Simple Steps You Need To Follow To Get Gold Loan Almost Instantly
India’s gold loan market is expected to touch a whopping [h2] Rs 4,617 billion by 2022. This would be achieved as the industry would grow at a consistent CAGR of more than 13% for around half a decade. Lenders are focusing on digital channels to improve customer experience and scale up operations. Organized lenders, including NBFCS, comprise 35% of the Indian gold loan market. Even though global gold prices are predicted to fall over the long term, the gold loan market in India is expected to thrive.Gold Loans are sanctioned after verifying few documents and evaluating the mortgaged gold.It is easier to avail of any type of collateral loan because the assets used against the loan are used as an assurance for the loan repayment. Hence getting a loan against gold is convenient as compared to other forms of loans. Since gold is used in crafting ornaments and is an attractive investment destination, there is perpetual demand for the yellow metal in India.In this article, we are going to explore the simple steps which help you get the instant gold loan. Anyone can get cash for gold by following these steps and thus get access to funds.
1) Choose the Right Lender
While selling gold or borrowing money against gold, the lender plays a very prominent role. A lender should be credible. A lender should be known for evaluating gold and storing it safely.Several lenders offer cash for gold or gold loan but there are variations in the services offered. There is no fixed rate on gold transactions hence the customer might get cheated with extra charges.Once you choose the best lender the entire loan process becomes easy. Best lenders understand the needs of the customer and treat customer satisfaction as their ultimate motto.
2) Keep your Documents Ready
Though very few documents are required while applying for a gold loan, keeping them ready helps to hasten the process. Usually, ID and Address proof documents are asked to verify customer credibility.You can check the required documents either at an online portal or contact the lender. This way everything will be kept ready and submitted as soon as documents are asked.
3) Thorough Analysis of Market Value
Lots of people waste their time visiting multiple lenders and enquiring about the value for their gold. Before visiting any lender personally, it is always good to perform a detailed analysis of the market value.Value for per gram gold, LTV (Loan To Value) ratio, Interest rate, Processing charges, etc. can be calculated as part of this analysis. Prepare a chart with the values of several lenders and then decide by comparing other gold loan benefits offered by the lender.
4) Online Facility
Online facilities will help to process the application faster. It mitigates the time and effort in visiting the branch every time you need any information related to the gold loan.Most of the lenders offer cash for gold or gold loan online services to ease the process. Application submission, Document verification, Loan disbursement, etc will be carried out online.Online accounts help to monitor your loan transactions. Hence it is always advised to choose an online gold loan facility to get a quicker loan.
5) Pre valuation of Gold
Before purchasing gold or providing loans against gold, lenders will perform testing and valuation. This involves testing the authenticity and purity of the gold. lenders use computerized programs for this process which helps them to estimate the total value of the gold.It is always better to check valuation with multiple lenders. This way you will get to know the exact value and avoid fraudulence. The gold will not be damaged or affected by the testing, as most NBFCs use standardized tests for the purity check and the daily LTV for accurate valuation of your gold.
6) Custom made Schemes
Most of the lenders have different gold loan based products that are tailor-made to cater to a wider range of customers and suit different financial needs.Such customized schemes would be beneficial for different types of borrowers. Thus, you can check the options and choose the best scheme to suiting your requirements.
7) Safety of Gold
Once after the loan disbursement, the gold will be deposited in the safety locker of the lender. It cannot be accessed by the borrower unless repayment of the loan. Until then it should be safeguarded in robust vaults.Knowing your gold is in safe hands will help you to be relaxed throughout the gold loan tenure. Make sure to check the history of the lender and customer reviews before trusting any lender.