Capitalizing on Assets: The DBS Gold Loan Advantage

Capitalizing on Assets: The DBS Gold Loan Advantage

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DBS is a leading group providing financial services in Asia, with headquarters in Singapore. DBS provides a variety of products and services, one of which is Gold Loan. A borrower can mortgage gold to get cash within minutes with minimal documentation. It also includes high LTV, instant processing of loans, along with no end-user restrictions. The lenders offer flexible repayment modes and tenures, after which the gold is returned by the bank when the loan is repaid in full.

To get a DBS Gold Loan, one must have a decent credit score and a certain predefined monthly income. However, these are not the necessary requirements, as the vital factor to meet eligibility is to keep gold as collateral. Also, the applicant should be an Indian resident between 18 and 75 years old. The same can be availed by self-employed, salaried, business owners, senior citizens, homemakers, etc. The DBS Gold Loan, i.e. considered to be the Best Gold Loan, can be repaid in a tenure ranging from 6, 9 to 12 months.

Process of DBL Gold Loan

Mentioned below is the step-wise procedure to apply for Gold Loan:

Step 1: Look for the available lenders who offer gold loans:

Step 2: Approach the lender that suits you the most, along with the gold jewellery, coins, etc.

Step 3: Submit the gold loan application form along with the necessary identity and address proofs.

Step 4: The lender will weigh the gold and evaluate the same for its purity to determine the loan amount that can be raised.

Step 5: Then, the loan will get sanctioned once the gold is held as collateral.

Step 6: The lender will return the gold back once the loan is repaid in full. However, if the loan is not repaid in full within the specified tenure, the lender obtains all the rights to sell/ auction the gold to recover the amount.

Documentation Required

Mentioned below is the list of documents required to be provided along with the loan application form:

  • A copy of your identity proof document, like PAN, Aadhaar card, Voter’s ID, Driver’s License, etc.
  • A copy of your address proof document, like an Aadhaar card, Voter’s ID, passport, Driver’s License, etc.
  • In case the amount of the loan exceeds a specific amount, the lenders will be required to provide a copy of their PAN card.

Features of DBS Gold Loan

Mentioned below are the key features of DBS Bank Gold Loan:

Competitive Rate of Interest:

To secure the investment risk and take care of the gold pledged, DBS comes with a competitive rate of interest on gold loans compared to unsecured loans.

Minimal Documentation

The documentation requirement is minimal, i.e., only KYC documents, i.e. identity and address proof, are required.

High Loan-to-Value Ratio:

Lenders may provide loans up to 85% of the current market value of gold. The maximum LTV ratio can differ from lender to lender.

Instant Processing of Loan:

The lender bank will weigh the gold to disburse the loan quickly.

No End-Use Restrictions:

There are no restrictions on the intended use of the user on how to use the loan amount.

Benefits of DBS Gold Loan

Mentioned below are the benefits of DBS Gold Loan:

Easy Eligibility:

There are no strict eligibility parameters to meet. One is simply required to be an Indian resident between 18 and 75 years of age.

Zero Prepayment Charges:

The loan can be repaid anytime between its commencement and the date of maturity. No penalty is levied if the borrower opts to close the loan before the stipulated time.

Flexible Terms Repayment:

The borrower can repay the gold loan by selecting the bullet repayment mode, i.e., paying the principal and interest at the end of the loan tenure.

Ability to Reuse Gold:

The lender will return the gold once the loan is repaid. One can pledge the same gold in further need of funds.

How to Use DBS Bank Gold Loan Eligibility Calculator?

Mentioned below are some easy steps on how to use the DBS Bank Gold Loan Eligibility Calculator:

Step 1: First, from the drop-down menu, select the purpose of acquiring the loan from the two options available: agricultural and non-agricultural.

Step 2: If the purpose of obtaining the loan is agricultural, the loan tenure can be chosen between 6, 9, and 12 months. On the other hand, if the purpose of obtaining the loan is non-agricultural, the default loan tenure would be 12 months, which will be auto-selected.

Step 3: Next, choose the gold ornament to be pledged to acquire the loan. This may include bangles, necklaces, earrings, chains, toe rings, pendants, etc.

Step 4: Enter the net weight of the gold that is to be pledged in grams only.

Step 5: Next, from the drop-down menu, choose the carat of the pledged gold from the options 18, 20, 22, and 24-carat gold products.

Step 6: The calculator will compute the maximum loan amount that can be obtained by pledging the gold.

Methods to Repay the DBS Gold Loan?

Mentioned below are the different ways to make DBS Gold Loan repayment:

Alternative 1: The interest amount applicable can be paid in EMIs, and the principal amount can be repaid at the time of loan maturity.

Alternative 2: The principal and interest can both be repaid at the end of the loan’s tenure.

Alternative 3: A regular EMI option can also be chosen to pay the principal and interest amounts.

Alternative 4: The last option is to make a partial repayment of the principal amount to pay the EMI.

Conclusion

In case of urgent need of funds, i.e. at a lower rate of interest, a Gold Loan is a superb alternative. It is a secured form of loan that will allow one to raise funds while preserving the investment that is returned to the borrower when the loan is repaid. Anyone can apply for a gold loan as it comes with a very simple process. Also, it comes with easy eligibility criteria to be met so that the application process becomes easier. The gold held as collateral will be returned once the loan repayment is made in full. In the event of non-payment of the loan within the stipulated time, the lender bank may sell off the gold to offset their losses.

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