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Being the world’s largest gold importer, India soaks up to one third of the gold’s supply every year. Not only is it an integral component of Indian culture as well as festivities but it is also considered to be one of the best forms of investments. There are many different manners by which a person can invest in this precious metal. It may be by directly purchasing physical assets such as bullion bars, coins, bars or it may be through mutual funds or ETF’s (Exchange Traded Fund). This commodity is considered to be a hedge or even a harbour against any form of economic, political or social fiat currency rates. There are many banks which offer loans against gold which are designed in such a manner so as to provide liquidity of this precious metal. So how does this work? A person submits their ornaments as a pledge for the loan that is given. The bank maintains the ornaments as a source of security with them in a locker at the bank. In this way, a person can make use of idle ornaments which are lying with them. These loans are also known as ‘loans against gold’. It is an excellent option for people who require funds urgently. These loans are known to be completely hassle-free and a person can merely walk into the bank, submit their ornaments and avail the loan. There is simplified paperwork and easy payment options for these types of loans. Besides this, there are attractive interest rates as well as LTV (loan-to-value). In this manner, a person need not opt for a personal or even a business loan. These loans are given at the current rate of the precious metal in the market and it only takes a few minutes to get instant cash. The amount that is given depends on the purity as well as the net weight of this precious metal. There are a range of schemes that a person can avail from so as to meet one’s requirements. Check your Loan against Gold Eligibility, A person has to submit a recent ID form. This can be a ration card/voter’s card/passport No. or even a driving licence. Besides this, they have to submit a document of their residential proof. There are no time-consuming formalities. These types of loans are cheaper forms of loans than personal or business loans. Repayment can be stretched as per one’s convenience with the only exception being that the interest has to be paid periodically. These loans are open to anybody, regardless of their age (although minors are not eligible). These loans can be repaid at the end of the tenure and there is no hassle of servicing EMI’s every single month. These repayments can be made in the form of cash, DD or cheque. A person looking out for these types of loans generally should look for security, transparency and a good choice of loan product to suit their requirements. It is very important to check whether there are any hidden costs. When it comes to security, everyone wants their ornaments well-protected. There should be a good internal system as well as procedures of the company so that there is no scope for any mala fide actions.
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