Alternatively known as a loan against gold, a person can easily obtain a loan against their gold possessions.
Who is Eligible for Gold Loan?
A person can obtain a Gold Loan (also known as a loan against gold) in less than 30 minutes without the need for several documents or other paperwork because the application process is so simple and quick compared to other types of loans.What is Gold Loan Interest Rate?
Gold Loan interest rate varies according to lenders, but it lies in between 7.35% to 29% P.A. Bank and other financial institutions offers gold loan in between 1500 to 1.5 crores
What would happen If we don’t repay Gold Loan?
Firstly, we should try to pay all instalments on time, because if we don’t pay on time it ruins our CIVIL Score, it will result in Loan would not approved easily in future,If A Person failed to pay Gold Loan instalments, it may lead to the gold being auctioned off by the bank or the financial Institution because at that time gold has become as collateral against the loan.
Conclusion
Gold Loan is best option to take loan but we should think carefully before applying for it. Because If a person failed to repay Loan Then it would lead to auction of your gold article.