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3 Crucial Situations Where Doorstep Gold Loan Can Help You
In an unexpected financial emergency, most people seek sources for quick monetary support or fast cash. While there are many options to get financial aid, a gold loan is the most popular one due to its ease and fast processing. It helps you avail required funds at attractive interest rates by keeping your gold ornaments as security with the loan provider. While doorstep gold loan is a new concept, it is getting popular among borrowers in India due to the ease it provides to customers, like acquiring funds without even visiting the branch. Though financial emergencies cannot be predicted, a doorstep gold loan from MuthootFinance and other leading companies is the best way to overcome the situation. Here are some crucial situations where you can apply for a gold loan at your doorstep.
Medical Crises
One of the most financially draining situations is any sudden medical expenses. Despite having emergency funds and health insurance coverage, a major accident or a severe disease can keep all the financial plans haywire. In such situations, when one needs to make the high treatment costs, instead of taking an expensive loan and paying high EMIs every month, it is better to take a gold loan.
Educational Requirements
Often, study loans are not provided to borrowers for different reasons like poor credit history, lack of adequate collateral, etc. In this situation a gold loan can be extremely helpful for borrowers. Education is vital to boost your employability and improve your chance of getting a high-salary job. It should not be hindered in any conditions. By using gold assets as collateral, you can conveniently access financial aid to pay for your child’s courses, higher studies, and training programs.
Business Expansion
Whether it is a startup or the expansion of an established business, extra funds are required to meet the needs. A gold loan is the best way to get funds for starting a business, buying equipment, and managing daily operations. The borrowers can get a sufficient amount against their gold through doorstep solutions with simple steps and minimum documentation.
Make sure to select a reliable bank or NBFC to apply for a doorstep gold loan. For example, Muthoot Finance provides a wide range of gold loan schemes at the best interest rate with a 30-minute doorstep service.
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3 Most Important Things to Know Before Taking a Gold Loan
People often take gold loans to meet some unwarranted expenses. One of the best perks of getting a gold loan is that it can provide you instant credit if you meet all the conditions of the lender. If you want to figure out the cost of your loan you can use a gold loan calculator to calculate the amount that you will get for a specific grams of Gold. Mentioned below are some things that you should know before taking a gold loan:
- Repayment Plan
The repayment options for a gold loan are convenient. For example, some lenders may ask you to pay only the interest amount during tenure and the principal amount at the end of the term. While other lenders do not apply any prepayment or foreclosure charges on short-term loans. You can find this out by comparing the terms and conditions of the top lenders and then making your final decision. In some cases, you can even get back some of the collateral by paying the designated amount. It makes it easier for you to reclaim your assets without any worries.
- Eligibility Criteria
If you want to take this loan you should be an Indian citizen, your age must be above 21 years, and the purity of gold that you give as collateral should be 22 Karat. The purity of gold plays a crucial role in deciding the amount that you will get against the collateral. Unlike other loans, you do not need to show your income proof and credit score to be eligible.
- Suitable Gold Items
You can only keep gold jewellery items like necklaces, earrings, bangles, rings, etc., as collateral to get a loan from a bank or non-banking financial company. Items such as gold bars, idols or utensils cannot be given as collateral.
You can take a gold loan while planning a wedding, manage educational expenses, and pay hefty medical bills in an emergency. It can also be used to meet your business requirements in case of unforeseen circumstances like layoffs, a pandemic, natural disasters, etc.
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Mistakes to Avoid When Availing a Doorstep Gold Loan
Known as an appreciating asset, gold is considered a symbol of wealth and prosperity. It is a valuable article that comes in handy to get a loan in times of financial distress. Doorstep gold loans, also known as gold loans at home, are an extended scheme of gold loans offered by banks and NBFCs. As the name states, the whole process is completed from the comfort and safety of the borrower’s home.
However, because of the high popularity of this mode of gold loan application process, there are a significant number of lenders offering doorstep gold loans. Filtering out reputed and genuine lenders from the masses requires due diligence. Listed below are some early warning signs you should keep in mind when selecting a doorstep gold loan lender.
Lack of Transparency
Transparency is the cornerstone for banks and NBFCs looking to gain the trust of their customers. It is also one of the most important warning signs you should look for when availing of a doorstep loan. A lender who lacks transparency rushes through the gold evaluation process at the time of the visit and is not upfront about their loan terms, such as processing fees, inconsistent gold valuation, and incomplete documentation, and should be avoided.
Poor Customer Service
Efficient customer service is the building block of any business. To ensure a smooth loan process, the lender must ensure that customer support is readily available to the customer. If you have trouble reaching out to customer support, your doorstep gold loan application is not processed in time, or the team is unwilling to address issues proactively; consider these as warning signs that the lender is not dependable.
Unreasonable Interest Rates
Interest rates can significantly affect the overall cost of the gold loan. If the interest rates offered by the lender are notably higher than the prevailing market rates, it is likely that the lender is not credible. Availing loans from them can lead you to bear a higher financial burden and loan duration.
Doorstep gold loan lenders offer the added advantage of applying for a gold loan online via their website or a mobile app. However, it is important to be cautious during the process. One should consider reputed lenders like Muthoot Finance, where a trained professional visits the borrower’s home and performs the entire process with complete security and transparency.
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Reasons to Apply for a Gold Loan at Doorstep
While gold loan has always been the most preferred option for people in urgent need of cash, the doorstep facility has made this loan even more popular among customers in India. In this facility, you can apply for a gold loan from the comfort of your home without any hassle. You do not have to visit a bank or NBFC in person to complete the documentation formality and collect the amount. Instead, a representative from the bank visits your home at a specified time, evaluates the value of the gold articles, checks the documents, and instantly transfers the fund to your account. Here are some key reasons why to apply for a gold loan at doorstep.
Easy Accessibility of Funds
With a loan at home, you do not have to physically visit a bank or NBFC to get the loan amount against your gold. It is an ideal option for those unable to visit a bank for any reason or people who have a busy schedule and want to save time on traveling. Once you apply for a doorstep gold loan, the executives will be at your doorstep within a specified time. After gold assessment and KYC, instant money is transferred to the customers’ bank account in a few minutes.
Safety of Gold
There is no denying the fact that customers worry about the safety of their gold. However, in a doorstep gold loan scheme, executives ensure the utmost safety of your gold and take all the precautions to carry and keep your gold in lockers. They make sure the evaluation of the gold is done safely and that the articles are transferred to the bank branch carefully.
Ease of Repayment
In doorstep gold loans, customers get the facility to repay the amount with ease and convenience. All leading loan providers like Muthoot Finance provide a range of digital payment services, including the WebPay facility and Gold Loan@Home mobile application. However, the repayment tenure of the loan depends on the scheme that a customer selects.
So, these are some of the best reasons to apply for a doorstep gold loan. Make sure to select a reliable bank or NBFC to get your loan.
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3 Key Tips to Get the Best Valued Gold Loan
A gold loan is useful when you need immediate funds for personal use like higher education, marriage, medical emergency, and the like. Borrowing money against gold can be a quick and easy solution for your urgent financial needs. However, you should not make that decision in a hurry. Research thoroughly to find the best non-banking financial company (NBFC) or bank to take a gold loan.
Reputed NBFCs like Muthoot Finance provide gold loans with reasonable interest rates. Mentioned below are some useful tips that will help you take the best-valued gold loan.
- Compare Lenders
Many NBFCs and banks with well-planned gold loans are available in India. Some even provide loans with at-home services where you can schedule an appointment online and their executives will visit your residence to assess the value of your gold ornaments. After which they will give you a quote for the gold loan. This way, you can start the process of your gold loan in the comfort of your home! You can compare lenders according to the schemes they offer or the kind of repayment plans they provide, the rate of interest on the loans, and other factors to make the best decision.
- Scout the Loan-to-Value Ratio (LTV)
It is imperative to scout the loan-to-value ratio (LTV) offered by different lenders. LTV is the percentage of the market value of the gold that the lender is willing to loan. Thus, borrowers should note this ratio may vary from one lender to another. Although the Reserve Bank of India has capped the LTV to a certain limit, the rules may change so you may have to keep an eye out for it.
- Pay Attention to the Loan Tenure
The loan tenure is one of the primary factors based on which you take a loan. It also affects the interest rate of a gold loan. In most cases, short-term loans have higher interest rates than long-term loans.
Several differentiating factors make some lenders stand apart. To find the best option, you should base your decision on the factors mentioned above and read more about Muthoot Finance gold loan interest rate calculator to understand how a loan is calculated and disbursed.
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Top 3 Benefits of Opting for a Gold Loan Balance Transfer
Many reputed banks and non-banking financial companies (NBFCs) allow the transfer of outstanding gold loans to borrowers in India. It is beneficial to find a lender who offers higher loan amounts, better security of the pledged gold, flexible repayment schemes, etc.
However, if a person has taken a loan from a bank or NBFC which does not offer these benefits, they can apply for a gold loan balance transfer.
What are the Benefits of a Loan Balance Transfer Facility?
The best part about opting for a gold loan balance transfer is that a borrower can choose to switch their loan from one lender to the other through a balance transfer. This helps the borrower to reduce their overall liability. Mentioned below are some other benefits of a gold loan balance transfer:
- Choose a Reasonable Interest Rate
There are competitive rates offered by renowned banks and NBFCs for gold loans. Borrowers can choose one for much-needed relief from hefty amounts of interest payments against their loans.
- Respite from Revised Terms
There can be times when a borrower may have agreed on a condition or clause in which their gold loan terms get revised over some time at the lender’s discretion. But, this can upset their finances and lead them to pay hefty amounts that they did not sign up for. In such cases too, a borrower can opt for a gold loan transfer.
- Avail Excellent Customer Service
Sometimes, the lender may promise certain support to the borrower at the beginning of the tenure of the loan. As a borrower, you may not be satisfied with their services. It is possible that you may not be aware of certain terms and conditions as well. So, it is best to find a reputable lender and get a gold loan balance transfer.
These were some of the advantages of goal loan balance transfer that can help you repay your loan on easier terms.
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Different Types of Gold Loans Based on Repayment Options
A gold loan is a secured loan that allows a person to borrow a certain amount of money by pledging their gold ornaments as collateral. It is a fast and simple way to meet urgent financial needs and can be availed at lower interest rates as compared to other unsecured loans. However, before you apply for a gold loan, you should be aware of the types of gold loans that are available and how they differ based on their repayment options, so you can choose one that suits your needs. Before applying for a gold loan, borrowers should explore the different repayment plans offered by top gold loan NBFCs like Muthoot Finance.
Gold loan repayment options that you are most likely to come across can include:
Paying Interest in months and the Principal Amount as a Lumpsum at Tenure End
In this type of repayment plan, the borrower is liable to pay a certain amount of money as monthly payments, which goes towards paying the interest applicable on the loan. Then, at the end of the loan tenure, the borrower is required to repay the principal amount that they had borrowed in a lump sum payment. This type of gold is suitable for those with irregular incomes or who are expecting a large inflow of money in the future.
Paying Regular Monthly payments towards Principal and Interest Repayments
Another popular type of gold loan among borrowers, repayment involves a higher repayment which comprises both, principal amount and interest repayments. This option is most suitable for those with a fixed monthly income who can afford a higher EMI. In this type of loan, repayments can be completed quicker.
Bullet Repayments
This is a lesser-known gold loan repayment. For this type of gold loan, borrowers do not have to pay any monthly payments during the loan tenure, as they are supposed to make a full repayment for both the principal and interest amounts at the beginning or the end of the loan tenure. This option is suitable for those with very irregular incomes or who are expecting a huge lump sum payment soon. While this type of gold loan comes with the advantage of zero monthly payments, a borrower should also ensure that they are able to arrange a large amount of money at the start or the end of the loan tenure.
Partial Payments and Foreclosure
At several financial institutions, like Muthoot gold loan repayment plans that offer a lot of flexibility to the borrower are very popular. With these types of gold loans, borrowers can make partial repayments in each quarter or once in 3months or 6months towards the principal and interest amount as and when they have surplus funds. They can also foreclose the loan before the decided loan tenure ends by making a full repayment for the outstanding amount. This option is suitable for those who want to reduce their debt burden and save on interest charges. This type of gold loan allows borrowers to adjust their repayment schedules according to their cash flow and convenience. However, borrowers should be aware that some NBFCs may impose charges or penalties for partial pre-payments and foreclosure.
As convenient services like the Loan @ Home facility making gold loan more accessible, the several options in gold loans, based on the repayment plan, help financial institutions like Muthoot Finance ensure that all kinds of borrowers can find a suitable financial solution that meets their needs.
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Save Time and Money with a Gold Loan Calculator
If you’re willing to take a loan against your gold, it’s important to do your homework and understand the costs involved. One tool that can help you make informed financial decisions is a gold loan calculator. A gold loan calculator can help you estimate your monthly payments, interest rate, and total repayment amount, saving you time and money in the long run.
Here are some of the benefits of using a gold loan calculator:
Quick and Accurate Calculations
A gold loan calculator can quickly calculate the loan amount, interest rate, and repayment schedule based on the current market value of your gold. You can easily adjust the loan amount, tenure, and interest rate to find a repayment plan that suits your financial situation.
Easy to Use
Gold loan calculators are simple and user-friendly tools that can be accessed online or through mobile apps. You don’t need any special skills or knowledge to use them, and they can be used anytime, anywhere.
Saves Time and Money
By using a gold loan calculator, you can avoid the hassle of manual calculations and get quick estimates of your monthly payments and total repayment amount. This can save you time and money in the long run by helping you choose a loan that fits your budget.
Helps You Compare Loans
With a gold loan calculator, you can easily compare the interest rates and repayment schedules of different lenders. This can help you choose the best loan that meets your financial needs and goals.
A gold loan calculator is a smart tool that can help you save time and money when taking a loan against your gold. By using a gold loan calculator, you can easily estimate your monthly payments and total repayment amount, and choose a loan that fits your budget and financial goals. So, before you apply for a gold loan, make sure to use a gold loan calculator to make an informed decision.
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Know about the Procedure & Benefits of Doorstep Gold Loan Service
Gold has been used as a financial mode of transaction for as long as anybody could remember. The availability of easy loans against gold with quick disbursement and flexible repayment has been a key to its wide popularity.
Doorstep gold loan is an initiative introduced by banks and NBFCs to smoothen the loan procedure for their customers. From getting the gold evaluated to shipping it off to the branch, all happens from the comforts of the borrowers’ homes and is handled by an assigned company executive.
An at-home gold loan is a boon for customers who are pressed for time and are unable to visit the branch office. All the transactions are completely safe and transparent and the procedure is quite similar to that of an offline or online loan application.
Application Procedure
- Step 1: Use the lender’s website or phone application to book an appointment for an at-home gold loan service.
- Step 2: Submit your application, and an executive will be assigned to you for a visit to complete the evaluation process.
- Step 3: After carefully reviewing the quality of your gold and appraising you on the suitable schemes, a documentation request will be sent to the branch.
- Step 4: Once all formalities are completed, your gold will be transported for safekeeping, and the loan amount will be credited to your bank account.
Benefits of At Home Gold Loan
- Doorstep gold loan provides additional convenience to the borrower. Not only is the process hassle-free, but it also does not require any branch visits.
- Since a personal company executive is assigned to help fulfil your application, the responsibility to safe keep your gold solely depends on the executive. It eliminates the efforts of transferring it on your own.
- The executives are trained professionals and have the capability to resolve any queries that their customers may have.
Doorstep gold loan service is a relatively simple and easy procedure that provides easy processing, low-interest rates, flexible repayment terms and full security of the borrower’s gold assets.
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Loan at Home 