A gold loan is an easy way to fulfil your urgent financial requirements. It is available for anybody having their savings in the gold form. A gold loan starts with Rs. 1000 and you can borrow from gold loan companies as much as you need up to a significant value, depending on the applicable gold loan scheme. You can use your gold lying idle in your lockers or at home to meet your sudden financial obligations. Just submit it to the right lender offering high LTV for instant gold loan at a reasonable interest rate. 

There is no doubt that a gold loan is one of the most convenient credit solutions today as it is a secured loan and easy to sanction for lenders. Here is the checklist that loan-seekers should go through, but they may ignore it during the stress of facing a financial emergency.

Checklist:

• Checking for Gold Purity as it determines the Loan Amount 

The fineness of the gold is the primary factor to determine the loan amount to be approved. You should evaluate the purity of your gold on your end. If you want a loan against mortgaging your gold ornaments, the value of gold is valued based on the price of the respective purity of gold in your city. The purity of the gold ornaments to be mortgaged must be between 18-24k to avail of a loan. The better the gold quality, the higher the loan amount. The stones, gems, or any other metal in your gold jewellery will be deducted for gold evaluation. 

1. Required Documents for Quick Loan Processing

Check for the documentation process with a lender. It should be hassle-free with minimal documentation requirements. Applying for a gold loan is easy and quick, with leading lending institutions like Muthoot FinCorp, as they require only basic KYC documents to approve your loan against your gold ornaments. They do not need the applicant’s income proof or credit checks. Just submit your identity proof and address proof with your loan application to make a gold loan request. 

2. The choice between banks and NBFCs for Instant Gold Loan 

You have a couple of alternatives to get credit against loans. Bank gold loans and NBFC gold loans are majorly considered by most loan-seekers. If comparing the two, NBFCs are more lenient to appraising your gold ornaments with easy loan processing; therefore, most individuals prefer NBFCs offering instant gold loans with easy documentation.

3. Comparing Gold Loan Interest Rates for an affordable gold loan

You must compare different schemes for gold loans with various NBFCs. You can find several gold loan schemes with leading lenders where interest rates differ. Choose the one that offers more affordable interest rates against transparency in costs following a simple verification process. The smart move is to use a gold loan EMI calculator to know the applicable interest rate on your gold loan against different schemes. Some Gold Loan schemes are Muthoot Blue Guide, Muthoot Easy Pro, Take It Easy Gold Loan, etc, which differ in terms of interest rates and loan tenure.

4. Checking the Credibility of the Lender 

A gold loan is an asset-backed loan, and your gold ornaments remain with the lender until you pay the loan completely. It is one of the most important points in your checklist to check the credibility of the lender even before the affordability of the loan. You can rely on thr lending institutions as they consistently keep a check on asset security like Muthoot FinCorp.

5. Check your Gold Loan Eligibility for Loan Amount

As mentioned, a gold loan is an easy loan that does not demand many documents to back your loan. For an eligibility check, you should check for the loan amount available against available gold with you. You can use the Muthoot FinCorp gold loan calculator to know how much loan amount can be sanctioned against available gold with you. The lender offers you up to 75% of the current value of your gold ornaments.

6. Consider the Repayment Structure

It is also an important point in your checklist. Check for repayment flexibility offered by your chosen lender. It should be flexible enough to prepay or foreclosure of gold loans. If it allows you to make partial prepayment of the loan, you can get benefits with a significant difference in your EMIs. 

Thus, get ready with this checklist to get an easy, affordable, and instant gold loans.