Gold has always been integral to Indian culture and is considered a valuable investment. It is not just purchased for festivals but also for special occasions like weddings and the birth of a child. Due to its long-term value retention and appeal, every household in India is expected to have a stock of gold they can rely on in times of need. A gold loan is an amount a borrower can receive against the pledged gold. The gold loan per gram amount is calculated based on the purity and weight of the gold, with a higher gold loan per gram for higher-purity gold.
Table Of Contents
Borrowers should carefully evaluate their financial requirements and choose a repayment option that suits their needs and capacity.
Regarding obtaining a gold loan, various options are available in the market. While small-time jewellers or pawn shops may offer gold loans, it is recommended to approach a reputable bank or NBFC regulated by the Government of India. Such lenders adhere to regulatory guidelines, ensuring your gold is safe. Some NBFCs specialise in offering gold loans per gram, offering borrowers more attractive interest rates and other benefits such as flexible repayment options, lower gold loan processing fee, and doorstep services. However, it is important to compare the interest rates and features of various banks or NBFCs before deciding where to obtain a gold loan.
When obtaining a gold loan, the purity of the gold loan per gram plays a crucial role. Generally, the higher the purity of the gold, the higher the valuation amount, which results in a higher loan amount. Most lenders expect a minimum purity level of 22-karat or more for considering it as collateral to pledge against the loan. It is important to note that the value of any precious stones or gems set into the piece will not be considered for a gold loan. The value of the gold loan per gram will solely determine the loan amount. It is worth noting that gold coins are more likely to be accepted as collateral for a gold loan compared to gold jewellery.
Gold loan processing fees are essential to consider when applying for a loan. Borrowers need to know the different processing fees and other associated costs offered by various lenders before selecting a gold loan agreement. Lenders charge a gold loan processing fee to process a gold loan application. The fee may vary from lender to lender and is typically a percentage of the loan amount or the value of the gold pledged. Some lenders may waive the processing fee or offer lower rates to attract more borrowers. The lender determines the gold loan per gram based on the prevailing market conditions and the value of the gold. It is recommended to conduct research and make comparisons of the gold loan per gram and gold loan processing fee provided by various lenders before committing to a loan agreement.
