A gold ornaments are not just a priced possession or an investment but also a good way to secure funds. Indian people have a sweet spot for yellow metal; therefore, it is one of the largest gold importers of the globe. It also provides you the sense of financial security at the times of emergencies by selling your gold jewellery to meet the obligations. Nowadays, you need not to sell your precious metal as you can take a loan against it. Here in this article, you will come to know how to use your gold ornaments to get gold loan.

As per name, a “Gold Loan“ helps you to borrow money by pledging your priced possession with the lender. One can repay the loan amount within the fixed time period and can get your gold back from the particular lender. The financial institutions usually give loans of only a fixed percentage of the market price of gold but one is not allowed to borrow money of the entire value of the gold you put as collateral. In case, you are facing a financial crunch, a gold loan makes much sense.

A loan against gold unlike other loans has a minimum set of eligibility requirements. You only need to be 21 years old and should be the genuine owner of the jewellery. The financial institutions does not require to consider factors as such your income and credit score as you are keeping your gold as collateral against the loan money. In case, you are unable to repay the loan, the particular lender has the right to auction your jewellery to recover the dues.

Gold loan is a secured type of borrowing as the application process is very quick. Even, when you “Apply For Gold Loan“ the amount will get disbursed on the same day you apply for it. to avail this loan, you can either visit to a nearest branch of the selected lender or you can apply it online through the website. You just have to fill in the application form and upload the documents such as ID proof, residence proof to take the loan. The maximum amount of loan is calculated depending upon the value of your gold. If you get approved the amount will get disbursed in few hours after applying it.

Most of the lenders only accept the yellow metal with the purity ranging between 22 to 24 carats. Few lenders also accept gold bars and coins with a purity of 99.99%. It is a short-term loan with a short period of time. All lenders have their own minimum and maximum borrowing limits for the loan. The interest rate on the gold loan is minimum than other loans depending upon the amount you borrow.

Life is uncertain, so there are several events when you need quick funds that you might not readily have but if you have gold ornaments, a gold loan can be an excellent option. Gold loan is one of the convenient ways to access needed funds to meet your emergencies.