Without a doubt, gold is one of the most precious metals out there. Despite the changing prices of various commodities, alongside the effects of inflation, the value of gold remains consistently high. Whether you’re a businessman or a salaried worker, buying gold for personal use — or as an investment — is always a good idea.
For instance, let’s say that you have an urgent need for cash, but you’d rather not take out a bank loan since you’re on a budget. One of the things you can consider is to apply for a gold loan. In this article, we will talk all about gold loans: features, eligibility criteria, requirements, and places where you can get a gold loan here in Abu Dhabi.
Guide to Getting a Gold Loan in Abu Dhabi
There are times when you need extra cash unexpectedly… such as medical emergencies, hospital expenses, and so on. During these situations, a gold loan could be just what you need. In the UAE, there are quite a number of banks offering gold loans at low interest rates… But what exactly is a gold loan?
What is a Gold Loan?
As the name says, a gold loan is a “secured” type of loan where a person goes to a lender (e.g. bank, lending company) and applies for a loan against his/her gold jewellery. Based on the gold’s value, the loan amount is computed and released to the borrower.
Basically, in a gold loan, your gold jewellery serves as “security.” You can get it back after paying the lender the agreed amount in monthly installments. The gold loan is one of the quickest ways to get an instant loan.
Where to Get a Gold Loan
There are many banks, lending companies, and other financial institutions in the UAE where you can get a gold loan. Notably, the interest rate of a gold loan is lower than other types of loans.
As mentioned earlier, the loan amount is based on the value of gold offered by the borrower. In turn, the monthly installment and repayment period is based on the loan amount. Minimal documentation is required… only 24 hours is most cases!
In addition, keep in mind that the loan amount would depend on the rate of gold in the UAE. The higher the rate of gold during the time of your application, the higher you can expect the loan amount to be. Please note that since the price of gold may change daily, the amount of gold loan may also change from day to day.
In any case, it would be a good idea to keep track of the gold rate in the UAE regularly. This way, when the time comes and you find yourself needing urgent cash, you can decide whether or not it would be a good time to apply for a gold loan.
Who are eligible for a gold loan? This may vary among different financial institutions, although here are some general criteria. A gold loan applicant must:
- Be at least 18 years old;
- Be mortgaged with the financial institution if he/she owns gold;
- Have a regular incomes (optional); and
- Have a savings or current account with the financial institution (optional).
As for the requirements, here are the necessary documents that applicants should prepare:
- Proof of identity (e.g. government ID card, driving license, passport, etc.);
- 2 Passport-sized photographs;
- Proof of income (e.g. latest salary slips, income tax returns, etc.);
- Proof of address (e.g. bank statement, electricity bill, mobile phone bill, current house lease agreement, etc.); and
- Filled up and signed gold loan application form.
Benefits of a Gold Loan
What are the advantages of getting a gold loan? Here are some benefits to take note of:
- Minimal documentation required;
- Flexible repayment periods;
- Fast disbursement of loans; and
- Lower interest rates (compared to other types of loans).
Gold Loan by Finance House
Other than banks, there are licensed financial institutions that also offer various loans, including gold loans. One of these establishments is Finance House.
Finance House is a public, joint stock company incorporated in Abu Dhabi. Established on March 13, 2004, the company began operating on July 18th of the same year. With a head office in Abu Dhabi, Finance House has branches in Dubai and Sharjah, as well. It is engaged in consumer finance, commercial finance, and proprietary investing, among others.
Finance House’s Gold Loan offers financing starting from AED 5,000 up to as much as AED 150,000. The monthly interest rate is 1.33 percent, and minimal documentation is required. Provided that you have submitted all the necessary requirements, you can expect your loan to be issued within just one day!
Moreover, Finance House has an online “loan calculator” where you can estimate your loan amount, monthly installment, and repayment period. All you have to do is enter your piece’s gold karat and gold weight (in grams). Then, select a payment plan that fits your budget and preferences. That’s it!
As for eligibility, you need to be between 25 to 70 years old to qualify for Finance House’s Gold Loan. You should also be a valid resident of the UAE. Meanwhile, the required documents include: a valid passport, a valid visa, and a valid Emirates ID.
To know more about the company’s Gold Loan, just go to the nearest Finance House branch. You can also visit the company’s official website.
Video: Finance House’s Gold Loan
For more details about Finance House’s Gold Loan, check out this short video featured by the company’s YouTube channel:
Getting a gold loan is one of the fastest and easiest ways to obtain urgent cash in the UAE. If you need cash immediately, and you happen to have gold jewellery, gold bars, or gold ornaments — consider applying for this type of loan. Simply head to the nearest bank or financial institution to inquire about the features, terms, and conditions of their gold loans.
Indeed, having gold definitely comes in handy these days, be it for personal use, or for investment purposes. If you are interested in purchasing gold for your collection, here’s a list of the best websites where you can buy gold from Abu Dhabi online.