Are you looking for rupeek gold loan then this article for you with all the necessary information about rupeek gold loan.
Gold is among the most sacred metals of Indian culture. So much sothat Hindus observe a certain celebration, known as Dhanteras each year, just prior to Diwali celebrations. Happily, India has enough gold to meet the huge demand for this precious metal. In 2019, India’s estimated gold reserve was about 600 metric tons, according to according to Statista.
Gold is also among the most important components driving the jewelry market in India. According to recent estimates the sector of jewellery will contribute about Rs.6 billion in India’s GDP in 2021. Yet, due to its positive connotations, people view gold as a non-valued asset.
What Is A Gold Loan?
An gold-based loans is a loan made against the gold that one owns. The borrower must make a pledge of their gold ornaments to an institution that is not a bank, in which case the NBFC will loan funds to the owner of the. In the majority of cases, the borrower will only receive a specific proportion of the value of gold that is known as the loan to value (LTV).
- The Reserve Bank of India capped LTV to 75% in gold-based loans.
- At present, consumers can choose to apply for principles that cover at least 90% gold value. This is applicable to gold loans made on or prior to the 31st of March, 2021 according to an RBI announcement.
For example, if your gold pledged to you is worth approximately Rs. 1 lakh according to the current market rates You can apply for financing as high as Rs.90000. It is important to understand the fact that LTV of gold-backed loans could be less than 90%, but not greater than 90%.
How Much Gold Do Indians Own?
Although it’s impossible to determine the exact amount of gold holdings of Indian families, some estimates suggest that it’s around 25000 tonnes. This huge amount of yellow metal is just being stored in lockers and safes and not being used within an Indian economy. A small amount of the amount of Rs. 110 lakh crore investment into the economy of the nation could enhance the GDP substantially.
Although selling gold is one method to do it, a different option could be to collateralize the same to get the benefit of a Gold loan.
Rupeek Gold Loan
Rupeek gold loans can be the perfect alternative for those who are not eligible for traditional loan options. For these loans to be able to be accessed you must be at least 18 years old. In addition, you will need to possess gold or jewelry of the purity that is recommended. So, you do not have to pass credit scores or any other requirements to be eligible in these types of loans.
The security that is the base, i.e. the gold, reduces the risk of lenders, giving them the ability to relax eligibility rules. If borrowers are unable to pay the loan within the specified period, the financial institutions have the right to take the pledged asset off their hands to recuperate any loss.
Rupeek Gold Is Eligible As Collateral?
Although many lenders permit people to put up their gold-based items but they have to meet certain basic requirements. In particular, the product of interest must be of the purity of 18-karat or higher. In addition, some reputable companies limit hypothecation to jewellery made of gold only. So, you won’t be able pledge gold bars or coins.
Documents Necessary For Rupeek Gold Loan Application
While the exact procedure for documentation will differ for different lenders, the following are the documents that a prospective borrower will require to submit
- KYC documents Documents for KYC Aadhaar card the PAN card or Voter ID driver’s license, passport and other
- Address proof: Aadhaar card or passport, voter ID utility bills, driving license and more.
To determine whether additional documents are required the borrower must ask about it while seeking out ‘gold loan lenders close to me’.
Features And Benefits Of Rupeek Gold Loan
Below are some of the main reasons for why rupeek gold loan have gained the popularity they have recently –
- Speedy Approvals And Disbursals
Instead of waiting for long periods of time waiting for loan proceeds to be deposited into a bank account Gold loan borrowers usually receive funds in only a few hours following approval. This type of credit is ideal to pay for emergency expenses for example, medical expenses unexpected business expenses and many more.
Alongside the disbursal process the straightforward and easy application process also assists. The majority of lenders have an online procedure, cutting down on time.
- Doorstep Facility Available
If a person is looking for small or big-ticket gold loans, the doorstep credit can dramatically increase ease of use. After submitting the application an agent from the lending institution comes to the home of the borrower to take measurements and then collect the gold along with required documentation.
It is possible to transfer the Gold loan principal is transferred electronically into the account of the person in only a few minutes, following which the representative will transport the gold that was pledged to them to be stored. This procedure removes the need for the borrower to make time from their schedule to visit an office of the gold loan company.
- Affordable Interest Rates
As previously mentioned the security’s underlying value reduces the risk of lending institutions. Because of the low risk level, lenders can afford to make loans to borrowers without imposing a high interest. The low rates guarantee ease of use and the ability to pay. Additionally, the smaller EMIs because of the lower interest rates reduces the financial burdens on those who borrow.
- Unimpressive Credit Score is Not a Hindrance
People often have to deal with rejections on credit applications because of a insufficient credit background and scores. You must score 750 or higher to be eligible for the least secured loans on the market. According to the TransUnion CIBIL report 79 percent of loans are approved to those with a high credit score or rating.
- Immense Flexibility of Repayment
The majority of loans require that borrowers pay equated monthly installments throughout the term of repayment. For gold loans, however one can opt to not pay for EMIs.
The Bullet gold loans repayment is a method that allows borrowers to settle the interest and principal by a lump sum at the close of the loan. By choosing this option, the borrower does not have to pay monthly for debts.
Another option is to pay for the total interest for a loan by monthly instalments , and then pay off the principal amount with a lump amount payment at the end of the term of the gold loan.
These options are extremely efficient, allowing the highest number of people to get gold loans, without straining their budget for the month.
- No Pre-closure Charges
Reputable lenders don’t have any charges in the event that a borrower wants to end his or her current gold loan before the loan’s tenure expires. If you do happen to receive an enormous amount of funds in the course of repayment, you may use this amount to pay back the principal balance. This can aid in reducing interest costs.
In the same way, prepaying part of an loan is not subject to any additional costs. The borrower who is able to pay these extra installments are able to lower their interest charges through reducing the amount of principal outstanding.
This is particularly beneficial to those who are borrowers for businesses, and have to pay penalties for foreclosure or prepayments on their loans. The RBI removed such penalties from individual loans with the August 2019 order.
- Income Does Not Matter
Many loans require that borrowers declare their monthly income and also provide documentation to prove the same. For instance, employees require photocopies of their payslips. Likewise, self-employed persons may be required to submit bank statements, Profit and Loss statements, and more.
The good news is that gold loan applicants don’t need any of these documents. Most banks do not ask you for your income information when you apply for these advances. Even people who have retired and depend on a pension or gains from investments can apply for gold loans without any issues.
- Safe Storage Of Pledged Gold
One of the main issues with collateralizing gold is its security throughout the duration of the loan. The majority of lenders who offer gold loans companies guarantee complete security for their asset, with the highest diligence to return your gold to you following the repayment of your credit.
Some firms go as that they offer insurance plans to customers, which cover the cost of financial loss should the metal being insured be stolen, lost, or damaged while in the hands of an institution of finance.
However, be aware that the asset you have hypothecated is safely stored in bank vaults to ensure its secure storage.
These and other reasons are the main reason for the huge expected growth in gold loans within the country. It is the World Gold Council claims in an document that this specific loan segment will be worth about Rs. 3.44 lakh crores by FY2020. It is expected to continue to grow at an astonishing year-on-year growth of 15.7 percent in the coming two years, bringing it to Rs.4.61 lakh crore by FY22.
Three Distinct Repayment Methods For Rupeek Gold Loans
The borrower can select one of the following options for their dues in addition to the traditional EMIs.
- Interest Payment For this specific scenario one would have to pay for the interest part of his dues each month. However, he is able to postpone the principal payment until the end of the term of gold loans.
- Bullet Repayment In this case, both principal and interest repayments are transferred to the end of the tenure. Therefore, if the gold loan term is 1 year, you don’t have to cover your payments every month. Instead, you could pay with a lump-sum at the end of the 12th month, or after tenure expiration.
- Part Payment When you choose the part payment option, you have the option of servicing the debt with regular EMIs. However, if you opt to pay the amount in advance which is not a part of the loan, it will be taken from the principal balance. The reduction in principal outstanding will result in lower interest rates.
You are able to pick which option you like well. Be sure you choose the right option when you apply for this gold loan as changing repayment methods at the midpoint of the loan isn’t possible.
How To Apply For A Rupeek Gold Loan?
The Gold Loan online application procedure has been designed to be simple and reduce the hassle. This is the complete procedure for submitting an application
- Step 1. Go to the website of the NBFC and select your city of residency.
- Step 2. Fill out the online form giving details like name age, address, contact number and much more.
- Step 3. After you have entered these details then click apply.
- 4. The loan manager will visit your home to evaluate and weigh the gold pledged items.
- 5. Once this test and the formalities have been completed and the loan manager has approved the funds. They will release the gold that was collateralised after the principal amount has reached your account.
This is the end of the online application for gold process. The whole process is quick and offers the greatest ease for the borrowers. Anyone who takes out loans does not have to carry the jewelry, which ensures security for the assets that are being borrowed.
Steps To Follow To Repay Gold Loan
The process of repaying a gold loan is as easy as taking advantage of this credit line. In addition, one is able to pay back the loan via the website or mobile app.
- Step 1. Go to the login page and enter your registered mobile number.
- Step 2.Look to find your OTP in this number, and use it to verify your identity.
- Step 3. The next page provides the pertinent information about a credit card for gold online, such as the how much weight the asset is and loan’s date of commencement and the amount due, the interest due, and much more. Look to find a option for payment, then click it.
- Step 4. Pay the corresponding liabilities by using online banking UPI RTGS as well as IMPS and debit card.
Why Are Gold Loans A Popular Source of Funding for Small Businesses?
The micro, small and medium-sized enterprises employ around 120 million people in accordance with the IBEF study. It is also a significant source of India’s GDP. But, it’s not the type of financial backing that conventional, large-scale companies enjoy. Business loans must meet strict rules of eligibility that prevent small-scale businesses from gaining on the financial aid available.
Gold loans are an alternative to conventional financial instruments. The MSME sector is able to rely on these credit lines that are secured to help them achieve their goals. Even the smallest of businesses are eligible for a gold-backed loan as long as they have the asset to secure. Here are a few business concepts, in which one could seek financing through gold loans, but not via conventional business finance.
- Homemade Food Delivery Business
Some companies thrive at a small scale. Food delivery services such as this, for example, might depend on 20-30 customers. The food is prepared in the kitchen of a home without the use of specialized equipment. The delivery process can be made using the owner’s personal vehicle or a bicycle. A gold loan could help expand a company and allow owners to cover more customers as well as invest into marketing in order to expand the number of clients they serve.
- Hand-made Jewellery Business
Handcrafted jewelry is in great demand, however only a handful of designers have the funds to open a shop or store. Some may also design and sell their creations through online platforms. Although most lenders will not approve requests for business loans to support the same type of business Gold lenders are able to meet your needs. With proper funding for aspiring jewelers, they can open several shops across the country.
- Sudden Accidental Loss of Inventory
If there is a fire that occurs in your textile showroom, leaving the entire inventory in disarray. In normal circumstances, this could result in massive losses which you’ll have to cover from your pockets. In the event of cash shortages, you could increase your challenges further in these occasions.
Gold loans are an immediate solution to these types of problems. The massive cash injection at a low cost, allows you to weather such events without having to end operations completely.
Photographers are highly skilled, however, they face a difficult time when they first start. The expensive camera equipment may be difficult to obtain in the absence of access to financing. The business lenders view photographers as risky candidates and will not accept advances from them.
According to a report from April 2020 gold loans are growing faster than any other retail lending products. The ease of application and the myriad of features that are beneficial are rapidly changing Indians their perceptions of these credit lines. Because the majority of Indian households have jewellery and gold jewelry This rise in the gold loan number is expected to last for some time.
What is an online gold loan?
The Online gold credit is the easiest secured loan you can take to get cash on the spot. The simple eligibility requirements and the high amount of loan can make a gold-based loan among the most well-known loans available in India. Typically, lenders will can approve the loan up to 75% gold’s value on the market; however, occasionally, the upper limit could be as high as 90 percent. The final amount is contingent on the past 30 days’ average price for gold and the grade as well as Karat that the gold. To get this online loan the borrower must download the lender’s application or call the customer assistance line. Following this an officer from the loan department will set up a time to meet and go to the home or office of the borrower and evaluate their gold. The loan amount typically is paid to the borrower’s in a matter of ten minutes after the loan’s approval. The duration from the time of loan application to loan approval could range from a few minutes to one hour.
The benefits of an on-line gold credit
A internet-based gold credit provides unbeatable advantages. For a gold loan to be able to avail you must register your name as the borrower, and take out a mortgage on your gold ornaments. The greatest benefit for a gold loans online is all the process of loan application and the approval process is online. Therefore the location of the borrower is not an issue. The lender usually dispatches an agent for the loanee within an hour of receiving the loan application, who examines the gold and provides a price. If the verification is successful and then approval, the lender will transfer the funds directly to the account of the applicant. With an online gold loan the borrower will receive the equivalent of 75% gold’s value on the market. Because it’s secured loan and a secured loan, the interest rate is much lower than other kinds of loans that are instant. In addition, a person can apply for an cash loan in gold only using Aadhaar Card. Aadhaar card.
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