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.
If you’re looking to avail a loan to fund your vehicle purchase, you have 3 options:
- Used car Loans : These loans are offered to buyers of used cars, the terms like loan tenure, and interest rates are offered while taking this factor into consideration
- New Car Loans : These loans are offered to customers buying a new car, these have slightly more favourable terms for the buyer
- Bike Loan : These loans are offered to customers looking to make a two wheeler purchase
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.
Why to choose Gold Loans over Vehicle Loan to fund Car Purchase?
Funding a car purchase can be difficult, as it may require significant capital injection. Securing a loan to fund the purchase of your dream car makes the most sense. However, there are certain measures that one can take to minimize the cost of loan. One such measure is taking a gold loan over a traditional car loan. Following are the benefits of availing a gold loan to purchase a car:
- Higher repayment Flexibility : When compared to the traditional car loan, gold loan offers a higher repayment flexibility. For car loans, there would be a fixed tenure, through which the borrower has to make equated monthly installments towards the repayment, which would include both interest as well as the principal contribution. However, for gold loans, the borrower can make bullet payments towards the principal which can decrease the liability considerably, essentially offering a higher flexibility to the borrower compared to the car finance loan.
- Better Interest rates : Auto loan interest rates typically are on the higher side, and moreover these are dynamic. I.e. a person with a low credit score would be offered a higher rate of interest. Gold loans don't work that way. Considering the fact that the gold loan is backed by gold as a collateral, the interest rates are kept fixed and are usually lower than traditional auto loans.
- Short Tenure : As opposed to a traditional auto loan financing where the loan tenure can go up to 7 years, the biggest relief offered with a gold loan is the short repayment period. This coupled with the flexibility on offer, one can easily repay the loan quickly without shelling huge amounts of money in interest component of loan repayment.
- Ease of Securing Loan : Compared to a traditional loan to buy a car, it is easier to secure a gold loan. Reason being, a car loan requires an applicant to submit a long list of documents, earning proof, and often comes with long processing times. Whereas for gold loans, the processing time is a matter of minutes. In fact, lenders like Indiagold offer gold loan processing in under 30 minutes!!
- Loan not linked to the car : Once you apply for a car loan, the loan is linked to the car, which poses several inconveniences like removing the lender’s name from the car’s registration papers once the loan is completed, among many others. This is where funding car purchase using a gold loan shines bright, as it helps you escape such inconveniences
Benefits of Gold Loans
Gold loans offer certain advantages to their borrowers. These include the following:
- Affordable interest rates: Gold loans can help you get the required funds at the most affordable interest rates. Reason being, as opposed to the traditional personal loans, gold loans are released against a gold collateral. This collateral decreases the overall lending risk, which essentially helps the lenders to provide cheaper loans. At indiagold, the interest rates start with just 0.77% per month.
- Shorter tenures: Shorter tenures ensure faster settlement of loans, thereby freeing your cash flows. Usually, the tenure for gold loans is around 6 months. This coupled with flexible repayment makes gold loans the preferred option for securing quick funding at a cheaper interest rate.
- 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. This makes gold loans one of the fastest and easiest to avail loans.
What does indiagold offer?
To enrich the financing experience of the borrowers, indiagold provides certain benefits that make its instant gold loan offering stand out from the rest of the lenders. The whole process from loan application to repayment is structured in a unique manner. It includes:
- 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.
- 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.
- Instant transfer: Once the application is processed, the money gets transferred to your bank account instantly, thus, making the entire process seamless and swift.
- 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.
- 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.
- Gold delivery: indiagold ensures that your gold is safely delivered to you by the next working day after the closure of your loan.
- 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 application of gold loan online:
- 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, as vehicle loan details are very tricky and the whole process is energy and time consuming. This is where the gold loan in India 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.
