Buy The Vehicle Of Your Dreams By Simply Availing Gold Loan

How can you purchase your vehicle by availing of a gold loan and understand the documents required for a gold loan.

If you have been waiting for too long to buy your dream bike or your first family car, then your wait is over. If you fear whether your vehicle loan would get sanctioned or not, then here’s a pro-tip. You can use your gold ornaments, jewellery or other gold belongings to finance your vehicle. You read that right! You do not need to worry about your eligibility for a vehicle loan and hefty interest rates, with a gold loan taking care of all of it.

How can gold loans be used to buy vehicles?

Gold loan is the financing facility that can be availed by the borrowers by pledging their gold articles as security. They can be instantly availed, and the banks and financing institutions readily provide loans against gold due to the premium value that gold carries. Usually, banks finance 75%-85% of the gold value as loans to the borrowers.

Therefore, if you are looking towards purchasing your vehicle, then you can instantly make payment for the same using the gold underlying with you. This can also help you negotiate discounts with automobile dealers for instant and upfront payment.

How Gold loan works

Some people confuse a gold loan as a loan to purchase gold or a loan to buy gold jewelry. However, it is a type of loan where you give your gold as a collateral to avail a loan. The gold loan works in the way that you would be able to utilize your gathered gold assets as security. Then, the lender would weigh and inspect the purity of the gold which you have taken there, determine its market value, and thus sanction the corresponding loan amount. You would normally be able to do so with negligible documentation, and very often you receive the funds within a few hours. The loan is then paid back with interest, and the gold is returned to you.

How to take Gold Loan

Compared to some other forms of financing, availing gold loan schemes is one of the easiest. For lenders, a gold loan has the lowest risk citing the fact that it is backed by collateral. Low risk loans are easily availed by the borrowers. The process of taking a gold loan is fairly simple, and involves a lot less documentation, time and effort as compared to conventional loans.
Getting a gold loan is quite straightforward, and is really helpful to fund short term loan requirements, one might have. Below is the complete information on how does gold loan work and a step-by-step guide on how to avail a Gold Loan:

• Know the basics : Gold loan is essentially a loan backed by your asset (Gold) in the form of jewelry, or coins. The amount of loan offered is a certain percentage of the market value of the security (Gold)

• Evaluate your needs : Determine how much amount you would need in the form of a loan before you apply for gold loan. It is not necessary that you avail the entire disbursable value, if your requirement is less then you can avail that amount. The lending company will help you with the value offered as a loan and the terms of loan, i.e. interest rates, monthly installments, etc. evaluate your needs and accordingly take a decision

• Evaluate offers by lenders : It is essential that you compare the offered loan amount, and the loan terms like interest rates, payment schedule and other terms and conditions before making a call to avail a gold loan in India. There are plenty of lenders who would be willing to disburse a gold loan, it is your responsibility to compare and judge for yourself which lender’s lending terms are best suited to your needs.

• Gather required documents : Like any other loan, you’d need valid documents to avail gold loan too. Make sure that all your documents like PAN card, Aadhaar card, valid address proof, photograph, and the collateral (Gold) is in place

• Visit Lender : Visit the lender’s branch with all your documents and the gold. It would be great if you can make an appointment in advance or apply online. Off late you can also avail online gold loan or apply for one

• Get your Gold valued : The lender would weigh and appraise the purity of the gold to understand how much money would be lent as a loan. A hallmark certification helps in availing better valuation.

• Sign Loan Agreement : Carefully read the loan agreement and the terms and conditions before signing any documents. After carefully reading and understanding, do the agreement execution process with the lender. Make sure you read the gold loan policy and understand gold loan rules and regulations. Also, compare the terms with any marketing material like Gold loan pamphlet to avoid confusion

• Receive Funds : Once the gold is valued, given as a collateral to the lender, the borrower then releases the funds, which can then be used as per your requirement

• Repayment : Repay the gold loan interest according to your agreed schedule. Most lenders permit early repayment without any kind of penalty, so do check if this is possible.

• Get your gold back : Once the entire principal is paid back to the lender, you can submit the no-outstanding declaration and make a request for release of your collateral (Gold). Just like giving, even receiving your gold back is a swift and simple process

Benefits of Gold Loans

Gold loans offer certain advantages to their borrowers. These include the following:

1. Affordable interest rates: Gold loans can help you get the required funds at the most affordable interest rates. As gold loan is backed by a collateral, i.e. Gold, the risks associated with lending is really less, which allows the lenders to offer attractive and affordable interest rates. At indiagold, the interest rates start with just 0.77% per month.
2. Shorter tenures: Shorter tenures ensure faster settlement of loans, thereby freeing your cash flows. Usually, the tenure for gold loans is around 6 months. Another great thing about a gold loan is that you can repay the principal amount as per your convenience. You are under no obligation to repay the principal by a fixed amount / percentage. So you can make the most out of repayment flexibilities and repay the loan efficiently.
3. Instant processing: As gold has inherent premium value, banks readily accept gold as security for financing loans. As the formalities are less, the sanctioning and disbursement are done swiftly.

What does indiagold offer?

To enrich the financing experience of the borrowers, indiagold provides certain benefits that make it stand out from the rest of the lenders. The whole process from loan application to repayment is structured in a unique manner. It includes:

1. Personalised Loan Advisor: You do not need to worry about the procedure as indiagold provides a loan advisor to the borrowers to guide them through various schemes and make the entire process smooth and hassle-free. You just need to visit the indiagold website and click on “Apply Now”. You can even give a missed call on 1800-123-999-888.
2. Instant Disbursal Process: Applicants will get a call on their registered contact number to verify their fund requirements. Once you confirm, they will schedule your appointment with a Relationship Manager.
3. Instant transfer: Once the application is processed, the money gets transferred to your bank account instantly, thus, making the entire process seamless and swift.
4. Secure storage: After the money is transferred into your account, your gold ornaments are packed in front of you in secured GPS-enabled packets. These are taken by the loan manager and deposited in the safe lockers. The entire responsibility of your gold is upon indiagold. The company provides free insurance from the New India Assurance Co. Ltd. for the gold stored in the lockers.
5. Easy repayments: Repayments are easy and can be done directly from the website or using the mobile app. It also offers flexibility over repayment options depending upon the scheme under which the loan is availed of.
6. Gold delivery: indiagold ensures that your gold is safely delivered to you by the next working day after the closure of your loan.
7. Other benefits: Other benefits that indiagold offers on gold loans include an option to not pay principal till the end. The above benefits depend upon the amount of loan you require and the scheme you select for your gold loan. Three different schemes are offered by indiagold for its customers:

• indiagold FairValue
• indiagold HighValue
• indiagold MaxValue

Documents required for the gold loan

The following documents are required to be submitted to process your gold loan application:

• Your Photograph
• Identification Proofs (Any one of the following): Aadhaar card, Voter ID card, Driving license, etc.
• Address Proofs (Any one of the following): Aadhaar Card, Driving License, Voter ID card, Passport, Utility Bill, Rent or lease agreement, etc.
• PAN card or Form 60
• Pledge card of your existing gold loan and details of ornaments pledged (in case of transfer of your existing gold loan to indiagold.

Vehicle loans usually require more documentation like income proof and business or salary proof. Apart from that, its eligibility criteria include minimum income criteria, number of years of work experience criteria, and age criteria as well which are all relaxed in the gold loans. Thus, the documents required for gold loans are fewer as compared to the vehicle loan, making vehicle purchase smooth and easy with a hassle-free process.

Bottom Line

You have been excited for a long time to purchase your vehicle, however, stressed with the hefty process of vehicle loan and its formalities. This is where the gold loan comes to your rescue—no need to postpone your dream again till you meet the eligibility criteria. With just a missed call, instantly secure a gold loan and buy your dream vehicle now.With gold loans, you can avoid long procedures typical of a car loan. This flexible financing facility will enable you to buy that dream vehicle without stress. It's just a case of one simple call, and the necessary funds will be at hand to take the vehicle away.