The Indian financial sector is growing very fast and people believe that they all want to take financial help by taking secured loans instead of unsecured loans. Generally, loans are subject to income eligibility after certain calculation of all kinds of parameters like borrowers current stability in the current city, family background and positive reference checks from the third party verification of residential and office where the customer is currently staying or working as an employee in any of organization which much be listed in the company list of the particular bank or the financial institutions anywhere in India. The interest rate is the most important point which is always pointed out by the customers; interest rates may be varied between 9% to 19 % by lenders as per their prime lending rates for particular loans like mortgage loan and housing loans, or any other secured financial products. Loan against gold is one another secured loan which is one of the most trusted loan products in India, given by all banks and other private financial institutions. The most common program available is, all the banks and NBFC are without income proof gold loan.
BANK AND NBFC
Banks are very prompt and aggressive to deliver these products into secure and Loan against gold and the mode of work for relatively uncommon smaller or minimum required amounts that you would like to pay off sooner as much you can within a short timeframe. Muthoot finance group and Manappuram Gold finance are the pioneers of the gold loan back ground for long years. Gold loan product inspired from jewellers actually, they were lending the cash loan against the gold ornament and they charged 3% to 5% as per the customer basis and they do not even provide the pledge receipt against the pledge ornament to the borrowers.
LOWEST INTEREST RATES ON LOAN AGAINST GOLD
To avoid the funding from these jewelers, RBI and government of India take lots of steps like without license no one is allowed to lend any cash funds to any of customers in India means money laundering is a strictly ward in India. Another step for going forward is launching of gold loans by different banks and NBFC like HDFC Bank Gold Loan, SBI, Capital First, Karvy Finance, India Info line, made this financial market boost up in last ten years. Banks are lending on approx 13% to 16% and at the same time other NBFC companies are funding 14% to 22% on a yearly basis and all the rates are subject to change.
INTEREST RATE MUST BE CALCULATED ON DAILY BASIS
If you have an urgent requirement of cash amount and want to take a loan against gold ornament than you should also be aware about the repayment of your monthly interest rates charged by the lender, and ask the lender at which basis they are calculating interest rates, means whether monthly basis or daily basis. Currently the best way to calculate interest is daily basis. As of now most of the private & public banks are using monthly calculation on loans, but some of NBFC like Karvy Finance are offering the best interest rate on a daily basis.