Everyone enjoys wearing gold, however, nowadays they have also realised how important it is to invest in gold articles. Gold has now become the fastest way of getting cash. The finance industry has considered this and has made a few gold loan schemes that help you liquify your physical gold within a few hours. The loans offer you great interest rates, long comfortable tenures and a large sum of up to 20 lakhs. But sometimes you do not require but comparatively a small one like a gold loan for 1 lakh. When you apply for this type, you face a different set of features and eligibility criteria. Don’t worry, we have got you covered.
How to get a gold loan of 1 Lakh
Given below are the steps you need to follow to get a gold loan of 1 lakh.
- Carry out a comparative search of your
- Visit the website of the lender.
- Search for the option of “Gold loan”.
- Enter the personal information required or the ones made mandatory by the lender.
- Complete the OTP authentication to gain the best offer based on your eligibility.
- Submit the form online.
- A representative from the lending party will contact you to finish off the remaining formalities.
Features of Gold Loans
Now that we have understood the process of how to get a gold loan for 1 lakh, let us check out the features that are available with the same.
Gold loans are said to have the lowest rate of interest compared to all other loan schemes. The rate of interest that is offered in this loan can start from 6.90% and can go high up to 14.00%.
Whenever you take a gold loan, you put your physical gold at deposition. Hence, with this security, you require minimal documentation and eligibility. You can get your loan amount within 1 hour.
Can be liquefied
Gold loans are termed ATL, which stands for anytime liquidity. It means that you can liquify your gold whenever you like. Thus, this makes gold loans the easiest and fastest way to borrow a loan.
No need to submit income proof
Compared to all the other loans present in the finance world, a gold loan is the only scheme where you do not need to show any income proof. Therefore, whether you are a salaried employee or self-employed you can apply for a gold loan.
When you issue a gold loan, you are not charged any processing fee. Even if some lenders do, the fee is no more than 2.5%. This makes gold loans one of the most favoured loan schemes.
The credit score is not mandatory
Since in this loan, gold is kept as collateral, you don’t need to have a credit score above 650. However, repaying the gold loan can help you build a better credit score for the near future.
Security for Gold
When you take up a gold loan, the lender offers immense security for it. They safely put your gold in their lockers until you repay the loan amount fully. They will give you your gold back at the end of the loan.
Eligibility Criteria – Gold loan of 1Lakh
Now that we understood the features, let’s have a look at the criteria that makes you eligible to apply for a gold loan of 1 lakh.
- You need to be an Indian citizen.
- The age limit for the gold loan of 1 lakh is between 18 to 75 years.
- There is no restriction to the form of your employment. You can be a salaried employee, self-employed, homemaker or even a senior citizen.
- The tenure that is offered to you in this loan scheme, is either a day or up to 36 months i.e 3 years.
- The gold that you are going to deposit should be at least 18 to 24 carats.
The interest rate for a 1 lakh gold loan
The table given below depicts a few banks and the interest rates that they offer if you take up a gold loan for 1 lakh.
The interest rate offered
|Muthoot Finance||6.90% to 23.00%|
|State Bank of India||7.40%|
|HDFC Bank||9.00% to 15.00%|
|Indusland Bank||9.00% to 17.00%|
|ICICI Bank||10.00% to 19.80%|
|Axis Bank||14.00% to 16.50%|
Gold loans are known for its benefits. Not a lot of loan schemes present in the market are as flexible as a gold loan. When you issue a 1 lakh gold loan, you are given great facilities. You get an attractive rate of interest starting from 6.90%, you do not require any CIBIL score and there is no restriction as to your employment status.