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What are the procedure, merits, and demerits of a gold loan?

October 02, 2021 | posted in News | posted by : Manappuram Finance
Gold loan companies have been the saviour in times of urgent needs. Mortgaging the gold ornaments at the lowest gold loan interest rate, people could find the fund for varying requirements. A prominent factor to note here is that India is one of the biggest importers of gold.
Above all, India is the biggest importer of gold for domestic purposes. The yellow metal has been of multiple use for individuals. It is one of the safest tangible investments. Further, the gold ornament can be used for a gold loan with low interest during a financial crisis.   
Manappuram Finance is proud to be the gold loan company that offers finance at the lowest gold loan interest rate. Our gold loan process has been quicker than the best gold loan banks. With this pragmatically designed approval procedure, the customer can obtain a gold loan with low interest. Making us the first choice among gold loan companies and gold loan banks.  

What is the Procedure for a Gold loan?

Gold loan processing and approval procedures would differ according to the gold loan companies and gold loan banks. A loan against gold is a secured loan, hence requiring minimal documentation only. In that too, we have been the leading gold loan company that introduced innovative customer-oriented measures.   
We believe it is our responsibility to extend optimal financial assistance to people. A small push, a little fund, is all that people need at times, to gain great accomplishments. We have been instrumental in recuperating entrepreneurs, homemakers, self-employed professionals, and others who have been seeking finance to return to the track of growth. Our lowest gold loan interest rate ensured that the gold loan is not burdening the borrowers.
The gold loan procedure followed by us is elaborated here. We offer two methods for gold loans, traditional gold loans and Online Gold Loans (OGL). The customer can choose the best facility for finance requirements.

Gold loan Procedure at Manappuram Finance

The traditional gold loan procedure is similar in most gold loan companies and gold loan banks. Although everyone offers a gold loan with low interest, the reality may differ. The fact may be far from reality. The lowest gold loan interest rate might turn out a trick to lure clients. We have made it a point to offer the gold with low interest so that we can be of support to society and play a prominent part in nation-building.

Submission of Application – The borrower has to fill out an application for the gold loan. The application would need just the basic info regarding the customer, including the personal details, address, and signature agreeing to the terms and conditions.

Documents – Every gold loan company or gold loan bank would need documents confirming the borrower’s identity and address. The identity proof could be an Aadhar card, voter’s ID, license, PAN card, and so on.  Similarly, address proof could be voter’s ID, passport, ration card, telephone bill, etc. The documents are to be submitted along with the application for the gold loan. Once you have handed over both, you are ready to receive the gold loan with low interest.

Hand Over the Gold – Hand over the gold to be pledged to the executive. Our trained and experienced executive will check the weight and purity of the gold ornament in front of you. S/he will brief you on the details regarding the weight and purity of the gold, as well as, the maximum gold loan amount possible. You may confirm whether you want to go ahead with the gold loan processing or not. Rest assured, we are one of the gold loan companies in India that offer the best value for gold. Our Loan to Value ratio (LTV) is higher than any other gold loan company or gold loan bank. In addition to providing the lowest gold loan interest rate in the country.
The money would be disbursed in a matter of minutes subsequent to the above-mentioned process. You need not wait for hours as in the case of many of the gold loan banks. Our team has been proficient enough to comply with the formalities efficiently, to conclude it without any delay.

Online Gold Loan (OGL) Facility at Manappuram Finance

OGL has been a novel gold loan facility introduced by us. This has been formulated by understanding the money requirements during odd hours. Imagine the complications if one needs funds during the night on any given day or in case a sudden emergency arises on a Sunday.
Earlier the only way during such a scenario was to take a loan from individual lenders. They would charge an exorbitant interest rate on the gold loan, pushing one to a debt trap. In all probabilities, the borrower will lose the gold once it is mortgaged with a cunning money lender.
Online gold loan is an instant gold loan facility from Manappuram. With this, the client can receive a gold loan with low interest on any day any time. The only thing he or she should do is to register for the OGL at one of our branches. The lowest gold loan interest rate is assured in OGL as well.
After registering for OGL, the gold would be kept in our lockers. The safe-lock facility and 24x7 security system ensure that the gold ornament is safe and secure. The customer can apply for an online gold loan or the instant gold loan through our website or OGL mobile app. The money would be credited to the linked savings bank account instantly.

What are the Merits of a Gold loan?

The merits or advantages of gold loans are what make them the most useful finance option. We have been supporting borrowers with the lowest gold loan interest rate. Our gold loan with low interest rate has been attracting customers to us, instead of the best gold loan banks and gold loan companies.

Gold loan with low interest – The competition among the best gold loan banks and gold loan companies has been advantageous for borrowers. The interest rate on gold loans has come down remarkably. Some of the top gold loan companies like ours offer the lowest gold loan interest rate. Forget personal loans and business loans, and choose gold loans for any type of financial requirements.

Minimum documentation – Formalities for processing and approving a gold loan are the bare minimum. The borrower just needs the documents that affirm his or her identity and address. Hand over the collaterals, along with the documents, to the gold loan company, and your finance is ready.

Quick processing – Gold loans are approved in a matter of minutes, especially in the case of Manappuram Finance. We are known for the fastest processing and approval of a gold loan with low interest. You may compare us with the other gold loan companies to confirm the same.

Minimum processing fee – The processing fee for the gold loan would depend on the lender or the gold loan company. Even the best gold loan bank charges a processing fee based on the gold loan amount. That means the gold loan processing fee would go up with the increase in the loan amount. At the same time, we charge the lowest processing fee of ₹10 across the spectrum.

Foreclosure penalty – A few gold loan companies and some of those which are known as the best gold loan banks charge foreclosure penalties. Nonetheless, the majority, including Manappuram Finance, do not charge a pre-closure penalty on the gold loans. We offer the lowest gold loan interest rates and client-centric services.

Salary proof not required – You don’t have to submit the statement of salary or income details for obtaining a gold loan. A gold loan with low interest can be sought even if you don’t have a regular income.  
Credit score and credit history not checked – CIBIL score is a matter of concern for the borrowers considering personal, business, and other types of loans. It is not an issue in the case of a gold loan from the best gold loan banks or gold loan companies.

What are the Demerits of a Gold loan?
Gold loans have a few demerits as well. Still, the gold loan with low interest may be the ideal finance option compared to other loans.

The gold loan amount will depend on the weight and purity of gold – The best gold loan banks and gold loan companies would examine the weight and purity of the gold. The gold loan approved would depend on both.

LTV has an important role – The Loan to Value ratio (LTV) has a direct impact on the loan amount. The loan approved would be based on the LTV decided by the specific lender.

You may lose your gold ornament – Defaults in loan repayment will lead to the loss of your beloved gold ornament.
Are you thinking of a gold loan at the lowest gold loan interest rate?
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