Attractive interest rates:
As gold loans are secured loans, they tend to be more affordable than other types of loans because of the lower interest rates.
Loan-to-value (LTV):
The maximum LTV (loan to value ratio) for gold loans from the Reserve Bank of India is 75 percent, capped by RBI. For example, if you pledge gold worth Rs 1 Lakh (1 lakh = 1 lakhs = 10 million), you can get a maximum of Rs 75,000 as Gold Loan.
Lesser processing fees:
The processing fees of gold loans is very less. We at indiagold offer ZERO processing fees.
No foreclosure charges
There are no foreclosure charges or prepayment penalty on paying the loan amount before the loan tenure, as compared to other loans
No credit score requirement
Since gold loans are backed by gold or gold ornaments as collateral, there is no requirement for credit scores. Even though people with lesser credit scores can get these types of loans.
No restrictions on the usage of money
There are no restrictions on where you are using the money obtained from the gold loan, unlike other loans.
Tenure of Gold loan
Gold loans have a tenure of three months and can go up to five years, depending on the amount borrowed and your requirements. At IndiGold, we offer a 6-month loan term with no additional fees.
Safety of gold
The financial institution offers strong security of your gold. Your gold will be kept in their vaults with proper surveillance. indiagold offers 100% insurance on your gold, free of cost.