Question: Is Gold Loan A Mortgage Loan?

Is gold loan a good option?

Gold loans are secured loans in which you will be required to keep your physical gold in the form of jewelry or coins as collateral for your fund requirement.

It is considered as a good option for short-term money requirements..

Which type of loan is best?

Unsecured personal loans. Personal loans are used for a variety of reasons, from paying for wedding expenses to consolidating debt. … Secured personal loans. … Payday loans. … Title loans. … Pawn shop loans. … Payday alternative loans. … Home equity loans. … Credit card cash advances.Jan 11, 2021

Is Gold Loan better than home loan?

As longer loan tenure converts into higher interest cost, opting for a gold loan might be a more cost-effective option for those confident of repaying their loan within one or two years. Personal loan would be a better choice for those seeking a bigger loan amount and longer tenure.

How does a gold loan work?

When you take a gold loan, you essentially pledge your gold to a lender for an amount based on its valuation. As an asset-backed loan, your gold remains with the lender until complete repayment.

What documents are required for gold loan?

Documents Required for Gold Loan 2020Identity Proof: PAN Card/ Aadhaar Card/ Voter’s ID Card/ Passport Copy.Address Proof: Rent agreement/ Passport/ Driving License/ Utility Bills/ Aadhaar Card/ Voter’s ID Card.Photo identity proofs.Passport size photographs.

How much gold loan can I get per gram in HDFC?

HDFC Gold Loan CalculatorEligibility CriteriaHDFC Gold LoanGold Loan per gram₹ 2,415 to ₹ 2,952 depending on the purity of goldAge of Borrower21 – 65 yearsMaximum Loan Amount₹ 50 LakhMaximum Loan to Gold Value RatioUp to 85%3 more rows

Is gold loan a term loan?

Gold loans are short-term loans and have a flexible tenure ranging from a minimum of 1 month to 5 years or more depending on the lender. … Since gold loans are secured against your gold, you should be careful about loan repayment and should take loan amount that you actually need and can repay comfortably.

How is gold loan calculated?

You can calculate the gold loan interest by subtracting the principal amount from the total amount to be paid. The total amount you would pay by the end of tenure can be calculated with the help of an EMI calculator.

Can we pay Gold Loan Online?

You can simply set up a Gold Loan online payment scheme with your lender (linked to your loan account) and make partial or complete payments of both the principal amount and the interest component as per a repayment option that suits you.

Is personal loan a term loan?

While personal loans, business loans, etc. are unsecured form of term loans, advances like home loans qualify as secured term loans sanctioned against a collateral. Term loans are available at both fixed and floating rates of interest. It is up to the borrower to decide which type of interest to opt for.

What happens if gold loan is not paid?

Since the gold has been pledged as collateral against the loan, failure to repay (three consecutive payments or more) will ultimately lead to the gold being auctioned off by the bank or the financial institution. This is now a non-performing asset and will be sold off for recovery.

Can I sell my gold to Muthoot Finance?

You can visit a Muthoot Fincorp Gold Point near you to sell gold for cash. If you want to hold on to your jewellery, you can avail a Muthoot Fincorp gold loan at affordable interest rates.

Who is eligible for gold loan?

In order to apply for a Gold Loan, you must be: A farmer, trader, salaried or self-employed professional, or businessman. Between 21 and 70 years of age.

What is the benefit of gold loan?

A generic comparison between gold loans and personal loans shows that gold loans come with lower interest obligations. A gold loan is sanctioned at interest rates that range between 11-13%, but a personal loan is a sanction on interest rates that range between 16-22%.

Which bank is best for gold loan?

SBICurrently, SBI offers the lowest gold loan interest rate of 7.50% for a tenure upto 36 months and hence, is one of the best banks for gold loan….Best Banks for Gold Loan.BankInterest RatesLoan AmountFederal Bank8.50%₹ 1,000PNB8.75%₹ 1,000Manappuram12.00%₹ 1,000Muthoot11.99%₹ 1,5001 more row