Want to take a gold loan? Know where you are getting the lowest rate

Generally, gold loans are given for a period of up to 2 years. After this period the loan can be renewed.

Anyone over 18 years of age can take a gold loan.

A gold loan is a good option to meet the need for money in an emergency. The good thing with a Gold loan is that for this neither you need a good credit score nor income proof. Anyone over 18 years of age can take a gold loan. Both banks and non-banking financial companies (NBFCs) offer gold loans.

It comes in some of the cheapest loans. Due to the presence of gold as a guarantee, banks do not face any problem in doing loan loans. Loan disbursal time is also very short.

Some special features of the Gold loan

- What is the loan tenure?

Generally, gold loans are given for a period of up to 2 years. After this period the loan can be renewed.

- Is there security?

In the case of a gold loan, your gold remains as a guarantee. It may contain jewellery, biscuits or coins. Banks give loans up to 80% of the value of the loan. The higher the loan-to-value, the higher the interest rate.

- What is the option of repayment?

In the case of gold loans, the option of repayment is quite flexible. You can give a loan in instalments or opt for full repayment. The option of partial repair is also open.

- What type of credit score is required?

Credit history is not required for a gold loan. But, due to good credit history, gold loan is available at cheaper rates.

- Which documents are required?

Very few documents are required to take a gold loan. To get this loan, only the identity and address should be proof.

- How are the rates of interest?

The gold loan comes in the category of secured loans. It has a lower rate of interest than a personal loan. A personal loan is an unsecured loan. Right now personal loan is available at 10-15%. It depends on the job profile and credit score. At the same time, the interest rates for gold loans start from 7 per cent.