Gold Loan

What is a Gold Loan and how it works

Gold loan is the most secured loan and it always works for emergencies or without emergencies, the interest rate will be low if you apply for a gold loan from any of the best banks like any best bank. People want to choose a gold loan.

Whenever any of the customers pledges any of the gold (including jewelry, ornaments, or other things) as collateral for taking the best loan, this is also known as a gold loan. All the bank or lender uses the gold as most security against potential payment default by any of the customers. The gold loan amount sanctioned is a very certain and low percentage of the value of the gold that has been simply pledged. Gold loans are short-term as well as repayment periods can range. If you need a little bit of huge money for immediate expenses as well as expect to be able to pay this back in the short term, then the gold loan may be the best choice and option for you.

Some of the advantages of a gold loan?

Very less interest rate on the gold loans:

In general, the rate of interest on the loans is very less than on personal loans or different. Since this is also a relatively very low-risk loan for lenders as they also hold the gold as collateral. The rate always varies depending on how much you wish to borrow about the value of the gold you have simply pledged. The interest rates are very less whenever the loan amount is not more. However, if the amount borrowed is a little bit high as compared to the value of the gold, the rate will be a little bit higher.  

No any of the income proof:

In most of the cases, you are not even required to submit any of the income certificates since the gold is held as very security by the lender. So, even if you are currently unemployed or do not have a very good credit score, you will also be eligible for the best gold loan. However, this is also possible that some of the lenders might ask for a salary certificate for the loans above a very certain amount.

For a very fast process:

In India, gold loan is some of the very fast loans to be sanctioned as the banks have your gold as very security in any case of default, removing the need for checks on the credit scores or any reports. The loan can simply be approved, over the counter, in a matter of very less or minutes. Most of the lenders can have the gold valued very quickly and sanction the loan very immediately, after all the basic verification of the purity and value of the gold.

Some of the things you need to think about before applying for a gold loan:

The gold rate in Bangalore is low like 4,110/ gram, and demand is also very high because of the rate. Gold as an asset has also emotional value in the whole of India since this is largely in the form of family jewelry. Always providing gold as collateral means that you run the risk of losing the family jewelry in such a case if you are not able to repay your loan. This can also cause undue mental as well as emotional pressure not just on the borrower but the whole of the family. So always think carefully if you will simply be able to repay the gold loan in full before you simply apply. 

Also, see the quality of lenders:

There are most of the banks who always offer attractive terms for these loans. This is most important to study many of the lenders and then choose one that has the very best and good reputation. 


HDFC gold loan per gram rate is 3,329 to 3,489 with the current rate, in this bank, you will get a little bit less rate if you compare to different banks. HDFC Bank also offers a very cheap interest rate.

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