Why Gold Loan?
A Gold loan is one of the best offers to grab today. Why? Because for a common salaried person, it becomes impossible to meet all the required luxuries of life, to meet some of the basic necessities that cannot be accomplished due to scarcity of funds and the recent price rise. Gold loans are very simple to acquire. Most of people fear losing their investments in gold since they are unsecured loans. This is a misunderstanding among the general public as they are one of the most secure means of getting a loan. These loans are the best solution for people who are not eligible for a Personal Loan or Business Loan.
What are the Benefits of a Gold Loan?
If you are looking for the best deal which suits your requirements and can help you pay back the money with comfort in time or before time, then Gold loans are the best Loan to apply. With the updated online information you will get enough knowledge about each step that you need to take. Everyone’s family members, friends, or relatives suggest enough plans and guidelines about gold loans, however, all one needs to do is compare the Gold Loan Interest Rate provided by all the NBFCs and Banking institutions and all about their gold loan plan and then make your deal. The benefits of a gold loan are many. People prefer gold loans over unsecured personal loans due to many reasons.
No income needed: All the banks and lenders before giving a loan to any person require that they have a strong repayment capacity. That is they have a good salary structure. So that it is easier for the individual to buy loans and repay it on time. But, in the case of a loan against gold, the scenario is completely changed. Here, the borrowers need to deposit gold to the companies providing loans on gold. These institutions will in return provide the approved amount of cash to the borrowers. As a result, there is no need for the income or salary proofs or structure of the individual, because all that creditors look out for is the original gold ornaments or coins as a security deposit. On the basis of the gold’s quality, the amount is granted to the borrowers. So, even an unemployed person can apply for a gold loan without any obstacles.
| Features of Gold Loan | Documents Required for Gold Loan |
| Advantages of Gold Loan | Best Rate on Gold Loan |
Bad credit record: Even though one has a bad credit history or record in the books of accounts, the companies are not affected by credit or bad debts. As far as one provides them with gold, they are not concerned with anything related to your finance or credits. Therefore, any person with a poor credit score in need of urgent finance can avail of a loan against their gold ornaments and jewellery.
Low-interest rates: A good advantage of gold loans is the low interest rate offered by the banks, which is between 12-16% annually. When you compare this interest rate to any other interest rate say, home loans, or personal loans, you will notice that the gold loan interest rate is much better to go on with. This is very advantageous for people who need a loan at affordable interest rates.
Onetime payment: Borrowers are given a choice to make onetime payment. That is, a person can pay only the interest during the tenure of the loan and then pay the rest of the borrowed amount in a single payment at the end of the loan duration.
Comfortable loan: The most convenient and comfortable loan is a gold loan, the reason behind this is that with your gold pledged to the financers or banks, you will get a loan of about 80% market value price of gold. All you need to have here is the gold. A gold loan is the easiest and quick loan to get as the processing time is lesser than 30 minutes. Most of the NBFCs can provide these loans for less than 5 minutes.
Low risk: Gold jewellery and ornaments generally belong to the women of the family. Being emotionally attached to their ornaments the woman in the family may motivate the husband to release the gold jewellery as early as possible due to the insecurity of losing it. So here, there is low risk at the creditor’s end. Borrowers end up either pre-paying the amount or clear all EMIs on time which is an added advantage.
Speedy sanction: Gold loans do not require days and months to get sanctioned. It’s only a few minutes job. No documentation or long legal procedures. It’s just a speedy sanctioning process, once gold is handed to the creditors, you will within minutes receive a cheque or cash deposit in your account. The complete process of approval and sanction of the loan depends on the quality of the gold provided and its verification.
| Leading Gold Loan Providers (Click to Apply) | ||||
| Manappuram | Muthoot | Reliance | Other banks | |
| EMI CALCULATOR |
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