Steps to know about the gold loan locker facilities
Financial institutions across India provide one of the lowest gold loan interest rates and borrower-friendly terms for gold loans. This encourages individuals willing to apply for gold loan at affordable rates and terms. However, before moving forward, individuals need to consider certain factors to obtain the best deals for them.
1. Loan quantum
One of the primary things to consider when choosing a gold loan is the availability of substantial funding against valuable gold items. Moreover, financial institutions extend loan amounts based on two factors. These are the current market rate of gold and LTV ratio mandated by RBI. The former defines the evaluation of pledged gold items based on the weight and purity of gold, and the latter involves the percentage of LTV set by RBI, following which lenders can extend the loan amount. Based on these factors, borrowers can avail themselves of a considerable amount.
2. Repayment schemes
Reputed financial institutions offer flexible gold loan repayment options, and individuals can choose their preferred option based on their affordability. For example, they can pay the overall interest amount at the beginning of the tenor and pay the principal later. Alternatively, they can pay interest amounts monthly or quarterly or choose the traditional EMI payment method.
Besides understanding gold loan details and repayment options, individuals need to know about the locker facilities extended by financial institutions to safely store their gold articles.
3. Locker eligibility
The eligibility for availing of a locker becomes more flexible when an individual is an existing customer of the concerned financial institution.
4. Charges
Locker facilities extended by financial institutions are only available for existing customers. Even for them, it comes as an additional fee in the form of locker charges. The charges can go as high every year if individuals demand larger lockers.
5. Nomination
Individuals need to nominate someone to take care of their assets in the event of their demise. If two or more persons own the locker, then the concerned nominee can still get access to the owner’s assets in the event of demise.
What is a gold loan, and how to avail locker facilities?
Gold loans are secured credit variants where individuals are required to pledge their gold jewellery, ornamnets or coins as collateral. It is similar to other secured financing options where individuals can receive their collateral after completing the repayment.
However, individuals need to submit substantial and pure gold articles to enjoy gold loan benefits such as high loan amounts, affordable rates, etc.
To keep pledged items secured, individuals can avail locker facilities extended by financial institutions. To avail of a gold locker in India, individuals need to fill out an application form, submit KYC documents and sign a locker agreement. Financial institutions will pay gold locker charges in the first year, after which the amount will be imposed on the customer annually.
Pro top: Do not let your gold sit idle—tap into its value with a gold loan that suits your needs. Check your gold loan eligibility today!
Benefits of locker facilities
Here are the benefits of gold bank locker facilities for the customers:
Safety
Lockers offered by financial institutions are undoubtedly safer than keeping them in the house. This is because financial institutions have secured infrastructure with their safe vaults, upgraded electronic surveillance, and entry and exit monitoring. It makes them a preferred option for customers. However, as per RBI guidelines, financial institutions are not liable to compensate for any loss or damage of gold articles.
No restriction of items
With the lockers availed from a financial institution, customers can keep any items inside them. There is no restriction on items in the locker facility. Apart from gold articles, individuals can keep any valuable items of their preference.
No annual locker charges
These lockers from financial institutions are free from locker charges that must be paid annually. This allows customers to save a substantial amount that one had to bear to ensure their pledged gold’s safety.
Thus, individuals can ensure their mortgaged gold’s safety by availing locker facilities from any reputed financial institutions. Alternatively, they can select the best gold loan from leading financiers like Bajaj Finance, who keeps the high-value pledged items in the locker or vaults with optimum security.
