Reasons To Choose Gold Loan Over Any Other Type Of Loan
At low-interest rates, a gold loan is a fast and convenient way to meet immediate financial needs. This loan can be used to fund a variety of life events, such as a child's education, a wedding, or a business venture. Gold is an asset that can be put to work for you by taking out a loan against it to meet short-term financial needs. Loans against gold are offered by banks and NBFCs as a form of collateral, such as gold jewelry and coins. On repayment of the loan, the borrower receives the gold back. Indians are recognised for their love for gold across the world. Gold is thought to hold great worth and also as a source of potential capital appreciation for the future. However, few people realize that gold can be used to cover any unexpected cash needs, such as medical bills, children's schooling, business start-up, automobile down payments, and even yearly family vacations.
Reasons To Select A Gold Loan
1) Quick Processing
You can acquire a loan against gold in any form, such as jewelry, gold coins, gold bars, and so on. Banks and other lending institutions are more than happy to give out gold loans because the collateral is real gold. Rupeek is your best bet when it comes to borrowing money from a reputable institution. Some gold loan providers offer online gold loans that are fast and convenient for those in need of immediate financing. Aside from the best price for your gold, we also offer doorstep service. This reduces the time it takes to process a loan, making it more convenient for the borrower.
2) ‘Pay Interest Only’ Option
When it comes to gold loans, there is a unique feature that allows the borrower to only pay interest while they are repaying the loan. The principal can be paid at the end of the loan term or as part of the loan closing procedures.
3) Comparatively Lower Interest Rate
NBFCs and banks charge lower interest rates on gold loans because they are secured loans, unlike unsecured loans such as personal loans. Gold loans have interest rates between 13% and 14%. On the other hand, personal loan interest rates are typically between 15% and 20%. The bank will lower gold loan interest rates even further for borrowers who can provide additional collateral. Interest rates on online gold loans are the lowest in the industry, and also give the highest rate per gram of gold. You can check the rates of the gold loan per gram on the internet.
4) Zero Processing Fees
Because banks and NBFCs do not charge processing fees for gold loans, many banks and NBFCs do not charge any processing fees.
5) Minimal Foreclosure Charges
Prepayment penalties for gold loans are as low as one percent at some banks and lenders.
6) No-income Proof to be Furnished
In most gold loan applications, lenders do not ask for proof of income from borrowers because the loan is secured by the gold that the borrower has pledged. Loans for gold do not require the seller to provide any documentation, nor does it require proof of income from the borrower.
7) No Impact of Poor Credit History
Most banks and NBFCs lend based on the borrower's ability to repay and credit history. Gold loans, on the other hand, do not have this problem. Loans can be granted without regard to a borrower's credit history because gold is being used as collateral, and lenders are confident that the principal will be repaid.
8) Security of Physical Gold
The lender bears the burden of ensuring that the gold is safe and secure. Borrowers don't have to worry about it because it's kept in the bank's safe deposit box. Online gold loan providers return the gold to the borrowers once they have repaid the loan.
Conclusions
This is why a Gold Loan is a great option for those who have gold and are looking to use it to fund their various endeavors. However, you must be aware that you are taking out a loan against your gold, which you must repay with the accrued interest in the form of interest payments. When a gold loan payment is not made on time, the lender has the right to seize your gold to compensate for the loss. As a result, taking out a gold loan should be approached with caution. You must visit your lender at least once to deposit your gold pieces in order to use the online gold loan function. After that, you can create an account on the lender's customer site or mobile app and link your bank account to it. So, whenever you need money immediately in the future, you may apply for a gold loan and have the available credit deposited in your bank account in only a few minutes, no matter where you are.
