The unprecedented COVID-19 pandemic has crashed economies, inducing financial instabilities in businesses. Millions of people have lost their jobs and are lack funds to meet their immediate financial requirements. In such cases, people opt for loans to achieve their goals without compromising their finances.
A gold loan is a secured loan offered by banks and non-banking financial institutions to both salaried and self-employed individuals. It requires you to pledge your gold jewelry, bars, or coins as security. The best part is, you can get a lower gold loan interest rate as the lender is assured to get repaid.
Much of a gold loan’s popularity stems from the fact that it serves multiple purposes. You can apply for a gold loan and meet requirements such as medical emergency, college fees, vacation, travel, and more.
Advantages of acquiring a gold loan
- It is the most secured personal loan available in the market as the borrower’s gold ornaments are pledged as security.
- You can use an online gold loan calculator to ascertain gold loan interest rates specific to your needs.
- Unlike other personal loans, there is minimum documentation required to apply for gold finance.
- Anyone with possession of gold jewelry can apply for a personal gold loan to meet their needs.
- Your gold loan can get approved within 24 hours after the valuation of your gold and submission of relevant KYC documents.
- You can improve your CIBIL credit score by availing yourself of an affordable repayment option.
- The principal loan amount is calculated based on the value of your gold, and as the gold rate per gram is always on the rise, you will likely receive a higher loan amount.
Different ways to make a successful personal gold loan application
A successful personal gold loan application is subject to the provision of all necessary information and relevant documents to the lender, which eventually leads to the approval of your gold loan application. Although it is easy to apply for a personal gold loan, sometimes your application can get rejected by the lender, even if you make petty mistakes while filling the application form or while submitting your credit profile.
We have provided the underlying tips for you to make a successful personal gold loan application.
- Ensure your eligibility
Another way to make your gold personal loan application successful is by checking the eligibility criteria set by your lender. Every lender has different criteria. The common eligibility criteria are based on minimum annual income, age limit, type of employment, credit score, and more.
Lenders publish their requirements on their websites. You can visit your lender’s web portal to know their eligibility criteria.
- Provide correct and honest information
A personal gold loan application includes your name, contact number, address, annual income, PAN number, employment types, etc. You have to ensure that the information you provide is correct and honest to the best of your knowledge.
- Furnish accurate documents
Your gold loan application can get rejected instantly if you do not submit relevant and accurate documents. If your documents do not match the information you provide on the application form, it will lead to rejection. Therefore, submitting relevant documents is crucial to get your loan application approved.
- Assess your affordability to repay the loan
It is imperative to assess if you can afford to repay your loan amount with gold loan interest. The personal gold loan amount is usually repaid in EMIs. So, before applying for a gold loan, factor in your monthly debt obligations while evaluating your affordability to make the EMI payments.
Assessing your affordability to repay enables you to plan your budget better. You can use the gold loan calculator to know how much you need to repay as EMI and for how long.
A gold loan is the best option to get instant money and meet your immediate financial requirements. However, you must maintain a credit score above 750, furnish relevant documents and provide correct information on your application to make a successful personal gold loan application.