How To Get A Gold Loan

No one knows when the emergency fund becomes necessary in your life. Instant cash may not be
available to deal with the challenging situation. With the gold ornaments at your disposal, you
can apply for a loan.
A gold loan is a type of secured loan, and thus, your gold jewellery needs to be chosen as your
collateral. So, look for second-hand gold jewellery buyers in Chennai and get the cash for
your needs. The amount of loan you will receive from the creditor can vary with the current
market value of the gold. But, how will you get cash for gold in Chennai? The gold loan
application process is very easy. However, you have to learn about eligibility criteria.
Are you eligible for a gold loan?
Regardless of your work status, you will be qualified for the gold loan. Make sure that you have
a good amount of gold assets to be eligible for the loan against gold.
Some second-hand gold jewellery buyers in Keelkattalai accept 18 and 24-carat gold to
provide the loan. Some of them may not accept gold coins and bars. Thus, you have to ask
questions about these details before applying for the loan.
Check the interest rates and other details
Like other types of loans, gold loans are available with a particular interest rate. The reliable
creditor always maintains 100% transparency in the lending process. Thus, there should be no
hidden charges for the gold and silver loan in Chennai.
Moreover, you have to learn about the processing fee, stamp duty, cash handling charges, and
penal interest.
Arrange the documents needed for your gold loan application
From Manapuram finance to Muthoot finance, there are several gold loan providers. However,
any loan agency will ask you to submit documents like
 Proof of age
 PAN card
 Signature proof
 Address proof
 Identity proof
 Any document for post-loan disbursements
 The application form filled properly
As the address proof, you can choose any of the following documents-

 Aadhaar Card
 Driving license
 Passport
 Voter card
 Electricity bill
 Rent Agreement
 The latest receipt of the Gas Bond Paper
 Credit Card Statement
A few more steps for availing of the gold loan

Things You Should Know Before Getting A Gold Loan

 You can choose between online and offline channels to get the gold loan. In the case of
the online application, you have to visit the official website of the lender. Check the gold
loan schemes available for you and click on the right one.
 Some gold loan providers have an offline branch in your locality. You have to carry the
documents and gold jewellery to the branch.

 After the submission of the application form (online and offline), the lender verifies the
process. You will be notified of the approval of your application, and then you will get
the loan amount.
It is easy to get a loan against the used gold jewellery in Chennai. When you are in a financial
emergency, this loan will save you. However, you must not overlook your repayment capacity
while applying for the loan.
Know about the ways of repaying your gold loan
Some gold loan providers present you with multiple repayment options. The most common
repayment schemes are-
 EMIs- You can choose the EMI scheme for which you have to pay a particular amount
every month. It will cover the principal amount and interest.
 Only interest EMI- During the loan tenure, you must pay the interest only. You have to
repay the amount when the tenure ends, and your loan matures.
 Bullet repayment- You have to repay the loan amount with the principal and interest
rate. Repayment can be done at the end of the tenure.
 Partial repayment- Based on your affordability and convenience, you may repay the
principal and interest.
What should be your gold loan tenure?
In most cases, you will find a shorter repayment tenure for your gold loan. The tenure is not
more than 1 year, and you may repay the amount in the EMI scheme. On the contrary, the short-
term loan covers around 6 months. You can repay the loan amount at a time. In the case of the
short-term gold loan, there is no prepayment penalty. You can consult your lender to set the gold
loan tenure.

gold loan

How much amount will you receive as the gold loan?

Your lender will calculate the amount after analysing the purity and weight of your gold articles.
They focus on the Loan to Value Ratio for this calculation. Several lenders provide loans with
more than 75% of the market value of gold and silver. With the gold jewellery value of about Rs
1 lakh, you will receive a loan of around Rs. 75,000.
Look for the best lenders to obtain your gold loan. Compare interest rates for the loan and apply
for it. You can also send an online application for this loan.