A Simplified Guide to Applying For A Gold Loan in the UAE

Gold Loan in the UAE

Gold is one of the most preferred forms of investment in all countries, especially in the UAE. While its charm and prestige are enough to draw attention, rich liquidity and inflation-beating are its major selling points. In addition to this, it is also a means to apply for a quick loan as it acts as a corpus fund in case of an emergency. Gold jewellery can be easily used to raise some urgent cash. Today we will talk about how you can use your gold jewellery to apply for a gold loan in UAE. Here you go!

Gold is a luxury asset that plays a great role in an investment portfolio. It has always been a perfect backup plan that provides competitive returns, unlike other major financial assets. Serving as a shield against inflation and currency risk, gold helps in raising loans during emergencies as well. Given the fact, a gold loan in UAE is majorly used as a convenient alternative to help raise some urgent cash during emergencies like temporary cash shortages.

Dubai, the city of gold is highly acknowledged as one of the largest sellers of gold products. People from all over the world visit Dubai to shop for gold. The gold and metal industry in the UAE is one of the revenue-generating industries of the country other than oil and tourism. According to a research study, Emirates are found to sell gold more than other nations and draw tourists from different parts of the world who are looking for exquisite ornaments.

Talking about the gold industry in the UAE, it does not just benefit the government but also plays a role in supporting financial viability among Emiratis. It does not just help in generating revenue, but also offers job opportunities for Emiratis as well as emigrants.

Gold is one of the most precious and everlasting metals that never loses its value like several other commodities. It has turned up as a powerful tool to apply for a prompt loan in the nation. 

How to Obtain a Loan with Gold in the UAE?

Loan with Gold

Most people often get stuck in situations where they need instant financial assistance and could not find ways to arrange finances. But gold proves to be an ideal solution in such circumstances, as it acts as a means to apply for a quick loan. All you need to do is visit the bank with the gold and apply for an instant loan against your gold jewellery.

You can easily get a gold loan from recognized financial institutions such as banks with minimal documentation. A low gold loan interest rate is applicable for a gold loan in UAE as compared to other loan types in the nation.  The repayment tenure varies upon the loan amount. Gold loans are considered as a form of secured credit by banks and financial institutions, as they disburse the loan against the gold jewellery provided as security by the debtor. The loan helps people to attain easy and hassle-free credit during times of emergencies. Minimal documentation is required for gold loans, and it just takes 24 hours for their approval. A gold loan is one of the fastest forms of attainable credit in the UAE. 

Benefits to Obtain a Gold Loan

If you are planning to apply for a gold loan in the UAE, you should know that the loan amount depends on the gold rate. The higher the rate of gold, the higher the attainable loan amount. It is because the net worth of the metal depends on the gold rate in UAE. It further allows the bank to disburse the loan amount equal to the worth of gold that has been provided as security. The gold price keeps fluctuating within hours. Thus, all transactions related to this precious metal are made based on the current gold rate in the UAE. In case there is an urgent need for a loan, one needs to open a locker for gold in a bank and reach out to the bank for further processing of the gold loan. Major benefits of attaining a loan against gold include minimal documentation, fast disbursement of the loan and flexible repayment tenure. Not just that, you can also take advantage of the low-interest rates as compared to several other loan types available in the UAE. 

How to Buy or Sell Gold in the UAE?

Buy or Sell Gold in the UAE

Most people keep coming up with questions in the UAE like how they can get maximum benefit while buying or selling gold. The first and foremost thing in the process of buying or selling gold is to keep an eye on the gold rate in the UAE. The best way to extract maximum benefit out of gold is to buy at the lowest rate and sell at the highest. However, remember that there are fewer chances of the gold rate falling in the UAE, and it usually keeps escalating. 

The simple and best way is to buy gold when its rate in the UAE is the lowest and later sell it when it is the highest. However, we would recommend you to make the most of the gold you own and not to sell it. You should always consider selling gold when the gold rate is the highest and can benefit you the best. In addition to this, gold not just acts as a means of financial security, but keeping gold at home is also considered as a carrier of good luck and prosperity. 

Summing It Up

You must have learned by now that a gold loan is the fastest and easiest way of obtaining credit in the UAE. It is a user-friendly means to raise some urgent cash in Dubai and that too with minimal documentation required. There are low rates of interest and easy repayment tenure in the gold loans. You can conveniently raise some urgent cash during emergencies like temporary cash shortages with the help of your gold collection.

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FAQs (Frequently Asked Questions)

Can we get a gold loan in the UAE?

Yes, you can easily get a gold loan in the UAE. There is a need for minimal documentation to apply for a gold loan in the nation. Also, it gets approved within 24 hours. It is the fastest form of attainable credit among all loan types in the UAE.

How can I get a gold loan in the UAE?

Applying for a gold loan is quite easy in the UAE. You can simply open up a locker for gold in a bank and reach out to the bank for further processing.

Can we get a gold loan in Dubai?

Yes, you can easily get a gold loan in Dubai. A new scheme has been launched by a subsidiary of Emirates NBD, the best and the largest bank (by assets) in Dubai and the UAE. The scheme allows you to borrow up to 80% of the gold value you deposit.

What is the eligibility criteria for applying for a gold loan in the UAE?

The eligibility criteria for applying for a gold loan in the UAE are: - The individual should be at least 18 years old. - The individual needs to be mortgaged with the financial institution or bank if he/she owns gold, gold coins or gold ornaments. - There should be a regular income of the individual (optional). - The individual with savings or a current account with the bank can apply for a gold loan (optional).

What are the documents required to apply for a gold loan in the UAE?

The following documents are required to apply for a gold loan in the UAE: - The gold loan application form that is duly filled up and signed - Identity proof (Voter ID Card / Passport / PAN Card / Aadhaar Card / Driving License / Government Department ID Card) - Two passport size photographs - Income Proof (Form 16 / the latest salary slip with all deductions / Income Tax Returns of two previous years) - Address Proof (Electricity Bill / Bank Account Statement / Credit Card Statement / Mobile Bill / Existing House Lease Agreement)

Rohit Kumar
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