A gold loan is a type of credit facility that allows individuals to borrow secured loans by pledging their precious gold with a lender as collateral. The pledged collateral can be in the form of jewellery or ornaments or even a gold bar. Many prefer this type of finance, as the gold loan requires minimal paperwork and faster processing. Additionally, any person who holds the yellow metal can avail of the loan regardless of their occupation, salary, and credit score. Let’s understand the ways to apply for a gold loan through an online method.
How can you apply for an Online Gold Loan?
One can apply for a gold loan through the online gold finance platform by lenders or online marketplaces through the online process. Compared to traditional methods, the online gold loan application method is quite convenient, time-saving and straightforward. Nevertheless, one also can check eligibility for gold loans and calculate EMI for gold loans through Muthoot gold loan interest calculator.
Process for applying for a gold loan online:
- Visit the lender’s website or download the lender’s mobile app and fill in your personal information and loan-related criteria.
- Once you fill out the form, the lending institution’s representative would call to check the gold loan’s eligibility factors and the loan requirement.
- The representative will notify you about the loan’s various details, the process, and the necessary documentation.
- The representative will arrange an appointment at the lender’s premises for a branch visit if eligible and interested.
- With the documents and gold jewellery to be mortgaged, you can visit the branch. The gold loan lender will decide to sanction or refuse your loan as the papers are checked, and the eligibility requirements are guaranteed.
- If the loan application is approved, you will receive a letter of sanction containing the loan’s main terms, including the interest rate, processing charge, tenure, and prepayment fees.
- Finally, as per RBI guidelines, the bank will keep the gold safe, and the approved loan sum will be disbursed to your bank account.
Why should you apply for an Online Gold Loan?
While Muthoot gold finance is one of the most convenient credit facilities to opt for, applying for a gold loan online further adds to its convenience. The online application for a gold loan is time-saving and straightforward. It allows one to apply for a gold loan from anywhere according to the borrower’s convenience. Here’s why one can request a gold loan online:
Choosing the best lender: Online application for gold loans enables one to decide the best lender by distinguishing them as per their eligibility and additional fees such as transaction fees, prepayment fees, etc.
Gold loan eligibility check: The online gold loan application offers various eligibility resources for gold loans, such as the gold loan interest calculator. The calculator also allows you to assess the gold loan eligibility based on factors such as the amount of gold, tenure, gold LTV ratio, and today’s gold price. To prepare for their future EMIs, one can also use the gold loan EMI calculator.
The credit score impact: While a gold loan application does not require a good credit score, it can make you look credit hungry if you apply for a gold loan with several applicants. However, suppose you make a direct application with the bank/NBFC. In that case, this is more likely, though online applications would not affect your credit score as inquiries about different lenders can be done quickly by simpler comparisons.
Minimal documentation: With the online process, the paperwork can be done more conveniently, as you can upload the records online from the convenience of your home.
Faster processing: A gold loan requires minimal eligibility and paperwork checks; not much time is therefore lost upon review of the documents submitted. The loan is thus rapidly processed and sanctioned by the creditor.
Below are relevant documents for a gold loan:
Proof of identity: PAN Card/ Aadhaar Card/ Voter ID/ Passport/ Driving License/ Card issued by Govt.
Proof of address: Passport, driving license, election ID card, electricity/ telephone/ mobile bill/ bank statement proof: address proof: (not more than three months old)
Conclusion:
Experts claim that gold loan is one of the fastest and most affordable financial instruments and a practical approach towards the same can be beneficial for the borrowers.
