Meet Meena, a hardworking single mother in Mumbai. When her son, Akash, fell ill and needed urgent surgery, Meena was faced with a hefty medical bill. While she had a steady income from her job as a tailor, it wasn't enough to cover the entire cost upfront. Meena didn't have a credit card, and applying for a traditional loan with her moderate income seemed time-consuming and uncertain.
Meena had a gold necklace passed down from her grandmother, a beautiful piece, but not something she wore regularly. Realizing the gold's potential to help her son, Meena decided to explore a gold loan.
Gold loans, have been a financial lifeline for millions in India and around the world. Shriram Finance's gold loan scheme allow you to leverage the value of your gold jewellery and access quick fund during tough times.
Key Highlights
|
Understanding Gold Loans
A gold loan is a secured loan where you borrow money from a lender by using your gold jewellery as collateral. The lender assesses the weight and purity of your gold, determines its current market value, and offers you a loan amount typically up to 75% of that value. You get the fund, and your gold is securely stored with the lender until you repay the loan amount along with the interest. Once the loan is settled, you get your gold back. is one of the leading gold loan solution providers in the country.
Benefits of Gold Loans
- Easy Eligibility: With no requirement for a or steady income proof, gold loans are easier to qualify for. As long as you have gold jewellery of sufficient value, you can apply for a loan.
- Quick Disbursement: The loan approval process for gold loans is swift. Once the value of your gold is determined, you can receive the loan amount within the same day or the next business day. This is a major advantage when you need urgent funds for emergencies or time-sensitive needs. Shriram Finance's secure lets you skip the long lines, and the competitive rates ensure you get the most out of your gold.
- Competitive Interest Rates: Compared to unsecured loans like personal loans or credit card loans, gold loans come with attractive interest rates. Since the loan is secured by your gold, the lender considers it less risky and offers a lower interest rate.
- Flexible Repayment Options: Many lenders offer flexible repayment options for gold loans. You can choose to pay interest only initially and repay the principal later or opt for equated monthly instalments (EMIs) that fit your budget.
- Safe Gold Storage: When you take a gold loan, the lender securely stores your gold in insured vaults. This gives you peace of mind, knowing your valuables are safe while you use the loan amount.
- Utilizing Idle Assets: A gold loan allows you to convert that idle asset into usable fund for various needs. It's a way to get some financial benefit from something you might not be using regularly. Get the value of your gold with Shriram Finance's hassle-free gold loan
- No Restriction on Use: Unlike some loans that have restrictions on how you can use the funds, there are generally no limitations on how you can utilize the money from a gold loan.
Things to Consider Before Taking a Gold Loan
- Loan-to-Value Ratio (LTV): Remember, the loan amount you receive will be a percentage of your gold's market value, typically up to 75%. So, the higher the gold value, the bigger the loan you can secure.
- Repayment Discipline: Missing loan repayments can be costly. Interest accumulates, and if you default for a prolonged period, the lender might auction your gold to recover due.
Gold Loan Eligibility
Gold loan eligibility is generally quite relaxed compared to other loans. Here's the gist:
- Age: Minimum age is typically 18, and an upper limit can range around 65-70 depending on the lender.
- Occupation: Usually open to salaried, self-employed, homemakers, pensioners, and even students (with certain limitations).
- Credit Score: No credit check is required, as the loan is secured by your gold.
- Gold: You need to have gold jewellery (18-22 carat purity is common) to pledge as collateral.
- Documents: Basic KYC documents like ID and address proof are required.
Online gold loan application
Online gold loan applications offer a faster and more convenient way to access fund. Simply fill out a form on the lender's website, upload pictures of your gold jewellery, and schedule a pickup or visit a branch for valuation. Once your gold is assessed and approved online, the loan amount is deposited directly into your account, often within a day or two. This streamlined process makes online gold loans a great option for those who need quick and hassle-free access to funds.
What Are the Advantages of Gold Loans?
Gold isn't just beautiful; it can also serve as a financial lifeline. A gold loan scheme allows you to leverage the value of your gold jewelry to access quick funds during tough times. Here’s why a gold loan might be the perfect solution for you:
- Fast and Easy Processing: With gold loans, you can skip lengthy application procedures. Gold loans typically offer a hassle-free online application process with minimal documentation requirements.
- Easy Liquidity: Borrowers can access up to 75% of their gold's market value, providing essential funds for emergencies, medical expenses, or educational needs
- Competitive Interest Rates: Compared to traditional unsecured loans, gold loans generally come with lower interest rates, making them a cost-effective borrowing option.
- Flexible Repayment Options: You may choose a repayment plan that fits your budget. Options may include interest-only payments initially or spreading the loan amount across convenient EMIs.
- Safe and Secure Storage: Your gold is stored securely in insured vaults, ensuring peace of mind while you utilize the loan.
- Quick Approvals: Loan applications are often reviewed and approved swiftly, sometimes within the same da
- Straightforward Eligibility Criteria: Unlike other loan types that require a high credit score, gold loans are accessible to a wider range of individuals, making them easier to obtain
Using Gold Loans Wisely
Gold loans are a convenient financial tool, but it's crucial to use them wisely. Here are some ideal scenarios:
- Meeting urgent financial needs: Gold loans can be a quick solution for unexpected medical bills, sudden home repairs, or other emergencies.
- Consolidating debt: If you're struggling with high-interest debts, a gold loan can help consolidate them into a single, lower-interest loan, simplifying your repayments.
- Funding short-term goals: Gold loans can bridge the gap for short-term goals like a down payment on a two-wheeler or financing a skill development course.
Bonus Tip: Consider using a gold loan EMI calculator available online. This helps you estimate your monthly repayment amount based on the loan amount, interest rate, and tenure. It allows you to plan your finances effectively and avoid borrowing more than you can comfortably repay.
