10 Commonly asked questions regarding a gold loan

A gold loan is a loan secured by gold jewellery that a customer deposits with a gold loan company as collateral. In exchange, the corporation provides the consumer with a loan amount based on the current market value of gold. 

Taking a gold loan is simple and secure, and it has long been a popular financial practice in India. Many people give their gold jewellery to financiers in order to raise finances for an unexpected emergency or even to establish a new business. You can receive a gold loan from both banks and non-banking financial institutions (NBFCs).

Some of the most common questions that many buyers have about gold loans are listed below:

What is a gold loan?

When you use your gold jewellery as collateral to borrow money from a lender for a set period of time. The buyer then repays the loan amount plus the relevant interest rate to the lender bank until the loan term ends.

Who is eligible for a gold loan?

If you are a trader, businessman, salaried employee or self-employed, or a farmer, you can apply for a gold loan. The age requirements differ by the bank, but if you are between the ages of 18 and 60, you can acquire a loan against a gold loan.

How long does it take to get a gold loan approved?

Applying for a gold loan is a straightforward and quick process. If you have all of the required paperwork, you may be able to acquire your gold loan the same day.

To apply for a gold loan, what documents are needed?

When asking for a gold loan, the following documents must be submitted:

Identity Proof/ Pan Card/Aadhar Card /Borrower's Address Proof /Two photographs for gold loan application form to be duly filled out by the applicant.

When is the best time to apply for a gold loan?

Some of the reasons to apply for a gold loan are as follows:

When you require a loan urgently and for a short period of time.

If you want to avoid the time-consuming paperwork that comes with a gold loan, you can do so by providing minimum KYC documentation.

There is no requirement for a CIBIL score or credit history.

If you want to save money on your loans.

A gold loan has no prepayment penalty or processing costs, lowering the overall cost of the loan.

Is there a minimum or maximum amount that can be borrowed for gold?

Gold loans are available from a variety of lenders, with amounts ranging from Rs 10,000 to Rs 20 lakhs. It is possible that it will differ depending on the lender. Some 

Loan requests for more than 20 lakhs may require management approval, depending on the norms of each financial institution.

What are the Options for Repayment?

The gold loan can be repaid in instalments. There are a variety of alternative repayment methods available. You could, for example, pay the interest at the start and the principal at the end of the loan period.

What is the formula for calculating the interest on a gold loan?

The majority of banking organisations charge interest on gold loans. It is calculated using simple interest on the outstanding loan amount.

What Happens If a Borrower Misses a Payment or Is unable to Pay Dues by the Due Date?

Because the gold was pledged as collateral, failing to repay the loan (three consecutive instalments or more) will result in the gold being auctioned off by the bank or financial institution. This is now a non-performing asset that will be liquidated.

What are the advantages of taking a gold loan?

When compared to other sorts of loans, a gold loan has numerous advantages. Speedier processing time, a larger loan-to-value ratio, lower interest rates, the convenience of collateral availability, faster loan disbursal, and reduced eligibility restrictions are all advantages of a gold loan. Other incentives, such as a waiver of the processing charge and insurance coverage, may be available depending on the lender.

Finally, if you require financial aid and are unwilling to sell your jewellery, it is preferable to use it as collateral to repay and obtain a gold loan. It's a fantastic way to receive money quickly when you need it. People prefer gold loans to other types of loans because they have a lower interest rate and are processed more quickly.

Where can I get a doorstep gold loan in Surat?

Obtaining a doorstep gold loan in Surat is quite simple nowadays, but most people are apprehensive to take out a gold loan. One of the main concerns that borrowers have is the safety of their gold. However, you do not need to be concerned about your gold because it is held in secure vaults. Surat has developed into a commercial hub, with sectors such as diamonds, textiles, silk products, and shopping malls. Surat's citizens have no personal time due to the sophisticated corporate and business-centric lifestyle. This makes it difficult for people to find time to run necessary errands. Financial institutions are now giving a doorstep loan in Surat to cater to such busy fund-seekers. 

A Quick Overview of Doorstep Loans

A loan at doorstep is any secured or unsecured credit instrument that is processed at the borrower's desired location. Lenders offer these to give consumers more convenience and the option of getting a loan from the comfort of their own home. This loan is available in a variety of forms from almost every type of financial organisation.

The following are some of the advantages of these loans:

• Processing is done where you are most comfortable, making it a unique experience.

• A simple and painless approval process

• With these credit options, there are no hidden or additional fees.

Though they come in a variety of shapes and sizes, the high rate of interest is the most common feature. If you take out an unsecured loan rather than a secured loan like a gold loan, the interest rate will be significantly greater. This loan, in addition to being secured, might be quite useful to a borrower who requires funds quickly.

The Advantages Of A Secured Loan

Documentation

Only KYC documents and paperwork pertaining to the pledged asset are required. Only KYC documents are required for gold loans.

Interest Rates

The interest rates on secured doorstep loans are rather modest.

Eligibility

When collateral is present, eligibility restrictions are relaxed.

Unsecured Loan

Due to the associated risk and tight eligibility conditions such as a stable monthly income and a CIBIL score above 750, unsecured loans require documentation such as salary verification, ITR return, and bank statement, and interest rates are higher than secured loans.

The Benefits of a Ruptok Gold Loan

While applying for a gold loan and getting approved takes very little time, the long-term commitment is still a hassle. As a result, we've drastically reduced the repayment period, but it's still long enough to be manageable. Aside from that, we provide a slew of other benefits that make getting a gold loan at your doorstep seem like a piece of cake.

LTV Percentage is High

With our gold-backed Surat doorstep loan, you can get a loan-to-value ratio (LTV) of up to 80%. This manner, you may get the most out of your promised gold jewellery while still receiving a significant sum. Check out our gold loan calculator to get a sense of how we'll figure out the LTV for your loan.

Various Repayment Plans

For some people, the traditional EMI form of repayment is not a viable alternative. If you prefer to pay in a different way, you can do so by choosing one of our other flexible repayment plans. We provide ways such as interest prepayment, single bullet payment, and so on.

End-Use Restrictions are not applicable.

You are free to use the loan money as you see fit. You can either utilise the entire amount for one large expense or divide it into multiple smaller ones. There are many reasons why someone might need an emergency loan, and we can help with all of them. 

A gold loan can be used for any financial need, such as a startup, school, marriage, or any medical emergency, and now, thanks to Ruptok's simple gold loan solutions, you can apply for a gold loan in Surat from the convenience of your own home. The entire procedure takes just 30 minutes to complete and can help you get out of any financial situation.

If you live in Surat, don't take a credit product that will cost you a lot of money in interest. Instead, apply for our Surat gold doorstep loan, which is not only simple to utilise but also easy to qualify for. Download our app or visit our Surat-specific website to learn more about how we work.

The Ultimate Guide to Gold Loan

In India, pledging gold to obtain a loan has become commonplace. People pledge their gold jewelry to NBFCs or banks in order to receive money quickly. Nowadays, getting a loan against gold is simple and painless. It is possible to apply for it online by following a few simple procedures. However, like with any loan, full awareness is required prior to entering into a financial agreement. So, in this article, we'll dissect the nitty-gritty of the gold loan so that you can make an informed decision while looking for one.

What kind of people are eligible for a gold loan?

To be qualified for a gold loan, you must meet the following requirements:

 Working as a Salaried,  Self-Employed Professional, Businessman, Farmer, or Trader, for example.

 Age limit: To qualify for a gold loan, you must be between the ages of 18 and 60.

To apply for gold loans, what documents do I need?

When compared to other types of borrowing, gold loans involve the least amount of paperwork. You'll need a few basic documentation for these types of loans, which are listed below:

 Proof of Identity (any of the following):

 Aadhaar card PAN card

 Proof of current address which is your Aadhaar card or PAN.

What kind of gold do you need to put down as a deposit?

The gold loan firms or financial institutions will only accept jewellery-grade gold. Coins/Bars/biscuits/utensils or any other kind of gold are not accepted. Also, keep in mind that the higher the purity of gold, the higher the value and loan amount. The gold purity should be between 18 and 22 karats or higher. If the jewellery you're pledging contains jewels or stones, they won't be valued; just the gold value will be taken into account.

What are the gold loan interest rates?

Because gold loans are secured by your gold assets, the interest rate paid on them is significantly lower. 

When it comes to gold loans, how long do they last?

The term of a gold loan is six months, and it can be renewed without fee for another six months. Because gold loans have such a short term, you must be certain that you will be able to repay the loan on time. If you do not refund your pledged gold within the specified time, you risk losing it.

How much money can I borrow?

After determining the weight and purity of your gold, lenders determine the loan amount. They calculate the 'Loan to Value Ratio,' also known as the 'Loan to Value Ratio.' The majority of lenders give loans of up to 75%-775% of the market value of the pledged gold. Furthermore, the RBI has set a loan-to-value (LTV) ratio of 75 percent for gold loans and has mandated all financial institutions and gold loan NBFCs to lend at this LTV ratio. For example, if the value of your gold is Rs 1 lakh, the maximum loan amount a lender can grant you is Rs 75,000.

 How long does it take to get a gold loan approved?

 The application process for gold is quick and easy. You can acquire your loan in a day if you have all of the required paperwork and meet the lender's eligibility requirements.

 What is the easiest way to repay a gold loan?

In gold loans, debtors are offered numerous repayment choices. There are four repayment alternatives to repay the borrowed amount. These are listed below:

 Regular EMIs: This option allows borrowers to pay off their loan in manageable monthly installments that include both interest and principle.

 Borrowers can return the interest as well as the principal amount in this option, depending on their convenience and affordability. This strategy will enable them to save a significant amount of money in interest.

 Only interest EMI: With this strategy, borrowers can choose to pay only interest during the loan term and pay off the entire principal amount when the loan expires at the end of the term.

Bullet repayment: As per this repayment structure, borrowers need to repay the complete loan amount along with the interest as well as the principal amount at the conclusion of the loan period only.

If you need a gold loan, should you go to a bank or NBFC?

You may find it tough to decide whether to take out a gold loan from a bank or an NBFC because they both provide loans. It all relies on your expectations and needs. If you want characteristics like repayment flexibility or cash against gold in a short period of time, Fintech is a good choice. As per RBI restrictions, NBFCs can only distribute gold loans up to Rs 20,000 in cash.

Because banks normally have a rigorous paperwork process, loan disbursement takes a long time. Second, banks do not pay cash for the loans they have approved. The entire loan amount is transferred to the borrower's bank account, either via check, account transfer, or NEFT/RTGS, depending on the borrower's preference. When you only need a modest quantity of money, the cash alternative is ideal. 

When asking for a gold loan, there are a few things you should keep in mind.

Compare several lenders and find the best deal- Not all lenders have the same product features. As a result, attempt to find a lender with a cheap interest rate.

Check the lender's credibility- Because you're entrusting them with your gold, only use reputable lenders or NBFCs to get a gold loan.

 Check the cost of your loan- Before taking out a gold loan, make sure to check all of the essential costs, such as the processing fee, prepayment penalty, or any other hidden fees, to avoid a nasty surprise later on.

 Examine all of the charges and terms, not simply the loan amount or the EMI cost. Also, analyze the entire cost of your loan and choose the best option based on your needs.

 Don't forget to calculate the gold loan EMI thoroughly—failing to calculate your gold loan EMIs ahead of time will end up costing you more money. Before taking out a gold loan, you should always consult an EMI calculator. It will assist you in determining whether or not you can afford the loan.

 Do not seek a larger loan than is necessary- If you apply for a loan for a larger amount than you qualify for, your application may be rejected. So, before taking out a gold loan, make sure you're eligible first. If you do not apply, you risk losing your gold assets that you have pledged to your lender if you do not repay on time.

 

 

Can a gold loan improve cibil score ?

 

To address the question, yes, a gold loan or credit in general does have an impact on your credit score. Your credit score will increase if you manage your credit or gold loan payments appropriately. People who need money but have a bad credit score might utilize a Gold Loan to help them improve their credit score. Several financial institutions will lend money if appropriate collateral is provided, in this case gold jewelry and products weighing between 18 and 22 carats. Prompt repayment of any loan, including Gold Loan, can greatly improve your credit score. As a result, taking out a Gold Loan and repaying it early or on time will have a better impact on your credit score than taking out an unsecured personal loan. Many people are coping with a low CIBIL score, or no credit score at all. When these people request for a loan, the lender has a tough time determining their creditworthiness. It's a situation similar to that of eggs and chicken. At that moment, taking out a gold loan is the greatest approach to get your credit or payback history off to a positive start. 

What part doescredit score play in a gold loan?

• There is a link between loans and CIBIL scores. The lender considers the credit score to be a significant aspect in determining the creditworthiness of anyone applying for a loan. The situation with gold loans, on the other hand, is a little different. To begin with, it is a secured loan in which the borrower is required to lend their gold ornaments to the bank or financial institution from which they are seeking a loan.

• The CIBIL score can assist you in obtaining large-ticket gold loans that are not limited by banks or financial organizations. They are not the deciding elements in obtaining a gold loan approval; rather, they serve as a foundation for obtaining a large credit facility extension. For people with a poor CIBIL score, it's also known as a Gold loan

• In fact, a borrower's CIBIL score might be improved with the help of a Gold loan. When you need money fast, a gold loan is a better option. It comes with a cheap interest rate, flexible EMI options, and quick disbursement. It can be obtained with very little documents and by promising gold jewellery.

• You may improve your credit score by paying all of your EMIs and interest payments on time and establishing a strong repayment history.

• At Ruptok a gold loan has no credit score requirements. The major criterion for obtaining a gold loan is the value of your valuable gold. Because this is a secured loan, the security of your collateral and its purity are more vital in obtaining speedy approval. 

        The Eligibility Criteria for Gold Loan

At Ruptok, you can apply for a gold loan if you are self-employed, salaried, a businessman, a professional, a farmer, or a merchant.

To apply for a loan, you must be at least 18 years old, and you must be at least 60 years old to apply for a gold loan.

A valid KYC document, such as address and identification evidence, is required.
It is the most suitable financing option for anyone seeking a gold loan with a low Cibil score. 

So, with Ruptok, you may receive a gold loan with a low CIBIL Score and meet all of your financial obligations with ease. In a word, gold loans are one of the fastest-growing trends for obtaining a rapid financial fix in the event of any financial emergency and repairing one's credit score. To
find the greatest gold loan deals, head here.