5 Questions You Must Ask Before Choosing Online Gold Loan

Gold loan is one of the lucrative options that come in handy during the financial crunch. In India, gold is used not only as an ornament but also as an investment tool that can be used anytime to finance your urgent needs. Multiple non-banking financial institutions offer online gold loans to borrowers at competitive interest rates.

While a gold loan offers various benefits, it is crucial to apply for it with caution. Below are five important questions you must ask before choosing gold loan lenders online.

1. Is your gold safe with the lender?

This is the most common doubt that you may have before applying for a loan against gold. As you have to keep your gold items as collateral with the lender, it is essential to ensure its safety. Typically, the non-banking financial institutions keep your gold accessories in a strong vault and under 24/7 surveillance.

Also Read: https://ofertasfacil.com/points-to-consider-before-availing-a-gold-loan

2. Am I eligible to avail of the gold loan?

Before choosing a gold loan, it is necessary to know the eligibility criteria of the concerned lenders. Every NBFC has its eligibility requirements. Therefore, before you choose a particular lender, make sure you satisfy all the conditions as it will increase the chances of loan approval quickly. The age criteria may differ from lender to lender. However, you should be more than 18 years of age to secure a loan against gold.

3. What are the documents needed for a gold loan?

Documents serve as valid proof of the personal and professional information that you provide to the lender. You must gather the necessary documents as it can help you avail of a gold loan on the same day. The documents usually include ID and Address proof, such as Aadhar card, PAN card, Passport, Voter’s ID card, etc.

4. In how much time will the gold loan get disbursed?

Next, you must ask the concerned lender regarding the timeframe for the loan’s disbursal and muthoot finance interest rate calculator. This may vary for different lenders. Some NBFCs may provide you instant cash for gold. On the contrary, some may take a few days or even weeks to credit the loan amount in your account. Hence, you must choose the online gold loan provider according to whether you need it immediately or after some time. Plus, presenting the right documents on time can also speed up your loan approval process.

5. How much loan can I get for my gold?

Since the gold loan is secured in nature, the loan amount depends on the valuation of the gold items deposited as collateral with the lender. However, you don’t get the full amount against your gold. According to RBI, the borrowers are eligible to avail only 75% from NBFCs of the total gold’s value as a loan amount.

Summing up

Not considering the above pointers can make it challenging for you to repay the gold loan on time. Before shortlisting an NBFC, make sure it is reliable and trustworthy. Further, the loan terms must match your financial requirements and repayment capacity.