Let a gold loan come to your rescue for urgent financial needs
There are situations when we have to borrow money urgently to fulfil pressing needs. In such cases, an option of cashing in on instant liquidity in the form of gold assets is a boon. If you have sufficient gold assets at your disposal, you can always use them as collateral and avail a gold loan. Under this, you agree to keep your gold assets with the bank for a fixed period and once you repay the loan amount along with the interest and charges (if any), your gold assets are returned to you. This is a fairly simple, fast and hassle-free process.
Features and benefits of gold loans
Gold loans at Kotak Mahindra Bank are customized to your specific needs. They come bundled with lucrative benefits, as listed below:
- The term for gold loans ranges from a few months up to 4 years, depending on how you plan to repay it, along with different interest payment options and schemes.
- It is approved almost instantly, within a maximum 4 hours; it works really well when the need for a loan is critical.
- Gold loans generally come with a lower rate of interest than other loans, which makes it easier to pay them back monthly /quarterly / half-yearly.
Interest rates on gold loans
Interest rates on gold loans vary from 8% to 17% p.a., subject to change. This rate is fixed by the bank, depending on the type of loan and tenure, among other factors. It is always better to know the exact fees and charges and interest rate that you are paying on your loan, because it helps you plan your finances better.
How much interest/principal/EMI do you have to pay?
You can use Kotak Mahindra Bank’s gold loan EMI calculator to easily figure out the amount of EMI that you have to pay along with the interest and principal equation. This will largely depend on the amount of your loan and its tenure. It is important to remember that the monthly instalments that you pay tend to reduce with longer repayment terms.
Depending on schemes you are opting for repayment, interest has to be paid monthly/quarterly/half-yearly whereas the principal amount is to be paid at the time of maturity.
Know your eligibility to avail a gold loan
Anyone who is a resident of India and is above 18 years of age can apply for a gold loan. All you need to do is provide your gold assets of 18 karat and above as collateral.
For more information, here is a detailed list of Kotak’s gold loan eligibility criteria.
Documents required for gold loans
Along with fulfilling eligibility criteria, minimal documentation is required for approval. Basic gold loan documentation prerequisites are a valid ID proof, address proof, and 2 latest passport-sized coloured photos.
Here is a detailed list of gold loan documents needed.
Gold loan is a fast and easy way to get some cash in times of need. Always keep this option in mind if you are in need of instant money.