Parting with your gold is a difficult decision to take, especially with the kind of sentimental value that is attached to these ornaments and heirlooms. However, emergencies call for prompt action, and one of the ways to effectively handle a financial crisis is to get a gold loan. Even after taking the decision, you are met with choices and options offered by various lenders, which may confuse you.
How does one apply for it? Is it safe to apply for a gold loan online? Why not opt for an offline gold loan instead? You may have a hundred questions. Let us solve your queries by looking at online and offline gold loans in greater detail. Compare the two and take an informed decision by opting for the choice which suits you the best.
Offline application
The traditional offline way of applying for a gold loan includes visiting the branch office of your lender. This method requires you to submit all the documents and gold physically. The verification process and disbursement of loans taken via this route can take several days, even weeks.
Online application
Apply for a gold loan with minimal hassle and the convenience of an online application process. Under this, you can fill out the application form digitally by visiting the official website of the lender. This reduces the mess of getting extra photocopies of your documents. The processing is comparatively faster and can be done anywhere and at any time. You can also access other online tools like a gold loan EMI calculator to better plan your finances as per the amount you wish to borrow.
Online vs offline gold loan: What to choose
Here is a distinction between the two to help you make the decision.
- Selecting a lender
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When looking to apply for a gold loan, it is crucial to look for various lenders and the offers they provide. Comparing lenders becomes a tedious and exhaustive process in case of offline gold loans, as you would have to visit different branches of various loan providers.
On the other hand, applying online can help you get all the required information regarding your loan at your fingertips. This makes it easier for you to compare and select a lender and get the best possible loan. Additionally, you can also use the quotations and offers to get a gold loan on more favourable terms.
- Documentation process
When applying offline, you might be asked to carry all your original documents along with their photocopies. This can be a bit of a hassle, especially when waiting in long queues. In case you miss a document, you might have to reschedule your appointment, thus prolonging the process.
Apply for a gold loan online to avoid all documentation hassles. Simply scan your documents and upload them, along with your application on a lender’s official website to get the verification process started. This makes the process more seamless and also saves a lot of time.
In an offline process, your verification and approval process can take time. You will be asked to submit your documents at various , and will be checked manually. This can be time-consuming and tedious. The hassle can be avoided completely with an online gold loan application. This route is much faster as it is completely digitised.
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- Safety of your gold
Whether applying offline or online, you will be asked to carry your ornaments to the bank yourself. With the recent surge in theft and other crimes, this can be a risky option. In case such an incident occurs, the responsibility lies with you and not the bank.
While such threats linger at all times, there are provisions that can help safely keep your gold as a mortgage. If you apply online, some lenders facilitate the transport of your gold from your home to the bank. This assures you of the security of your precious ornaments. Some lenders also provide a doorstep service where the gold offered as collateral is checked and assessed at the borrower’s home itself. With this, you can be sure of not being cheated in the process and get the right value for your gold from the comfort of your home.
- Additional convenience
In case of an offline application process, you can receive in-person advice from bankers and loan providers to get better loan conditions. You can also ensure in person that you are not being cheated throughout the process and that the proceedings are as they should be. Meanwhile, an online gold loan offers you the convenience to skip long queues. When you get a loan online, you can also gain access to other tools like the online gold loan EMI calculator. This can help you calculate and plan your finances ahead of taking the loan. It allows you to understand the impact that a gold loan can have on your monthly budget.
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Now that you have understood the workings of online and offline gold loan applications, choose a method that fits your requirements the most and get a loan on your terms.
