How to Choose the Best Lender for a Loan Against Gold?

Are you looking for a gold loan, but wondering how to choose the best lender? Here’s all you need to know.

By Gargi Garg May 25 2023 12:53PM 1053 Read

Since time immemorial, gold, the glistening and shiny yellow metal, has been one of the most valuable assets. Not only does it give you some of the most lavish ornaments for beautification but it also acts as a strong financial backup. Loan against gold is quite popular and if you have sufficient gold, you may get a quick loan to feed your financial needs.

By fulfilling simple eligibility criteria, you can easily avail of a gold loan. All you need to look for is the best gold loan institution. Now, the quintessential question arises, that is, how to find the best company for loan against gold in Delhi or in any other city. There are some basic tips that you need to keep in mind when looking for a gold loan company that best suits your needs. Here are a few tips to help you find the best lender company:

  • A Quick Loan Disbursal Need for a loan can occur anytime and if you are seeking a quick loan, try to shortlist gold loan companies that disburse loans on an immediate basis. Having the loan amount disbursed quickly in your account means you have quick access to the required amount. Since gold acts as collateral, it is easier for companies to quickly disburse gold loans.
    Generally, companies with automated loan disbursal systems are capable of providing instant loans to their customers. Some lenders may process your loan within an hour or a day, depending on your application and the terms of the company. Once you are done with the repayment, you get back your gold.
  • Customisation at Your PreferenceThis is one of the factors you must look for when it comes to borrowing a gold loan. By customisation in gold loan, it means, you may be able to avail certain features as per your preference. A reminder for interest payment is one such customisation option.
    Further, it depends on the company what other features and benefits they offer. With added preferences, it becomes quite helpful for the customers to fulfil their financial needs and also improves customer-company relationships.
  • Loan-to-Value Ratio When picking a lender one of the most important things to see is the Loan-to-Value, also called the LTV. It is the percentage of the value of the gold that the lender is willing to offer you in exchange for the collateral. Very recently in March 2023, the RBI increased the LTV cap to 90% from 75%. Try going for a lender that offers you the highest percentage.
  • Centralised Procedure A centralised procedure simply means a system where the entire loan disbursal process takes place online and via a centralised database system. All of this helps in a secure and organised system where all the details of the borrower are easily available.
    Customer details like CIBIL score, loan repayment history, KYC and personal information are easily available under a centralised system. Such a process ensures that both disbursal and repayment of loan against Gold in Delhi are done on time.
  • An Online System Nowadays, technological advancement has made the financial system more transparent and quick than ever before. Earlier, for tracking your loan, you had to visit the office. However, now, with the help of the online system, tracking the loan, repayments, applications for loans, etc., has all become very simple. It is quite possible for the best gold loan company to have an online system.
    Simply by logging in to your account, you can get all the details of your loan account including the progress of the loan application. Most companies now provide the option for the online loan application process, thus, saving your time and effort. Mobile applications also let you have a quick insight into all the details within a few taps.
  • Fraud Protection One of the very obvious concerns of customers is the protection of their data against possible fraud. The fact that fraud cases are also growing in numbers with technological advancements has also raised the concerns of both companies and customers.
    With the digitisation of the processes, the fraudulent activities are expected to be contained to a great degree. Hence, you must shortlist gold loan companies based on their system, whether it is digital or still manual.
  • Rescheduling of LoanAfter applying for a gold loan, you may find out that you need to reschedule the date of your gold loan disbursal. In such a case, you will have to apply for rescheduling of your gold loan. It is only possible if your gold loan company offers you this functionality.
    Since you do not know what the future holds, you must look out for this option in your gold loan company. The company will automatically calculate the loan amount, its part and prepayments, and the interest rates as per the new schedule.
  • Market Reviews Once you are done selecting the best gold loan company, do not forget to check for customer reviews. The reputation of the company among its existing customers gives you the ground reality of the particular company. Also, check out the previous history of the company to know more about its past performance.

Gold gives you financial power in times of need. Be it an emergency or some future financial planning, gold may help you with instant loans to achieve your financial goal. While there are hundreds of options available in the market, you need to cherry-pick the best one for yourself.

Keeping in mind the above points can help you lay your hands on the right one. Make sure you make a timely repayment in order to maintain a good CIBIL score and repayment history.

One of the most popular options available in the market today is ONE Muthoot gold loan. Make sure you consider the same when looking for the easiest way to get a gold loan.

Gargi Garg
Gargi Garg View More Posts

With having a passion for writing, creativity and dance, Gargi is a software developer who works on developing iOS applications. Also, she is also dipping her hands in immersive technologies like AR, VR. Hwr writing is quite versatile at the moment as she is exploring different niches to identify her expertise.

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