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A Complete Guide on Gold Loan at Home
India is one of the largest consumers of gold in the world, with one of the largest private gold reserves. And the demand for this yellow metal keeps on surging. So, what makes gold such a lucrative option? Historically, gold has always been considered a safety net for future uncertainties, especially financial exigencies. Culturally, gold is associated with auspicious occasions and reflects one’s prosperity. And as an investment tool, people invest in gold ornaments, coins/biscuits, ETFs, gold mutual funds and shares, etc. But despite all of these, selling your precious physical gold items to generate funds does not come easily to most people. This is where gold loans become such an interesting proposition. Gold loans are secured loans wherein your gold articles are pledged to get money for your financial needs and emergencies. Gold Loans, Online Gold Loans, Doorstep gold Loans, etc are variants of the same concept of pledging gold articles in lieu of funds.
Difference Between Regular, Online, and Doorstep Gold Loans
In a traditional gold loan, you are required to physically visit a gold loan company branch. In an online gold loan, you can calculate your eligibility criteria, interest rate, EMI, etc via online calculators. You have to then submit an online application for the loan. And the last step involves you having to visit a branch to get the gold articles valued and complete the documentation. In a Gold Loan at Home scheme, as the name suggests, is the process of availing of a gold loan, from start to finish, at your doorstep. Many gold loan companies, both banks, and NBFCs are offering this doorstep gold loan facility.
Before applying for a gold loan at your doorstep scheme, you should have a good understanding of gold loans, the various schemes, eligibility criteria, interest rates, EMI structure, repayment options, etc. Let us take you through the entire process.
What are Gold Loans and how do they work?
Gold loans are secured advances that a lender lends a borrower against gold articles. The credit extended shall depend upon the value of the pledged gold, the gold loan amount per gram of gold, and other eligibility criteria. These gold loans could either be EMI based or an overdraft facility based.
Gold EMI Loans: In EMI-based gold loans, a fixed EMI is calculated based on the gold loan amount, tenure, and interest rate and has to be paid every month. A Gold Loan on EMI is suitable for individuals who like planned expenses and a structured repayment option.
Gold Overdraft Loans: The other option is a gold loan overdraft facility. In this, the customer is granted a credit line and he/she can choose to use and repay the loan amount at any time. The interest for a Gold OD Loan is calculated for the loan amount utilized and the tenure it was used for. It is suitable for individuals who are unsure of the amount and timing of future expenses.
Who Can Apply for a Gold Loan?
Any individual in the age group 18-60 years can apply for a gold loan by pledging his/her gold jewellery. This loan is granted to professionals, self-employed, business owners, and other individuals. Since a credit score does not matter in a gold loan, a vast demographic who has gold jewellery to pledge can avail of a regular, online, or doorstep gold loan.
Key Steps to follow in a Gold Loan
Although the basic steps remain the same in a regular/offline, Online, or Doorstep Gold Loan, the process to fulfill these differs slightly for each of the variants.
Application: Individuals first need to apply for a gold loan from a lender (bank or NBFC). In a regular gold loan, the application has to be made on a physical form and then submitted to the gold loan company branch. In Online and Doorstep or Gold loan at Home facility, this application is submitted online either on the lender’s website or mobile application.
Evaluation: After your application is found to be in order, the next step is the valuation of the gold articles you are willing to pledge. In a regular and online gold loan, you need to carry your gold valuables to the branch to get them appraised. The in-house appraiser values your gold based on weight, purity, and current gold price. Next, your loan amount is calculated based on the LTV Calculation which is known as the ‘Loan to Value Ratio’. The loan amount sanctioned is a percentage of the pledged gold value. This entire process is completed in the comfort of your home when you opt for Gold Loan at Home facility.
Documentation: The documents required are fairly simple. In a gold loan at home or doorstep gold loan facility, an executive shall collect these documents from your home.
Approval and Disbursement: Once all the above steps are satisfactorily completed and the customer has consented to the loan amount and charges, the gold loan is approved and the funds are transferred to his/her bank account. Since in a doorstep gold loan, all formalities are completed at home, the executive visiting your home requests the branch to release the loan amount, after completing all due diligence checks.
1. Any one of the following as identity proof:
- Aadhar card
- PAN card
- Voter’s ID
- Driving license
- Job card from NREGA
2. Any one of the following as address proof:
- Aadhaar Card
- Postpaid Bill/Landline Bill/ Water Bill/ Electricity Bill
- Address Updated in Bank statement/Bank Passbook
- Driving License
- Voter ID
- Rent Agreement (With Latest Owner's Electricity Bill)
- Gas Bond Paper with the latest receipt
- Credit Card Statement
Muthoot Finance Gold Loan
Whether it is a regular, online, or doorstep gold loan; getting funds against your gold has never been so simple and quick. You can browse through the interest rates of the many gold loans on offer with the Muthoot gold loan interest rate calculator. Apart from this, you can easily calculate your estimated loan amount and online EMI calculator. With Muthoot, you get the best gold loan interest rates, gold value and exemplary customer service. Apply today!
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