Gold loan in India is offered by several reputed banks in India. It is a “Loan Against Gold Jewelry“ or gold coins and bars. Gold coins and bars fetch a higher loan amount than jewelry. If you are facing a financial crisis and need a quick solution to meet your financial requirements and cannot opt for a personal loan due to low credit score, then you can opt for the ornaments mortgage instead. It is processed as quickly as it can be in a business day. Though the interest rates differ from, you can use the money while the bank keeps your jewelry in a safety vault.

You can apply it online or visit your nearest bank to know more about the offers. When applying for a “Loan Against Your Ornaments“ the charges you for processing your application fee and for jewelry valuation. Once it is processed and the jewelry value has been decided on, you sign documents and receive the money while the bank becomes the custodian of your ornaments until you pay off the loan. The repayment tenure is usually between 12-18 months.

The Amount Offered Against Gold

The amount is depends entirely on the amount of gold you have deposited at the bank; its form, its purity and obviously your income. Your income helps the bank to assess your ability to repay the debt. Once you pay off the entire debt, the bank will return you the jewelry. The advance granted is usually 60% of the value of gold.

What Happens When You Fail To Repay The Debt?

If you ever fail to pay the amount loaned to you, the bank will seize your jewelry and will have the right to sell the jewelry to recover the entire debt. You cannot sue the bank in this case, because you have already signed documents agreeing to the terms.

Documents Required

To avail it, you will be required to submit some documents.

• They need your identity proof, your address proof, your PAN Card and finally a photograph. As these are most important documents to check your eligibility.

• You will be required to sign a few documents in order to process the loan. Make sure that you read each and every line that is printed on that document.

• Fill out the form yourself; do not let the executives fill out the form for you.

Few Things To Note Before You Apply

Before you send in your application check the current gold rate to make sure you are not being cheated and you get the best price possible. It is a misconception that you do not need to move an inch if you apply for it online. You have to visit the bank and safe lock the ornaments. They will not provide you with a pickup service. Though applying for it online saves you the huge amount of paperwork and the waiting in the queues for long hours.