Jewel loans rising: Should you take one?

Jewel loans rising: Should you take one?

With the rising prices of gold, it is a precious financial asset. This is why many Indians opt to liquidate gold holdings in exchange for money in times of need. Moreover, many prominent NBFCs in India provide jewel loans online, making the process of opting for these loans even more hassle-free. 

Benefits of taking a jewel loan

Many financial institutions in India provide their customers with attractive perks on jewel loans. Moreover, since there are zero restrictions on end usage of the funds acquired through gold loans, more and more people are opting for it. 

Take a look at the various advantages of taking a gold loan-

  1. Avail high loan value

Financial institutions offer loan amounts of up to Rs. 2 crores on 22-karat gold jewellery items. Borrowers can use this amount to meet a wide range of personal and professional expenses since there is no end-use restriction.

  1. Multiple repayment options available

Various payment options are available to borrowers regarding the repayment of gold loans. They can choose to pay monthly EMIs to clear the debt. Alternatively, they can pay the loan interest periodically and the principal amount at the end of tenure. 

There is also the option to pay the interest at the beginning and the principal later. 

  1. Availability of prepayment and foreclosure facilities

Lenders allow borrowers to pay off debt before the end of tenure at zero penalty charges. There is also the facility to avail of top-up loans at no extra charges. 

  1. Safe and effortless evaluation process

Loan providers also offer a facility where trusted representatives collect the gold ornaments from the borrower’s home. They also perform a careful assessment to ensure authenticity and accuracy. This is a crucial process for anyone to get a loan. 

  1. Zero Processing fee

Many lenders take low to no processing charges for gold loan to make the loan even more customer-friendly. Applicants only need to pay a nominal documentation fee, making the loan application process convenient and affordable. 

  1. Prevention of permanent loss of items

Selling gold items such as jewellery which hold sentimental value can be difficult. So, instead, people can afford gold loans to meet their financial needs during emergencies. Lenders provide gold loan tenure of up to 12 months. This gives the borrowers enough time to recover the items later, and they are not permanently lost. 

Moreover, applying for a gold loan is easy since people can do it online quickly.

Online gold loan application process

Here is a step-by-step guide on how borrowers can apply for a gold loan online from the website of their preferred gold loan provider-

Step 1: Visit the official portal of your preferred lending institution. 

Step 2: Locate the gold loan page and click on the “Apply Now” button. 

Step 3: Next up, the gold loan online application form will appear on your screen. 

Step 4: Fill up this application page carefully with all the details and enter the loan amount you wish to borrow. 

Step 5: Provide your PAN details, 10-digit mobile number, and area pin code and click on “Submit Details”. 

After completing the process mentioned above, the applicant will see the address of the nearest branch of their loan provider. Moreover, a representative from the lending company will also contact the borrower to guide them about completing the loan application process. 

Lending companies also provide free insurance of gold when borrowers take the loan, which protects the pledged items against misplacement and theft. This is another reason for people to apply for a jewel loan when they require funds. 

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