What is Gold loan Definition, Is it beneficial to have gold, How to take gold loan, what is gold loan process, Benefits of taking a gold loan. If you want to get answers to all these questions then this article will prove to be very important for you. Today in this article, we are going to tell you what is a gold loan, what are its benefits and how can you take a gold loan. If you want to take a gold loan then this post has been written especially for you.

What is Gold Loan
According to Indian tradition, the importance of gold has not diminished even today. Even today people invest in gold, so usually all middle class families will usually get to see a little bit of gold.

Many people also look at gold from the perspective of a trusted partner in bad times. You must have seen, many people invest their money in bank or buy some other property. At the same time, there are some people who invest their money in gold because the price of gold keeps increasing rapidly.

If we look at the price of gold 20 years ago and the price of gold today, there will be a lot of difference. Let us now come to our main topic and know what is Gold loan?

What is Gold loan?

Gold loan refers to a situation when you pledge your gold jewelry to take a loan. Meaning you can use gold as a loan without selling jewels ornaments. When you repay the loan, the company providing the loan or the bank returns the gold back to you. This is also called gold loan.

Many times there is an emergency in the house when we are in dire need of money. In such a situation, gold kept at home can be very useful for us. We can take a loan against our gold. Interest is payable according to the amount taken in the gold loan. Explain, if you take a gold loan compared to a personal loan, then the rate of interest here is also lower and you get the gold loan easily.

Apart from public banks and private banks, there are many such companies that provide loans in the present time, which you have heard about often. For example, companies like Manapuram Finance and Muthoot Finance offer gold loans. You can get a gold loan from a bank or through a loan company according to your personal needs.

If your situation is not good, there is not enough money then gold loan can prove to be very beneficial for you. Apart from this, if you do not want to take a gold loan, you can also take advantage of it in future by investing in gold like people.

By now you know what is a gold loan and when do you take it. Yes, if you want to take a gold loan by pledging your gold, then let us know how to take a gold loan?

How to take a gold loan?

Taking a gold loan is not a big or difficult task, you can easily take a gold loan. For this, you should have only a few important documents, which are as follows.

  • Application form

  • Identity card, proof of your address

  • PAN Card

  • Photo

Yes, with the help of these documents, you can take a gold loan soon.

By the way, you can take gold loan from any gold loan company or any bank as per your choice . But, for your convenience, we have provided the list of popular loan companies of India. like,

Top loan companies and banks in India


  1. Muthoot Finance

  2. Manappuram Finance

  3. Union Gold Loan

  4. SBI Gold loan

  5. Mahindra Gold Loan

  6. ICICI Gold Loan

  7. HDFC Gold Loan

  8. AXIS Gold Loan

Of these, you can get a gold loan from whichever loan company or bank. But before that, get complete information about them.

Now you also know how to take gold loan, we have also told you about many banks or companies that provide loans. Let us also know what are the benefits of taking a gold loan.

Benefits of taking a gold loan?

Gold loans can be very beneficial for a family when an emergency is required. Suppose you need money, you do not even have a chance of getting money from anywhere, such a gold loan works like a trusted friend.

This also happens, if you take a loan from the bank, then you have to invest that money in the same work for which you took the loan. But it is a great advantage of gold loan that you can use the amount of gold loan according to your need wherever you want, because it is your own money, not someone else's.

Apart from this, you do not need much document to take a gold loan. You can easily take a gold loan with the help of some documents. In today's time, taking a gold loan has become even easier. Because there are so many loan companies in the market that claim that you will be given a gold loan in a few minutes.

The main reason for how we get a gold loan so quickly is that, you take the money by pledging your gems, so the gold loan is approved soon. Another major advantage of gold loan is that the interest rate of gold loan is lower than that of personal loan. Meaning you have to pay less interest. If your civil score is not good, you can still get a gold loan.

How to make gold loan payment? (How to pay Gold Loan)

Gold loan can be repaid in various ways but it is not necessary that all the gold loan companies or banks provide you different options to pay.

The first is EMI. You can pay a gold loan as a personal loan. When you pay through EMI, some part has to be paid in the interest amount and some part is for principal repayment.

Another way to make gold loan payment is that you keep paying the gold loan interest every month and later decide the original payment that is left.

Now you must know what is a gold loan, how to take a gold loan and what are the benefits of taking a gold loan. Let us also know some things that you should know before taking a gold loan.

Things to keep in mind before taking a gold loan

Almost every bank or loan company offering gold loans has different interest rates. Therefore, whenever you take a gold loan from a bank or company, know about that company or bank, what are the interest rates.

Gold loan is a type of fully secured loan and as we told you above, the investment rate in gold loan is also lower as compared to personal loan. So before taking a gold loan, check this also, the rate of interest will be less in a gold loan than in a personal loan.

Also what will be the rate of interest in gold loan? It can be measured on the basis of loan tenure, amount and LTV (loan to value). Let me tell you, LTV is the ratio of loan amount which is given on the total value of the property.

For example, if LTV is low, it means that you will have to pay more installment amount.

Apart from this, these things should also be kept in mind before taking a gold loan.

Pay at certain time

Following the discipline, when you take any other type of loan from the bank, then it is necessary to repay it on a specified date, in the same way even after taking a gold loan. Failure to do so may result in a penalty of two to three percent.

You can also pay by selling gold

If you are thinking of taking a gold loan but you are also afraid that, will I be able to repay the gold loan for so long? So in such a situation, instead of taking a loan, you can get money by selling gold. Because if you do not pay money despite taking gold, then your gold will still be sold, then it is better that you avoid the interest amount.

Short duration

Apart from this, the third main thing is that the repayment period of gold loan is shorter than other loans, so if you feel that you will not be able to repay the gold loan within 1 year, it would be prudent to sell gold.

Other charges

Apart from this, the last important thing is that you may have to pay other things besides interest on the gold loan. So whenever you take a gold loan, what will be the interest rate of the loan? Along with this, you must also know about processing fees, evaluation fees, etc. and additional charges.

Conclusion,

So friends, in this article we told you about gold loan. For example, what is Gold loan, Process, Definition, Scheme? How to take gold loan, what are the advantages of taking a gold loan, etc. Also, we told you about how to pay for a gold loan and what things should be kept in mind before taking a gold loan.

After reading this article till the end, you will have got complete information about gold loan. Apart from this, if you still have any questions or suggestions related to this post, then you can tell in the comment.

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