How Gold Loans Work
You pledge your gold ornaments as collateral, and the lender gives you a percentage (LTV) of the market value as a loan.
Key Advantages
- Speed: Disbursal often within hours.
- No Credit Score Check: Since it is secured, CIBIL score is less critical.
- Flexibility: Pay interest only during the tenure and principal at the end (Bullet Repayment).
Documents Required
Usually just KYC documents (ID and Address proof). No income proof is needed for smaller amounts.
Interest Rates
Rates are generally lower than personal loans, starting from 9-10% p.a., depending on the LTV ratio chosen.
Safety of Ornaments
Your gold is stored in secure bank vaults until you repay the loan in full.
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