A Gold Loan is a loan where Gold is kept as collateral. Gold trading has been practiced in the past. Golds and lenders used to store Gold as a form of collateral. Following the establishment of banks, gold pledging in banks began. Gold has significant importance because of its economic value and appearance. Gold gifting is found to be very auspicious in Indian culture.
The procedure of availing Gold loan
The method of obtaining a gold loan is quick. In times of need, a Dena Bank Gold Loan can be valuable. The procedure of availing Gold loans are
Application protocol
The application is a process where one has to appeal to the respective authority for granting certain things. The application for a Gold loan can be completed in the bank in-person visit or digitally by visiting Dena Bank's official website or app. An application contains some personal information along with gold information and other details.
Documentation
This is the most crucial process for acquiring loam. A simple background check is conducted to avoid fraud. KYC documents, along with two passport-sized photographs, are asked to be submitted.
One can submit any one of the Aadhar Card, Driving licenses, Voter IDs, PAN Card as Identity proof. Aadhar card, Ration card, passport, utility bills, or renter agreement for people residing on rent can be submitted as Address proof or residence proof.
The Borrower has to visit the Bank for this procedure. A bank representative will assess your KYC Documents.
Purity test of Gold
Bank authorities do the Purity test of Gold on the premises of the Bank. The purity test of Gold is an evaluation of Gold for its composition, weight, and impurities present in it. The loan amount is sanctioned based on the evaluated gold rate per gram. A purity test is a mandatory test.
Loan Approval
After completing all the procedures and meeting the Eligibility criteria, a Gold loan is sanctioned. A Sanction letter is issued in the name of the Borrower. A sanction letter contains details about the lending bank, loan scheme, gold rate per gram, interest rate, processing fee, prepayment options, tenure period, repayment options, etc., along with the Dena Bank's terms and conditions. After depositing the evaluated Gold in the Bank, the loan amount is reflected in the Borrower's account quickly.
Safety of Gold
The Gold deposited in the Bank is placed in the bag and marked by a unique application no. This is placed in the lockers present in the Bank. Lockers are present inside the Bank's vault. It is safely guarded and kept under surveillance. Bank authorities only enter this room. Each locker has its specific keys. The keys are with one of the Bank authorities.
Repayment options
These choices are given for the fulfillment of the Debt. The loan amount has to be paid over the tenure period chosen by the Borrower. If the Borrower misses repaying an installment, he/she can renew or extend their tenure period, but this has to be done before the expiry of the tenure period.
The three options given for repayments are Bullet repayment scheme, Overdraft repayment scheme, and EMI option.
One has to repay towards month-end, and the principal amount is due at the end of tenure.
This scheme can be available for colossal loan amounts, and the interest is only charged on the amount disbursed by the Borrower.
In EMI, an indicated amount by the Borrower gets deducted towards the end of the month. EMI can be calculated using EMI Calculator. Choices have been given to the Borrower for making a suitable EMI choice.
CIBIL Score and Car Loan
Finding the right car is a tough job, and financing one is even harder, considering loans for cars are a good choice but not easy, either for the loanee or the lender. The loanee has to maintain certain criteria for the bank to consider them as a perceivable borrower. And in this determining process, a credit score plays a vital role. Credit scores are not just for the account holders and the borrowers but also for the lenders. Having a good credit score increases the loanee’s discount and choices and for a lender, it widens the business.
Navigating the Nuances of Gold Loan Fees
Gold loans offer a versatile financial solution for a variety of needs, from business expansion to emergency expenses. Understanding the intricacies of gold loan fees can help borrowers secure the best possible rates, ensuring affordability and ease in managing repayments.
Pros and Cons of Personal Loans
Personal loans or any other loan involves various basic factors which are immersed in the fine-print of the paperwork offered to the consumer at the time of getting the loan.it is important to understand the conditions offered by banks to the consumers.
