Gold is the domain of the womenfolk. However due to the changes in the times, men also started liking gold in India. Loan taken against the gold ornaments in exchange of the money is known as the Gold loans.
Need For Gold Loans:
Gold Loans are very important since the ancient times in India. During various social events, like marriage, religious events, need for gold has increased considerably. Hence people love to go for gold. Many agencies like Manappuram gold loans, Muthoot Gold Loans and HDFC gold loans are making presence in India.
Document Required For Taking Gold Loans:
Documents required for taking up gold loans are as follows:
One need to have identity proof like Voter Id, Pan Card, Passport
Some Passport Size Photographs
Ration Card Xerox
Residential Proof Document
Employee ID Xerox
Salary slips of last three months
Eligibility Criterion For Taking Up Gold Loans:
The eligibility criterions for taking up gold loans in India are as follows:
- Age must be above 21 years to 60 Years
Positives From Taking Up Gold Loan
Some of the positives from taking up gold loans are as follows:
Effective Loan Disbursement: Gold loan play a good role in effective distributions in a logical manner.
Low Interest Rates: To be honest, gold loans has got a very low rate of interest compared to others. This makes gold loan one of the most sought after loans in India.
No Hidden Charges: A gold loan in India do not have any hidden charges and hence easy to obtain.
Highly Convenient: Getting Gold loans are very convenient compared to other loans. One needs to pledge your gold with bank/private institution in order to make sure you get the required loan.
Very Less Processing Time: A gold loan does not requires, complicated documentations. Banks require very less hours in processing the gold.
Does not Require Your Earnings: In most of the situations, gold loan does not require proper income proof. If you are unemployed, you can still take up the gold loan, provided you are above 21 years of age.
Zero Credit Check: You can easily get loans from any financial institution. You need not worry about credit history. Since gold is used as security, lender will not go in for credit history.
Negatives From Taking Up Gold Loans:
Some of the disadvantages of taking up Gold Loans are as follows:
Anybody Is Eligible For Gold Loans: Any person having money and power to payback can go in for gold loans. This makes entry of black money a normal situation in Indian economy. Individuals associated with terrorist, Black marketing groups will get easy money.
No Tax Advantage: Taking gold loan, never gives any kind of tax advantages compared to other tax saving instruments.
Less Resale Values: Gold has very less resale value and hence few are willing to pay in the form of cash. Chances of cash deductions are high, if the Gold has been purchased from some other Jewellers.
Problems In Storing: Lack of investment in gold can be risky/expensive. During economic breakdown/recession, it is not reliable. Storing gold is not good, for long periods, as it can lead to discoloration.
Everybody knows value of investing in gold. Gold loans are ideal for people, requiring quick cash in India.
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