The interest rate on the gold loan varies from one lender to another. The interest rates on gold loans, which are obtained by pledging gold, are between 7.35 percent and 29 percent p.a., which are considerably lower than those on other types of loans. India’s banks and other financial institutions provide gold loans with loan amounts ranging from 1500 to 1.5 crore rupees.
In order to meet short-term needs like funding a child’s education, organising a wedding, attending to a medical emergency, etc. Gold loans are typically taken out for shorter terms.
Factors Affecting Interest Rates on Gold Loans
The market’s gold price
If the market price of gold is high, the value of the gold jewellery that you are pledging will likewise be high. As a result of the low risk involved and the fact that the lender may quickly recoup the unpaid balance by selling or auctioning the gold jewellery, lenders will provide you with a cheaper interest rate in such circumstances.
When the rate of inflation is high, the value of money depreciates, and individuals are more likely to collect gold. When inflationary conditions last for a longer time, gold serves as a hedge against them. As a result, gold prices rise. If you want to get a gold loan at this time, lenders might offer you a cheaper interest rate.
The bank relationship
Most lenders only give gold loans to their current clients, though occasionally people without a banking background can still apply. Existing bank/lending institution clients, however, are frequently in a better position to haggle for a lower interest rate.
A wide variety of gold loan programmes are available from Ruptok, an online lender, with interest rates starting at 0.49 percent per month. Due to the doorstep service and quick loan disbursal, gold loans are now more practical. Ruptok has also partnered with reputable gold loan providers like CSB and Fincare to offer a variety of gold loan programmes that are tailored to each person’s unique needs.
Features of Ruptok Gold Loan
The advantages and special characteristics of Ruptok Gold Loan are listed below. –
Quick Disbursal: The loan amount is immediately disbursed. In 30 minutes, you can receive guaranteed doorstep delivery.
Cheap Interest Rates: Starting at 0.49 percent per month, Ruptok offers low-interest rates on gold loans.
Only KYC documents must be presented as the only necessary documentation.
Security: Gold is kept in bank vaults close to you.
Flexible Repayment Choices: The business offers a variety of flexible repayment options. You may pay interest, close a deal, or make a partial payment.
Free, full-coverage door-to-door insurance is available.
Advantages of online gold loans with Ruptok
Ruptok Online gold loans have incomparable advantages. You must register as a borrower and pledge your gold jewellery in order to obtain a gold loan. The fact that the entire loan application and approval process happens online is the best aspect of an online gold loan. Hence, the location of the borrower is not important. Usually, the lender sends a loan officer to the borrower within half an hour of accepting the loan request, who confirms the gold, and delivers a quote. The lender then transfers the money directly to the borrower’s bank account after a successful verification and subsequent approval.