A gold loan is a secured loan that is available against the gold you own. The gold is used as collateral, and the credit is given quickly. The gold is handed back to you once you repay the loan. It is a quick and straightforward way to get emergency funds. A gold loan can bail you out of troubled financial times in a very convenient and fast manner. Take a look at this article to know why a gold loan is called a savior.
Also, you can avail of a gold loan from both banks as well as NBFC.
Top 6 Reasons to Choose a Gold Loan
Straightforward financing –
There is no complicated jargon or logic associated with a gold loan. It is a very honest loan to understand. You walk in with your gold, pledge it as collateral, get a receipt, and the loan amount reaches your bank. You repay the loan in parts, and as soon as the entire amount, along with interest, is refunded, the gold is handed back to you. The loan can be repaid in easy and flexible EMIs.
No need to sell jewelry –
The ornaments you own are of great value to you. Often, they get passed on from one generation to the other. Selling off such an ornament becomes very difficult, but when financial hardships befall a family, this is commonly done. However, when taking a gold loan, there is no need to part with your precious jewelry permanently. Rather than selling it off and losing it forever, take a gold loan against it. Get the funds, and later on, get the gold back as well. You can get a credit of up to 70% of the total value of the gold.
Uncomplicated paperwork –
The applicant only needs an ID proof, address proof, photographs, and a signature proof when taking a gold loan. There is no need for any complicated paperwork, making it very easy for you to get the loan. Once you submit the papers and the gold, the credit reaches your account in just a few hours.
Credit score not assessed –
A vast majority of the loans in India are disbursed after checking the applicant’s credit score. This applies to the secured as well as unsecured loans. However, in the case of a gold loan, the credit score is not assessed. This is a convenient benefit and allows a person with a poor credit score to get a loan as well.
Low-interest rate –
A gold loan has a lower price of interest, as compared to a personal loan. This is because the gold is used as collateral, and the loan is secured, whereas a personal loan is an unsecured loan.
Very safe –
A gold loan is very reliable. The ornaments you pledge are safely kept by the lender in large vaults that are guarded manually and digitally round the clock. The lenders also ensure the gold to provide a second layer of security.
With so many benefits of working in its favor, a gold loan is a convenient form of financing that everyone must utilize. If you need some funds urgently, do consider getting a gold loan at the earliest.
In times of financial crisis or disaster, what exactly do you look for? We believe it would probably be having the money in hand to address the situation which has arisen due to the financial crunch. Today, one of the easiest ways to get money is by taking a loan, which is available on simple terms & conditions. Banks and NBFCs offer a particular investment for every situation. For instance, there are education loans for meeting the financial requirements for completing higher studies; to own your dream house, there is the Home Loan; or if you need to take a loan for any personal reason, there is the option of availing a personal loan.
In every Indian household, gold jewels are the most precious ornaments which are preserved and kept safe. They are locked safely. However, it’s to unlock them and utilize them and reap all the benefits coming from it.
In the entire lifetime, we all will face a situation in which we are short of money, or there is a financial crunch.
Lending and Borrowing can be considered as the best form in such a case.
Gold Loan is a form of secured personal loan. The money extracted from the loan can be used for multiple purposes like personal savings, education, marriage, or anything.
Some unknown facts about the gold loan :
People both in urban and rural areas can avail of a gold loan.
Urbanization has reached almost every corner, and people are aware.
Even in the rural sector, the farmers and agriculturalists can get a gold loan. Rural people can avail of a loan at a nominal rate of interest.
With Gold Loan, you can remain stress-free.
Availing such a loan can be conducted in a hassle-free manner. The users need not follow strict and stringent rules carried by the banks. The most luring part about the gold loan is that customers can fetch the loan even with a low credit score.
No prior background check about the credit history is conducted.
Moreover, people are recommended to conduct proper research about the same. A well-informed customer becomes a smart investor.
Many people are scared, and it’s ok. Various sentiments are attached with the jewels. No need to worry as your gold jewels will be kept safe within the bank lockers. There are CCTV cameras, security guards, and strict surveillance. In case of theft or any unforeseen situation, the money will be paid back.
People can also make use of an online gold loan calculator to get an estimation about the returns. There are various banks with different gold loan schemes. People can choose as per their roles and goals.
Also, the gold loan is very flexible as the repayment can be made quickly. IN some cases, the period can be extended, and relaxation can be done with a valid reason.
The customer should also know every detail about its gold. A prior gold test can be helpful. The more the value, the higher the carrots, the higher would be returned.