Turn your gold into cash instantly

1. Introduction

• Gold isn’t just a luxury — it’s a powerful financial asset: Although in India gold holds significant cultural value, often a measure of wealth, it’s undeniable that it is an outstanding financial asset! Gold exhibits unmatched price stability, with consistent growth over a long-term period. It is often used as a hedge against inflation and an investment instrument during uncertain times in the financial market!

• The idea of gold loans as the fastest way to get cash without selling your jewellery: If you need quick cash, then a gold loan can be a great option! It is a type of asset-backed loan, where the gold serves as collateral to secure loans from the lender. It provides quick liquidity without having to go through the hassle of finding a buyer, and that too at your desired gold rate!

2. What Is a Gold Loan?

• Define a gold loan: A Gold loan is an asset-backed form of lending, where the borrower collateralises their gold assets to secure a loan from a lender.

• How it differs from selling gold — ownership remains with you: With gold loans, the borrower essentially gives their gold as security, which means that despite not having the physical possession with them, the borrower remains the owner of the gold, which is not the case with selling gold to avail funds.

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3. Why Choose a Gold Loan to Get Instant Cash

a. Speed and Convenience

• Immediate valuation and approval — cash in minutes: One of the biggest advantages of gold loans is the sheer speed at which you can avail a loan from the lender. Since this is a collateral-backed loan, the assessment is fairly quick, and all thanks to digital payments, the loan amount is also disbursed in a matter of minutes, making it a highly convenient and quick way of availing funds. Lenders like indiagold offer gold loans with unmatched efficiency, thus enhancing borrowers’ experience.

b. No Credit Score Worries

• Gold acts as collateral, so lenders don’t require high credit scores: Credit scores act as an indicator of the risk exposure. Since the loan is backed by the borrower’s gold, the risk factor for the lenders gets mitigated to a great extent, thus nullifying the need for a good credit score or a perfect credit profile. Borrowers with less desirable credit records can also avail gold loans with ease!

c. Retain Ownership

• You get your gold back after repaying the loan: Since the gold is a security for the loan, as and when the borrower repays the liability, including the principal, interest, and any other applicable charges, the loan is settled and the custody of the gold is given back to the owner, i.e. borrower, without a hassle!

d. Lower Interest Rates Compared to Personal Loans

• Highlight cost efficiency: Gold loans are highly cost-effective forms of loans. Since gold to a great extent mitigates the lender’s risk, the interest component is comparatively lower than compared of some other traditional forms of loans, such as personal loans, credit card loans, etc. indiagold offers gold loans at a highly competitive rate, making gold loans a no-brainer choice for the borrowers.

4. How the Gold Loan Process Works

1. Visit a Bank or NBFC (Non-Banking Financial Company)

• Walk-in or apply online: You can walk into your nearest gold loan lender and apply for a loan in a matter of minutes. Another option is to apply for a gold loan online. Indiagold offers a seamless gold application journey on their user-friendly website!

2. Gold Valuation

• Purity check and weight measurement: Gold valuation is highly dependent on the current gold prices, i.e. value of gold in the gold market, the purity of the collateral, and the weight. All these factors, along with the lender’s loan-to-value offer, in conjunction dictate the amount of loan you can avail against your gold collateral.

3. Loan Amount & Interest Calculation

• Usually, 70–80% of gold’s market value: The Gold amount calculation is dependent on the loan-to-value ratio offered by the lender. Hence, while assessing your options, it is important to choose lenders offering the highest loan-to-value ratio, which enables you to borrow the most against your collateral. Lenders like indiagold offer one of the highest LTV ratios in the gold loan space.

4. Instant Approval and Disbursal

• Cash or bank transfer within minutes: Upon approval of the gold loan, the lender takes possession of the gold and releases the gold loan amount to the borrower in the form of cash or bank transfer.

5. Repayment and Reclaiming Your Gold

• Flexible tenure options and easy retrieval after full repayment: Once the repayment is done in full, including the principal, interest and any applicable charges, the loan is settled, and the custody of the gold is given back to the borrower.

5. Tips to Get the Best Gold Loan Deal

• Compare interest rates and processing fees from multiple lenders: Comparing multiple lenders based on their interest rates and processing fees can help make a responsible financial decision, as it has a direct impact on your finances. Be sure to choose a lender willing to offer a good interest rate and a host of convenience features. One such lender is indiagold, offering one of the best interest rates on gold loans in the industry!

• Choose reputable institutions with transparent valuation methods: In the world of lending, trust and reputation are extremely valuable as they dictate the success of the lender-borrower relationship. This trust and reputation are built by ethical practices and unmatched customer-centricity, which is precisely what indiagold offers!

• Check for flexible repayment options: A Flexible repayment plan can put the borrower at ease, as it provides the borrower with the convenience to repay the loan seamlessly!

• Avoid over-borrowing — match the loan to your actual need: Responsible borrowing can help repay the loan faster without much hassle, and can also help keep your finances in check, and avoid over-burden at the time of repayment!

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6. Safety and Security of Your Gold

• How lenders store pledged gold in secure vaults: Registered lenders follow the Reserve Bank of India’s guidelines, and store the collateralised gold in safe and secure lockers. This ensures that while the gold is in the possession of the lender, it remains safe and can be released to the borrower as and when the loan is paid in full.

7. When a Gold Loan Makes Sense

• Emergency medical expenses: Emergency medical expenses end up draining bank accounts! Having a backup in the form of gold loans is a boon in such situations. Since, process of selling gold can be time-consuming, to sell your gold, you need to find trusted gold buyers willing to offer a good price and also not suitable for those who are only looking to fulfil their short-term needs. Gold loans make the most sense as they provide quick cash to cover the expenses without much hassle!

• Business or education needs: Business or education needs can often be pretty expensive and catch someone ill-prepared. Gold loans can be a great way to cover these expenses with minimal effort!

• Times when you need instant liquidity without selling your assets: There are times when one finds themselves short of cash and would not want to sell their asset to cover urgent expenses. In such cases, availing a collateral-backed loan can be extremely useful! Gold loans help provide instant access to funds without having to sell your old gold!

Take a Pre Approved Gold Loan

Gold Loan starting @ undefined% per month*

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You will receive a call from our Relationship Manager