How to choose the best bank for an easy gold loan process

The past two years have seen a major upheaval in the employment space, with the pandemic throwing companies and brands off course. The silver lining in all this is the fact that it is short term and we can find a solution around it. However, this has created the need for short-term cash requirements. If you’re looking for short term cash options, a gold loan is something you should consider. 

Gold loans are the loans taken from banks with your personal gold jewellery or coins* (*as approved by RBI) as collateral. The loan amount provided is a percentage of the value of gold pledged and is extremely effective in the short run to give you some liquidity. The purpose of this loan is usually agricultural or small business-related, but it can also be used for personal and everyday expenses.

Before you opt for a gold loan, here are some things you need to know:

  1. Banks don’t consider gold bars for gold loans. Only gold ornaments and coins qualify for a quick gold loan.
  2. The gold being pledged needs to be a minimum of 18 karats to be considered.
  3. The loan provided is typically up to 80% of the value of gold being pledged and it depends on the market value of the ornaments and their quality.
  4. Gold loans is a better  short term option to give you some immediate cash in hand and settle your day-to-day financial difficulties.

Karnataka Bank is renowned in the financial industry for providing easy gold loan options and has a personalised understanding of your needs depending on your financial background. Karnataka Bank provides you with  a range of customisable financial products and services that are best  in the industry. Backed by the optimal combination of technology and people skills, the bank strives to forge long-term relationships with each of its customers.

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Easy gold loan processes with Karnataka Bank

The loan is provided for a period of 6 to 12 months, making it a viable short term option. When you’re looking for a good bank to apply for a gold loan, you should look at the following criteria.

  •  Interest rates

Banks, especially compared to NBFCs, offer gold loans at lower interest rates. Karnataka Bank provides competitive interest rates in the industry. Having a lower interest rate effectively brings down the overall payment.

  • Repayment options

The modes of repaying the gold loan must be simple and easy to process. Karnataka bank provides many different options to choose from, in order to  ensure effective repayment. 

Repayment options:

  • Term repayment, where a person pays  in portions throughout the period of your loan.
  • Bullet repayment, where a person pays the lump sum amount at the period of maturity.
  • Overdraft repayment, where the gold loan amount will be credited for as and when use and repayment can be arranged according to that.

Some service charges will be levied for the entire process.

  • Paperwork

Karnataka Bank is known for making processes simpler and more accessible for every individual looking for a quick gold loan. The processing time is very low and  quick sanctioning of your gold loan is ensured.

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  • Customer focus

Whichever bank one might go to, the way bank representatives focus on understanding the customer‘s needs plays a major role in a customer’s decision making. It is necessary for bank representatives to have clear understanding of a person’s needs and their financial background. Karnataka Bank understands that every customer’s needs are unique and require sound understanding while processing the loans. With their customer-centric approach based on a person’s financial status, they stand out in the market. 

For safe, transparent and trustworthy financial services, especially when it comes to gold loans, pick a provider that ensures the careful handling of gold, documents and has a simple and easy repayment process. This way, the experience can be smooth and creates a long-lasting relationship with the bank. Karnataka Bank provides all of these and more, because they value every customer. To learn more about their gold loan process, contact nearest Karanataka Bank branch.