As per data, WGC (World Gold Council) revealed that the gold consumption in India has enhanced by 78 per cent in the year 2021 to nearly 798 tonnes. In India, the financial value of gold is accompanied by in-depth sentimental connection as the Indians buy gold on various auspicious events.
As per the WGC, India ranks second in gold consumption and the Indians presently have gold of over 25,000 tonnes. With the prices of gold spiralling upward, gold as a security or collateral against loan has become attractive. Lender after lender is providing lucrative offers on gold loan with simple gold loan eligibility criteria and minimal documents required for gold loan. However, can you use the gold lying in the locker of your bank as security to avail a loan against it? Are there any specific eligibility parameters for availing a gold loan that you must know? Continue reading to find answers to all of them.
Gold loan eligibility parameter –
Gold loans act as a lifesaver when any financial crisis hits. However, to avail a gold loan, you must mitigate specific standard parameters that many lenders follow. These eligibility parameters include –
∙ Age limit for gold loan application begins from 18 years of age. Gold loans are provided to the applicants of up to the age of 70 years.
∙ A self-employed or salaried person can apply for the gold loan.
∙ The gold quality that you pledge as security or collateral must be between 18 – 22 karats or 24 carats. Note that, most lenders prefer to accept only gold jewelleries.
What gold loan amount is available?
Maximum eligibility for a gold loan is dependent on the LTV i.e., loan to value ratio of the gold loan. This infers that gold loan is sanctioned for up to 75 per cent of the gold value. You may place an application for the maximum gold loan value. The maximum repayment tenure is usually 12 months for most repayment options and up to 36 months for EMI options. To know about the gold loan charges and fees, ensure to visit the official site of the lender from where you are looking to avail a gold loan.
Also Check: Documents Required for Gold Loan
How can you check your gold loan eligibility?
You must ensure to mitigate the occupation and age criteria and the gold purity to pledge the gold as security or collateral for gold loan. Many banks even provide the consumers with a concessional rate of interest.
How can you compute the gold loan?
The procedure of computing the gold loan amount is stress free, straightforward and hassle free in nature. All you require doing is ensuring that you hold adequate gold jewellery or other important assets in gold such as jewellery, etc. to pledge the same to secure a deal on gold loan. Also, you need to know about the right gold weight, compute the purity in karats, the loan repayment tenure, etc. before opting for any gold loan deal.
The online gold loan calculator is the best tool that you can use to know the loan repayment tenure suitable for you as per repayment capacity and cash inflow. Then, you must input the karat of gold or jewellery in the online gold calculator and the overall weight in the form of grams.
This online calculator computes the output in the form of loan amount that will be processed based on the figures you input on the calculator.
What’s the maximum age to place an application for the gold loan deal?
The maximum age for applying for a gold loan by most lenders is usually 70 years. The highest age limit might differ from one lender to another.
What are the advantages of using an online gold loan eligibility calculator?
The major benefits of the gold loan eligibility calculator are even before approaching the lender’s branch, you can get an idea regarding the loan amount you may be eligible for. While your final gold loan eligibility depends on many other parameters, an estimated value of loan can assist you plan out accordingly.
What’s a gold loan eligibility calculator per gram?
Gold loan eligibility per gram calculator is the percent of gold value that may be considered for computing the gold loan eligibility. The gold value basically depends on the weight of gold jewellery, the gold rate on that specific day and the gold’s purity. The lender will basically loan a percent of this gold value and this is known as the gold loan eligibility every gram. Your eligibility for a gold loan will basically depend on the value per gram of jewellery of gold.
Computation of the gold loan EMI –
Once the gold loan eligibility or eligibility per gram of the gold loan is computed, an amortisation schedule is basically prepared. This kind of schedule offers the EMI that you require to service and is a combination of principal constituent and interest rate applicable. The online gold loan EMI calculator basically helps in providing an estimated EMI but the final figure is computed at the bank branch by the team. There are many repayment options, besides the traditional monthly EMI repayment plan.
The distinct ways to make gold loan repayment involve paying the principal constituent and interest constituent equally through monthly instalment method, making payment of the interest constituent as EMI and paying the principal constituent towards the end of gold loan repayment tenure, conducting partial repayments depending on the fund available across the repayment tenure and bullet mode of repayment.
Ending note
Gold loan basically is a high value, simply accessible asset to pledge for and borrow a loan against. Gold loan endows you a high loan to value (LTV) ratio. Additionally, it provides flexible repayment choices, gold may be reused for repetitive pledging and utilised to obtain liquidity with minimal documentation when any financial stress arises. Moreover, you must note that if you default in making the gold loan payment on time, then you hold the risk of losing out on your pledged gold jewellery as the lender might auction the same to recover your loan capital. So, always ensure to repay your gold loan EMI on time.