8 Benefits To Taking A Gold Loan

Indians are known for their love for gold. India is the largest importer of gold worldwide. Gold is believed to hold significant value , and is also an asset that can provide capital appreciation in the future. Many people are unaware that gold can also be used to fund any emergency cash requirements like medical expenses or children's schooling as well as business setup as well as a down payment for vehicle purchases and even annual holidays with family.

When you face a situation which requires immediate cash, you can make use of the gold sitting in your bank's vault. Today, many banks and non-banking financial institutions (NBFCs) offer loans in gold. These loans can come in handy and are available in a hassle-free manner whenever there is a need to get cash in a hurry. You can get instant gold loan or instant gold loan that you could have in any kind like gold coins, jewellery or gold bars.

The main advantages of loans against gold are as the following:

Quick Processing - Since gold loans are secured with physical gold that banks and other lending institutions can easily approve such loans. For banks that lend against gold, it's more secure as they are able to easily trade the gold in the event that the borrower defaults. These loans are usually disbursed within hours by banks. This leads to a lower processing time and therefore, added convenience for borrowers.

Option to pay interest only Some gold loans come with an option that allows the borrower only to pay the interest part of the loan. The principal portion of the loan can be paid at the close of the loan, or at the end of the loan term.

Significantly lower Interest Rate Because INSTANT GOLD LOAN are secured loans, banks will charge lower interest rates when in comparison to loans that are not secured such as personal loans. The interest rates for gold loans can range between 13 and 14%. In contrast personal loan rates usually range between 15 and 15%. The bank will reduce the interest rates for gold loans for those who have additional collateral.

Zero Processing Fees - A lot of banks and NBFCs do not charge any processing charges since gold loans are made instantaneously using gold as collateral that is held by the bank.

Minimal Foreclosure Fees - Many banks and lenders do not charge fees for prepayments for gold loans.

The applicant doesn't need to provide proof of income. provided - Lenders rarely ask for income proof in order to approve loans in gold. The loan is secured by the borrower's own gold pledge.

The impact of poor credit is not a factor. History - In most loans, banks will grant loan amounts depending on the repayment capability and credit history of the person who is borrowing. This is not true for gold-based loans. Because gold is used as collateral, lenders are assured about the repayment of the principal component. They don't depend on the credit history of the borrower before granting the loan.

The security of physical Gold The responsibility for keeping the physical gold safe is the responsibility of the lender. It is typically kept safe in the vault of the bank and therefore, borrowers don't have to worry about this. The bank will return the gold to the borrower once they have repaid the loan.

Conclusion

Gold loans are easy to get, but those who take them must make sure that they repay the loan in time, otherwise the gold may have to be handed over to the bank. Customers can obtain a loan from the gold loan company of their choice because the process of disbursement can be quick and easy.