The festive season in India always brings a sense of transition from one season of life to the other, pushing us to make the much-needed changes which we might have been procrastinating on for a while. The same goes for Dhanteras as well, making it an ideal time to focus on the pre-planned vision, but what if someone does want to go for a personal loan? Then the gold, being a liquid asset, becomes the supporting aspect.
For those wanting to use their gold as collateral and need to make a major purchase this Dhanteras, the guide below helps you understand all you need to know about the gold loan app prior to your application.
Loan Options Flexibility For a Gold Loan
Every borrower has their own cash flow requirements in the festive season, and to cater for that with ease, credible gold loans often offer flexible repayment structures:
- Interest-Only EMIs: You pay only the interest component each month. You pay the principal in full at the end of the loan term. This is ideal if you want to keep your monthly festive outlay very low.
- Bullet Repayments: You don’t pay anything monthly at all. You just clear the entire principal plus accumulated interest in one go at the end of the term.
- Periodic Payment Process: Some credible lenders in the market also allow periodic payments such as bi-monthly, quarterly, half-yearly, or annually.
What About The Budgeting Of It?
Because a gold loan has become easily accessible to all, you just need to plan it properly to make sure it’s a benefit rather than a liability till you repay the borrowed amount.
- Borrow with a purpose on a gold loan app, even if the market value of your gold is more than sufficient to get you a bigger amount. Borrow only what you need for your immediate outlay.
- Knowing the Loan-to-Value (LTV) ratio is crucial since it dictates how much cash you can get while collateralising your gold. The RBI regulates this, and lenders can offer up to 85% of the current market value of your gold as a loan.
- Align your repayment timeline. Festivals are typically associated with year-end bonuses, cash gifts and seasonal business profits. Align your loan tenure with these expected inflows so you can pay it off quickly and keep interest costs to a minimum.
Safety Checks For The Lender You Are Choosing
Before you pick a lender for such a vulnerable financial state, consider the lender you pick to keep your gold as collateral. Below are some safety checks you can run while you are exploring your options online:
- Transparent evaluation: The lender should be able to assess your gold in front of you. A reputable finance provider will use a non-destructive, industry-standard carat meter to assess the gold’s purity without damaging it.
- Vault-grade security: A reputable lender will store your physical gold in a highly secure, 24/7 monitored vault.
- No Hidden Fee Guarantee: Always check the small print. Be on the lookout for hidden costs such as a very high valuation fee or a very high foreclosure fee. Choose a lender that is completely transparent and charges only a minimal processing fee, with no hidden fees.
What Documents You Need To Apply on a Gold Loan App?
Before you start out with your application, this hybrid process does require you to physically submit the gold to the allotted brand, but the application process starts online, and the following documents are what you need to carry with you while applying:
- Personal KYC Verification: Submit digital copies of officially valid identity documents such as your Aadhaar card, PAN card, voter ID, or passport.
- Bank Account Proof: Provide either a cancelled cheque leaf or the front page of your active savings or current account passbook. To ensure seamless and instant funds disbursement, verify that the name listed on your KYC documentation perfectly matches your bank account details.
To Sum Up
Don’t let your finances be a barrier to your Dhanteras celebrations. Pledge your gold with a reputable partner, and you get complete security, no hidden fees and flexible EMI options to suit your festive cash flow. If you want a trustworthy gold loan app, you can refer to a credible name like Bajaj Finance App to fund your festive plans with complete ease of planning.
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