Why a Gold Loan Would be Beneficial For You

Why a Gold Loan Would be Beneficial For You

Gold is one of the strongest investments to have today. The main reason being the strong value it holds and the quick resale that is present. For regular working professionals, it is a great way to invest and get good profits. One of the biggest advantages that come with owning gold is that you can always liquidate it easily. Even if liquidating it is not on your agenda – say in the time of a financial crisis, you can still get a gold loan easily. Most people take a step back thinking about the possibility of losing their investment as they are insecure loans. First of all, this is not true. There are many benefits of taking a gold loan; here are a few of them.

Convenience: Have you ever tried to take a loan of any kind? Or even a credit card for that matter? There are so many processes and procedures that you have to go by that you almost lose out on the urgent need of the money you had. All it takes to get a gold loan approved is to check the loan rates provided by the institutions and choose the best option. All banks demand income proof if they are going to approve a loan for you. With a gold loan though, it becomes extremely easy. All the creditors would check is the gold’s quality.

Forget your past record: One of the challenges that are faced when you are applying for a loan is your prior repayment history. Most creditors would not process a loan for someone who has defaulted in the past as it would be a potential risk. In the case of a gold loan though, you would not have to worry about your past history. Even if you have a dismal credit score, you can place your gold jewelry to raise money comfortably.

Interest rates: The interest rates that you pay for your loan should be one first thing you look at when you are taking any kind of loan. A huge benefit that comes is that your gold loan interest rates are between 12-15% annually all-inclusive. Compare this with the interest rates that are running on a personal loan and your choice is quite obvious. Especially in the event of an emergency, interest rates like this would be a great help.

Quick approvals: If there is one reason that you should choose a gold loan, it is the speedy approvals. Within a matter of minutes, you would be able to get a cheque or a cash deposit in your account. No more waiting for month-long approvals and scores of documentation.

Single payment schemes: You have the option to make a single payment to clear your loan. This means that you can pay only the interest amounts during the entire loan period and thence the single principle amount can be cleared at one go at the end of the loan period. How convenient is that?

Low on the risk factor: There is very little risk when compared to any other kind of loan that is available in the market today. You would be able to get the loan amount cleared quickly without the worry of quick repayments. At the same time, the value of gold is relatively constant which reduces the risk factor in a big way.

There are tough times that come upon all of us. It is never going to be easy facing all of them and the simplest way you can deal with them is with a gold loan.

Comments are closed