AFFORDABLE, GOLD LOANS
WHAT IS GOLD LOAN
It is crucial that money lenders adopt cutting-edge technologies if they want to effectively ride this growth wave. Since we have a wealth of knowledge and experience in priceless loan management software. We provide unrivalled core banking features-rich gold loan management software for money lenders with an optional online gold loan management software to our customers or clients.
WHAT IS GOLD LOAN MANAGEMENT SOFTWARE ?
Software for managing gold loans makes it possible to use gold as collateral for loans. The gold loan software also provides several sorts of reports that are important for gold loan companies utilising the programme. It is very user-friendly and offers a number of helpful features that help to retain records of gold, payments tracking, loan foreclosure, loan instalment plans, etc..
The solutions handle all different kinds of interest rates—fixed, adjustable, etc.—as well as time periods and standards for counting the days in a period. The complete lending life cycle is automated by these lending systems, from customer acquisition to recovery
Our customers benefit from a single point of contact for processing loan applications, approval and disbursement, loan ledger, customer information, kyc/ckyc, gold details, interest schedule, monitoring, collection, reporting, closure, renewal, reminders and notices, auction procedure, risk analysis, and more thanks to the way the gold loan management software for money lenders is built.
GOLD LOAN MANAGEMENT SYSTEM
Customers can apply for gold loans and research their features, terms, and other details on a single platform thanks to a gold loan management system. Lenders provide clients with a wonderful digital experience by regularly updating their systems.
Individuals can easily reschedule loans thanks to a gold loan management system with an integrated accounting management feature. After a customer submits a rescheduling request, it updates the calculation pertaining to the loan amount. This also holds true for partial and early repayment of a debt secured by gold.
HOW DOES GOLD LOAN MANAGEMENT SYSTEM WORKS ?
Simply defined, the Gold Loan Management System is a platform that is coupled with a Gold Loan Management programme that manages gold loans.
- processing loan applications,
- approval and payment of the loan,
- loan register,
- chart of amortisation,
- customer data and KYC information
- gold accents,
- interest timeline
- charges
- reminders and extensions
This benefits the lenders of gold jewellery loans in a number of ways related to the gold loans, including monitoring, collection, reporting, closure, auction procedure, risk analysis, and more.
FEATURES OF GOLD LOAN MANAGEMENT SYSTEM
As was already noted, a lender’s Gold Loan Management System affects how well customers are able to interact with them online. The secret to attracting and keeping customers is accurate and trustworthy information. When a customer applies for a gold loan nowadays, they want a personalised response from the lender.
So, the following are some essential qualities to search for in a modern Gold Loan Management System (GLMS):
Record Keeping for Clients
The development of superior gold jewellery loan products and services depends on customer information. All customer data is accurately stored in one location by customer record management. Information about the customer, such as credit history, CIBIL score, KYC and contact details, information about the gold that was pledged, information about previous and existing loans, payment history, EMI and interest schedules, etc. It enables the lender to swiftly access consumer information and take appropriate action.
Process for Automated Loans
The GLMS assists in fully automating the loan application and disbursal processes. As a result, the turnaround time (TAT) for clients to access funds more quickly and easily is decreased. Automation aids the lender in minimising human mistake throughout the process and getting rid of monotonous jobs like client profiling and credit analysis.
Automated Payment, Tracking, Interest, and Default Calculation
Because of this, the lender is able to keep track of loan repayments, apply interest rates in the event of flexible gold loan rates, etc. If a consumer has missed payments, it also sends notifications so that corrective action can be made. It aids in decreasing manual labour and boosting productivity.
User-Client Interface
The GLMS’s website or mobile app should offer a clear user experience. By logging in to your profile, you may access data about your gold loan’s features, the time left on the loan’s term, your repayment history, transactions, and loan extensions and renewals, among other things. This significantly lessens the demand for a team of customer care executives. Additionally, you can purchase digital gold using this method.
Monitoring, Analysis, Reporting, and Evaluation
The gold loan management system assists the lender in comprehensively tracking, assessing, and analysing its gold loans and gold loan clientele. The lender can plan and take the appropriate steps in the event of defaults and/or NPAs based on the reports that are generated.
Identifying, Reducing, and Protecting Fraud
Growing digitization brings with it a concern of online fraud. By conducting thorough and ongoing monitoring, a Gold Loan Management System with automation and artificial intelligence aids in fraud detection and eradication. Your valuable data, money, and systems may be saved and protected with the help of the lender’s prompt involvement.
BENEFITS
BENEFITS OF THE GOLD LOAN MANAGEMENT SYSTEM
The followings are the benefits of the gold loan system :
A reduced interest rate
Due to the fact that they are secured loans, gold loans typically have lower interest rates than other financing options like personal loans, mortgages, or other secured loans.
Rapid processing
Gold loans have lax qualifying requirements and little documentation because they are guaranteed by actual gold. Lenders can now process loans more quickly as a result.
No processing charge
The fact that there are no processing fees associated with gold loans is one of its best qualities. This makes these loans the most advantageous.
Absence of foreclosure fees
In contrast to other lending options, there are no fees for foreclosure or penalties for paying off a loan early.
FAQs
Ans. The gold loan software price vary from company to company. Generally it is ranges between 15000 to 50000.
Ans. Gold is fully secured loans and the repayment choices for gold loans are more flexible compared to personal loans
Ans. If we talk about the interest rate between these two loan then home loan is better because Home loan rates are lower than the interest rate on gold loans as a home loan has longer tenure and offers a higher loan amount. But if you want small amount for short tenure than gold is better than home loan.
Ans. Yes, there will be charges for transferring the balance of the gold loan. For instance, you must pay processing fees to the new lender as well as foreclosure charges to your former bank.
Ans. Passport (Not expired), Driving license (Not expired), Voters’ ID Card, Aadhaar Card issued by UIDAI, PAN (Permanent Account Number) Card (along with any of above mentioned documents) or Form 60, One Passport Size Photograph, Agri Allied Occupation Documentation( in case of bullet repayment for agriculture customers)
All these document are mandatory.
Ans. The gold loan management software price vary from company to company. Generally it is ranges between 15000 to 50000.
Ans. In summary, getting a gold loan has several benefits and can save you from a lot of trouble. The best part about gold loans is how quickly they are disbursed, how little paperwork is required, and how simple the paperwork is compared to other loan options. However, it’s always advised to do your homework before choosing a gold loan.
Ans. Applicants for a gold loan must be older than 18 and must have gold that the bank is willing to mortgage.
Ans. Each lender sets their own interest rate for your gold loan. Enter your information on our page for gold loan eligibility to explore offers for gold loans from different banks and private organisations.
Ans. A gold loan may be partially returned at any time. Your gold will, however, not be returned until the whole loan amount has been paid back.
Ans. Banks store your gold with great care and keep it secure until the loan amount is paid back. They are aware of the sentimental significance associated with gold ornaments and take care of them while the gold is still in their possession.
Ans. An annual fee of 1% to 6% is typically assessed by banks. In addition to the interest rate you would be paying to service your loan, this is also required.
Ans. You can choose any preferred method of money transmission to repay the loan, including cash, check, demand draught, or online fund transfers.
Ans. Charges for loan foreclosure are applicable and range from 0% to 3% of the outstanding balance of your gold loan.
Ans. You must pay a little processing fee for your gold loan. While processing fees vary from bank to bank, they typically do not go beyond 2% of the loan amount. You are required to pay a gold validation fee in addition to the processing fee, which the bank will incur.
Ans. A gold loan can be repaid in as little as one day or as many as 48 partial payments, depending on your lender.
Ans. The approval procedure for a gold loan happens quite quickly. If your application satisfies all the requirements, the loan amount will be disbursed in just one hour.
Ans. The maximum loan amount varies depending on the lender. Depending on the eligibility requirements of a specific bank or organisation, it might range from Rs. 1,500 to Rs. 1 crore.
Ans. No, as per RBI guideline, gold loan can be given on gold jewellery only.
Ans. All gold assets are eligible for loan promise. The value of the loan will depend on the gold’s purity. Coins and gold bars, for instance, are more valuable because of their higher purity.
Ans. If payments are consistently late, the ornaments may be sold at auction, but only after giving the borrower adequate notice. In addition to sending regular SMS reminders to our consumers to inform them of the overdue in the account, Manappuram sends a reminder to its past-due accounts. Prior to the sale, we also issue auction notification. We once again stress that the best approach to prevent such occurrences is to (1) make periodic monthly payments of interest due and (2) reset your account on or before the due date.
Ans. Missing payments on your gold loan will lower your credit score, making it harder for you to get loans in the future and increasing the likelihood that your lender will take legal action against you. These legal procedures could involve prosecution for a crime, additional fees and fines, the seizure and sale of your gold, and more. You should always pay back a loan on time, and if for some reason you are unable to do so, you should let your lender know and seek for assistance.
Ans. The amount of the gold loan is determined by the purity, weight, and market price of the metal. Then, the rate of interest is determined based on the loan amount, loan term, relationship with the lender, and loan to value ratio, among other variables.
Ans. The borrower must visit the bank with the necessary documentation and the loan agreement when the loan term is about to expire. Based on current market pricing, the bank assesses the gold that is kept in the safe. The borrower is then required to complete a renewal form and pay a small charge. From one bank to another, this cost varies. Next, the loan is extended.
Ans. The bank lender designates a loan as a non-performing asset when the borrower persistently defaults on it. A lender will typically overlook one or two missed payments on a loan, but if the pattern persists after three months, it is flagged as an NPA, which prevents the borrower from receiving further credit.