Gold loans are a popular way to meet short-term financial needs. However, before taking a gold loan, it is essential to understand the process and know your eligibility criteria.
Traditionally, banks and non-banking financial companies (NBFCs) required customers to visit their branches for the entire procedure of gold valuation and documentation. Doorstep Gold loan services allow the whole process to be conducted at home, making it convenient and safe.
Convenience
A gold loan is an excellent option for those looking to get quick cash. The loan can be used for any purpose, from a medical emergency to business expansions. It is also a safe and convenient way to borrow money. With the advent of digital technology, you can now get a doorstep gold loan at home in just a few clicks. This makes it easy for those who are strained on time or those who live far away from the nearest gold loan branch to raise funds without having to travel.
Traditionally, prospective gold loan borrowers would have to visit the bank or NBFC branch to fill out the required documentation and deposit their jewelry for appraisal. This was particularly challenging for those who lived far away from the branches or were unable to travel because of work commitments, children’s school fees, etc. However, many lenders are now offering doorstep gold loan services to make the process more convenient for their customers. This new-age fintech and banks are providing gold loans at home, allowing customers to pledge their jewelry and complete the entire process from start to finish without having to go to a physical bank or NBFC branch.
In order to avail of a gold loan at home, the customer must first apply online through a lender’s website or app. After the application is received, the lender will send an executive to the borrower’s home to evaluate and appraise the jewelry. Once the jewelry is assessed, it will be safely transported to the lender’s gold loan branch for safekeeping and loan disbursement.
Gold-loan at-home services are becoming increasingly popular among consumers. Almost every household in India has gold jewelry, making it a great source of collateral for a secure loan. Moreover, gold is a highly liquid asset, meaning that it can quickly be sold in the market for immediate cash.
Safety
After the pandemic, millions of people were left with a lot of debt as they lost their jobs and businesses. To meet their financial obligations, they borrowed money against their valuable gold articles. This was one of the easiest ways to get access to cash. Today, many banks and NBFCs offer gold loans to their customers. While traditional loans require the customer to visit the branch and complete the documentation process, new-age fintech, and banks have started doorstep gold loan schemes. These gold loan-at-home schemes are a much more convenient and time-saving option for borrowers.
The entire gold loan at-home process takes place in the borrower’s presence. The gold is weighed and valued at their home by an executive, and the loan amount is then credited to their bank account within minutes. The doorstep gold loan scheme eliminates the need to visit the bank, which is ideal for people who don’t want to spend their time traveling or are unable to travel for some reason.
While a gold loan is secure as the collateral is absolute, certain risks come with it. For instance, if the borrower fails to repay the loan, the lender may auction the gold to recover its funds. The NBFC or bank must have customer-oriented norms in place to help their clients in such situations. Having this clause is an excellent way to prevent gold loans from becoming a burden on the borrowers.
The other advantage of a gold loan is that it can be used for any purpose. It can be for a personal emergency, an upcoming business opportunity, or a medical crisis. This type of loan is a safe and quick solution for any credit needs, so it’s worth considering if you’re in need of some extra cash. Just remember to make sure you’re able to pay back the loan in the time frame allotted to you. You don’t want to end up in a worse situation than when you started! This is especially important if you’re planning on using a gold loan for a big purchase.
Low-interest rate
Gold-backed doorstep loans are a safe and convenient credit solution for individuals facing short-term liquidity challenges. This type of loan allows borrowers to pledge their existing gold jewelry in exchange for a fixed amount of money, which can be used to meet any financial requirement, including education, health care, and marriage expenses. The lending process is hassle-free and quick, with minimal documentation requirements and a swift disbursement of funds.
Almost every household in India has gold ornaments that can be used to secure a doorstep loan. These ornaments are usually of high purity, ranging from 18 to 24 carats, and can be used to avail of a substantial amount of money during an emergency. These loan products are offered by a number of lenders, including traditional banks and NBFCs. They also provide flexible tenures and competitive interest rates to attract more borrowers.
Unlike other loan types that require a lot of documents, gold loans are much easier to secure, with the majority of necessary documentation being handled by an authorized representative from the lender. The authorized representative will verify the borrower’s identity and the value of the gold in their presence before approving the loan. The loan will then be disbursed to the borrower’s bank account.
In recent years, many banks and NBFCs have begun offering doorstep gold loan services to make it easier for borrowers to access credit. These services provide convenience and ease of use for customers who prefer to avoid the long queues at traditional branches. In addition, digitized processes allow for faster processing of applications and quicker disbursement of funds.
To apply for a doorstep gold loan, visit the lender’s website or download the mobile application. You will need to provide basic details such as your name, date of birth, and address and submit a copy of a valid ID proof document. You may be asked to provide other documents, such as income proof and ownership certificates, for the gold you wish to pledge as collateral.
Doorstep gold loans are becoming increasingly popular as a way to meet urgent cash needs. They are a safe and easy option for people who need a short-term loan to pay off debt or finance their business. Moreover, these loans have low-interest rates and are easy to repay in equal monthly installments.
Easy repayment
When you avail of a doorstep gold loan, the lender will send an authorized person to your home for verification and to assess the value of your jewelry. Once the process is complete, they will credit your bank account with the approved amount of the loan. The entire procedure usually takes less than 30 minutes.
Unlike other loans, which require a specific purpose, a gold loan can be used for any purpose. This is because it is a secured loan and uses your existing jewelry as collateral. Hence, it is a convenient way to meet financial needs when they arise. It is also easy to qualify for a gold loan because it has minimal documentation requirements. The best part is that you can borrow up to 90% of the value of your jewelry.
Many reputed banks and NBFCs offer doorstep gold loan services. These companies have an extensive network and can provide funds quickly. Moreover, these lenders have some of the lowest interest rates on gold loans. You can even compare their offers online to find the best deal for your situation.
In addition to offering a quick and convenient process, these companies also have flexible repayment options. For instance, you can choose to pay your gold loan in EMIs or repay the principal in full before the tenure’s end. This way, you can reduce the stress of monthly payments and make your loan more affordable.
If you’re thinking of taking a gold loan, be sure to choose a reputable lender with transparent terms and conditions. This way, you can be sure that your money is in safe hands and that your loan will be repaid on time. You should also make sure to have valid documents for verification, such as a driving license or proof of address.
Another benefit of a gold loan is that it can be repaid anytime, without penalty. This flexibility allows borrowers to manage their finances according to the availability of liquidity. This feature is handy for businesspeople who can’t afford to make a large monthly payment but need cash immediately.