Tuesday, September 13, 2011

Reliance Gold Loan Details

Reliance Consumer Finance, a subsidiary of Reliance has come out with gold loans for retail customers. This marks as a Reliance entry to the lucrative gold loan market and paves a challenge to existing players like Mannapuram and Muthoot. Reliance Gold Loan gives an option to customer to avail up to Rs 1 crore loan against gold jewellery, gold coins, gold bars or even gold biscuits.



Features:
  • Loan up to 90% of gold value 
  • Fast approval and sanction of money 
  • Very less documentation 
  • EMI option available for repayment 
  • Gold should have a carat range of 18 to 24
  • Interest rate for the loan depends on tenure and gold quality 
Eligibility:
  • Salaried individuals between the age group of 21 and 60 years
  • Self employed between the age group of 21 and 75 years
  • Housewives can also avail these gold loans
Documents Required:
  • Loan application form along with passport size photograph of the applicant
  • Proof of Identity: PAN Card, Passport, Voters Id (Any one)
  • Proof of Signature: PAN Card, Passport, Driving Licence, Bankers Verification, Govt ID card, Photo Credit/Debit Card with signature, Bankers verification (Any one)
  • Proof of Address: Ration Card, Sale agreement, Electricity Bill, Passport, Municipal/Property Tax receipts, Driving Licence, Passport, Leave and License agreement if staying on rent (Any one)
One can avail a minimum loan of Rs 50,000 and a maximum of Rs 1 crore. The minimum tenure is 6 months and maximum is 36 months if opted via EMI option.

Opinion:
While gold loan is an easy way to get quick money on hand, one should be very careful about this loan as there can be heavy charges in case of default. It helps to get cash on an emergency basis as documentation is minimal and eligibility is relaxed but the interest rates are higher than home loan or bank loans. Gold is on an uptick so many companies are expanding by offering NCDs like Muthoot and Mannapuram. However, many feel that gold is a bubble and the prices will fall sharply on the downside. Don't know when and if that will happen but gold may just turn out to be India's subprime loan crisis.


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