8 Ways Gold Loan Proves to Be Best For Your Financial Requirements

There are several types of loans for people to choose from. Amongst these, personal loans, vehicle loans, business loans, home loans are the most popular ones. However, you can also get a loan against your gold owned by you. Lenders are eager to provide gold loans as most of the Indians possess gold in the form of gold jewelry. Also, gold ornaments have a good amount of appreciation over the years. Hence it is considered as a secured asset to provide a loan.

You can get a loan against gold immediately for instant cash required for various reasons like marriage, child’s education, family vacation, medical emergency etc. Below are the top 10 benefits of applying for a gold loan.

1- Instant processing and disbursal

Being a secured loan, lenders process the gold loan quickly as the borrower provides gold ornaments or coins as collateral. Once you submit the gold to the lender, an immediate evaluation of its value is done. Based on the current market value and the LTV ratio, the loan amount is decided. Therefore, the process is quite fast and convenient.

 

2- Your gold is safe and secured

The gold kept as collateral is safe as the lender offers top-notch security. Your gold will be kept secured in a locker or vault until you repay the entire loan.

3- No CIBIL required

Being a secured form of loan, your CIBIL score does not play an important role while avail gold loan. You just need to have the basic documents like your identity proof, address proof, etc along with passport size photographs.

4- Lower interest rates

Lenders charge a low interest rate gold loan as compared to an unsecured personal loan. As they already have your gold as security, they do not have to worry about losses due to non-payment of loan.

5- Flexible repayment options

You can choose to pay the loan according to your preferred method. Unlike personal loans, a gold loan can be repaid by paying only the interest amount on the loan until the loan tenure. The principal amount can be repaid when the loan tenure ends.

6- Easy eligibility criteria

If you are more than 18 years old, you are eligible for gold loan. Other loans are often offered to people who are at least 21 years of age. The loan application does not depend on your credit score, past repayment history. It depends on the value of gold ornaments you have. The loan is available for everyone which even makes homemakers eligible for the loan.

7- You can use the loan amount for any purpose

Many take loan for investment, business establishment, education, marriage, etc. there is no restriction on the use of the loan amount. You can fund any essential purchase, vacation, medical emergencies as long as it is legit and not illegal.

 8- Fulfil your short term financial needs instantly

Gold loan can easily fulfil your short term financial needs and goals. Hence you do not have to avail a personal loan for the same.

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