaments, biscuits, rings, etc. In previous years’ gold was purchased as a form of tradition, but this has changed. Today, gold and gold ornaments are purchased as a security that can be exchanged if needed. For this sole reason, the service of Gold loans has become one the fastest growing services in contrast to other financial products.
In the event of an unplanned emergency, you can pledge your gold ornaments lying idle at home to avail yourself of a gold loan. To do this, you have to put ornaments of gold in the bank as collateral in return for money. On complete repayment of the gold loan, the gold pledged is returned. Another importance of having a gold loan is the low gold loan interest rate compared to other forms of loans.
As of now, the gold loan rate as per RBI guidelines is given below.
- Lowest Gold Loan Interest Rate- Gold Loan Interest Rate is 9.90%
- Gold loan per gram ranges from Rs. 3,329 to Rs. 3,489 depending on the purity of the gold
- Loan Tenor- 1 day to 36 months
- Processing fee- Up to 1% of the loan amount
- Repayment options- EMI, Bullet Repayment Scheme, and Overdraft
As per the above table, it is evident that the gold loan rate is quite low and more sustainable. With this gold loan, you are not required to submit any proof of income or CIBIL scores, making availing of a gold loan.
Gold loan EMI Calculator
The EMI on a gold loan is the monthly payment you make to the bank or any financial facility to repay your gold loan. The EMI comprises the principal loan amount, and the interest rate charged. Your EMI’s interest component is larger initially and decreases with each monthly instalment. The EMI Calculator allows you to calculate your monthly EMI for a certain loan period at the specified interest rate. The EMI for a loan is determined by the loan amount, interest rate, and loan term:
Gold Loan Amount: Your EMI would be greater if you apply for an online gold loan for a larger loan amount. You would do well to know the gold loan per gram to calculate exactly how much you will end up paying.
Loan Period: Choosing a longer loan tenor can lower your Gold Loan EMI.
Gold Loan Interest Rates: A high EMI is caused by a high-interest rate on a gold loan.
Top Benefits of Taking a Gold Loan
Due to its hassle-free application process and quick disbursal, the popularity of gold loans is increasing. A few benefits of gold loans include:
The gold loan application process is straightforward. On meeting the lender’s eligibility criteria, the amount is quickly disbursed within a few hours.
Low processing fees:
Some lenders don’t charge any handling or prepayment fees on gold loans, while others charge low prices, making it a viable option.
Open to the public:
Gold loans are available to anyone over the age of 18. Provided you have gold; you will get a gold advance regardless of your CIBIL score.
A gold loan is a multipurpose credit that may be used for various things, including funding a wedding, education, vacation, purchasing equipment, remodelling a property, and other acceptable reasons.
The gold interest rate is comparable to other risky credit options such as individual advances. Banks and monetary institutions provide gold advances to businesses in need, such as agriculture, at reduced rates. This is referred to as “farming gold progress.”
Applying for a Gold Loan is a simple and easy process that can be completed from the convenience of your own home. Knowing and calculating the gold loan per gram will allow you to manage your finances before applying for a gold loan. You may apply for an online gold loan by choosing a reputed NBFC’s and filling out a form with the relevant information about yourself and the Gold Loan you want. There are several benefits of availing of a Gold loan instead of other forms of loan, including flexibility of use, lower interest rate, faster processing, the ability to improve credit score, etc.