8 Smart Benefits Of Taking A Gold Loan

In the whole world, India is one of the largest importers of gold. For Indian people buying gold is a status symbol and also a potential source of income for the future. In the case of urgency if you require cash immediately that time gold becomes a savior. The cash acquired from gold can be used for personal expenses, educational expenses, medical expenses, and various other expenses. Whenever you face a shortage of cash remember the gold lying in your locker is very useful during that time.

How does the gold loan work?

The name itself says gold loan means the loan that is acquired against gold. The borrower needs to deposit a certain amount of gold to the lender for a specific period. The loan amount depends from lender to lender depending on the bank's policies.

When you take gold articles to the lender they will be evaluated, and your gold item's weight and purity will be checked. Once the gold evaluation is done you will be asked to fill out a loan application form. With the loan application form, you need to submit some primary identity verification documents. Once all the procedure is completed successfully the loan amount will be sanctioned and disbursed to your bank account.

During the time of crisis, gold loans have turned out to be a blessing apart from other financial options. There are certain benefits the applicants can reap from this kind of loan.

Benefits of gold loan:

Low-interest rate: Gold loans are secured loans so they are generally subject to lower interest rates compared to other financing options.

Anytime liquidity: The gold loan is also called “ATL” which means Anytime Liquidity. It means that you can get a loan in just 30 minutes without the need for many paperwork formalities.

Pay interest only: Gold loans have a unique feature where the borrower has the option to pay only the interest part during the loan tenure.

Nil processing fee: The best benefit of gold loan is that there is no processing fee involved. Therefore, gold loan is affordable for the people of every income class.

Income proof is not required: To apply for the gold loan income proof is not required. So, if you don’t have stable income then also you can apply for the gold loan.

Safety of gold: When you lend your gold valuables in someone’s else hand the main important thing is safety of gold. So, you have to make sure to apply for loan in the safe institution.

No restriction on the end-use: When you take gold loan there is no restriction for what purpose you will be using the gold loan.

Instant amount transfer: Gold loan is the fastest loan compared to other loan options. During an emergency when you don’t have enough time to wait to acquire money, a gold loan is the best option. Once the process is completed the loan amount is instantly transferred to the borrower’s bank account.

Nowadays through digital medium applying for gold loan has become very easy. You don’t need to visit a bank or non -banking institution to apply for a gold loan. Through apps or websites, you can apply for a loan within sometime. Or some financial companies like Augmont Goldtech Pvt. Ltd provide gold loan service at customers' doorstep. You just need to apply for a gold loan through Augmont’s website or app, after that their gold loan manager will visit at your place to do all loan formalities. So, you don’t have to take a risk of stepping out of your house with the gold items.