If you need some extra money available and are looking for a short-term loan option, you may not know that you can get a gold loan. There are a variety of gold loan schemes available with different features.
What Are Gold Loans?
A gold loan is a secured loan where you keep your gold with a bank or a financial institution as security and avail, or access, capital against your gold. You keep your gold, but it will be kept by the bank or institution until you have paid off the loan amount and the loan is closed.
A secured or collateral loan, similar to a home equity loan where you borrow against the value you have in your house, but in this case, you borrow against the value of the gold you own when you need some extra cash or fluidity. Because they are secured loans, they can help you get a lower rate or make it more likely for you to be accepted for a loan amount.
If you have a regular and higher income, you may be able to get a gold loan at a lower rate of interest.
You can use gold ornaments, such as gold jewellery, as well as gold bars or gold coins for such loans. You will need sufficient gold assets in order to be able to borrow what you need. A lender will offer a certain percentage of the total value of your gold and gold ornaments for your loan amount. Often, only gold is considered; even though you may have a gold ornament with valuable stones in it, you will only be valued based on the gold pledged (offered by you as collateral for the loan).
How Much Can I Avail (Gold Loan)?
The amount you can access depends on the value of your gold and the loan-to-value ratio that your lender offers. If you have a larger amount of quality gold, and you are offered a higher loan-to-ratio value, such as 70% of your value, you will be able to borrow more. While you can find a gold loan calculator online, it is best to actually get a quote.
Loan to Value Ratio (LTV)
The lender will offer a certain percentage of the value of gold as your loan. Usually, a rate of about 55% to 65%, is offered, so it is a safer loan for the lender. There are also percentage caps or a maximum limit.
If you have a gold valuation of $1000 and are offered a TLV of 65%, the maximum loan you can get is $650.
A gold loan is generally a short-term loan, ranging from about six months to two years. Most lenders will have a maximum limit tenure.
Gold loan interest rates vary, depending on your credit score and other financial conditions at the time. Your gold loan interest rate may also be impacted by the purity of the gold. However, because the loan is secured, you may be eligible for more attractive interest rates than you might otherwise receive.
Who Should Avail Of A Gold Loan?
Since these are short-term instruments, they are better for meeting short-term money needs only. Naturally, you must also have a sufficient amount of gold available.
If you have a low credit score, because you are leaving your gold with your lender as collateral, you are more likely to be able to get a loan, and possibly at a better rate.
With better rates, these loans can be a better financial choice than a personal loan with less optimal interest rates, saving you money on interest.
Gold Loan Eligibility Criteria
You need to be 18 years or older to apply for a gold loan.
Usually, only gold ranging in quality from 10K to 24K is considered for a gold loan. The lender will assess your gold and perform a valuation. Valuation fees may apply. Your credit history and other financial details will also be checked.
At this point, the lender will decide whether to offer loan terms and the details of the loan terms.
Gold Loan Process
With Green Moolaa, the entire process of getting your gold loan is simple, pleasant, and fast. We consider all of your gold, and will also consider diamonds. Gold jewellery, watches, bullion, coins, bars, and diamonds are all accepted.
Firstly, our experts examine your gold carefully for valuation to determine the maximum loan amount we can offer you. We never damage your goods during these assessments.
Quote and Offer
We then offer a free, no-obligation quote, so you can make a decision appropriate for you. If you agree, you will receive an instant gold loan, for immediate cash for your needs. Our quick loan disbursal process means you are in and out in a couple of hours.
Green Moolaa guarantees the best value and interest rate for your gold loan, unlike most online gold loan providers. After assessing your gold, we provide flexible repayment options, including repayment tenure. We work together with you to find a payment plan that meets your needs, with monthly or quarterly payment options. Unlike many other lenders, we don’t need to check your credit history.
We securely and carefully store your gold in a safe place to prevent damage or theft. We will advise you on the documents required.
Loan Payment and Return of Goods
Once you have paid back your loan amount, you can arrange to pick up your gold, which will be in the same condition it was dropped off in.
Ready for a Gold Loan with Green Moolaa?
We guarantee superior customer service when we offer gold loans; we treat every customer with professionalism and respect.
If you need to raise funds for a temporary expense and have gold that you don’t want to sell, Green Moola can help, while guaranteeing the best value and interest rate for your loan. If you decide instead to sell your gold, we offer the highest prices for that, as well.
You also won’t negatively affect your credit score, as it won’t show up on your credit report.
We will guide you through the process, answering all your questions, as we know it can be confusing if you have never had to avail of a gold loan before. We will help you get your cash faster, and easier, with no hassle.