As we have been hearing, a gold loan is just a loan against gold which you offer to the lending institutions or to the lenders directly. An individual when ready with all the gold gives his/her gold articles as collateral. This very simple way of lending a loan has experienced very strong growth and which eventually led to gold prices in the market price to see a rapid increase. Now let us see what factors had an impact on this gold loan to bare these many advantages
First things first, let it be any sort of process or work, all that an individual wishes for is to get done with it any soon as he or she can, and that’s exactly what a gold loan stands for, “Quick and Fast Processing”. Yes, in comparison to any other loans such as let it be home loans, personal loans, what so ever, the processing time of the gold loan is super quick and literally can be as quick as can be the time period from 1 hour to 3 hours. And wondering how all this is possible? Well, because it is nothing other than a very secured type of loan one can get their hands on!
Now, the next thing a borrower looks for is to save as much of his or her money without going to waste in the processing procedure. And we are mentioning in regards to the “PROCESSING FEE”. Now let us let you know that gold loans are the right choice for this because there is no literally Zero Processing Fee, which is involved in the times of gold loan which is opted for. Every borrower set totally free, without being charged a single penny as a processing fee. Now as we are in the flow about the fee, next comes the gold loan interest rate, which might frighten most of them because of the high rates that they apply. But here comes the gold loan again with “LOW-INTEREST RATE”. As mentioned above regarding gold loans being the secured type of loans, therefore, it is associated with a very low-interest rate when compared to any other loan, especially personal loans as they are under an unsecured type of loans.
But even though the front end charges are minimal, the customers might have a slight worry thinking if there are any kind of hidden charges they are being charged for. Well, this is not at all the case with gold loans, as it offers complete “Transparency”, and also makes sure to assure that there are no hidden charges that run behind any of the borrowers or customers. Gold loans also provide everyone with 100% “SAFETY AND SECURITY”. In this way, it is assured that their gold is always safe and is secure enough and It is kept in a VAULT SAFE.
The main important relief that every borrower a gold loan gets to enjoy is that gold loans do not demand any high-level documents and only require “GENERAL DOCUMENTS” and in the meaning of general documents, they ask for proofs that are very regular and kind of documents that every individual can be in a position to present from his/her end. These documents are Government ID proofs such as AadharCard, PAN Card, Driving Licences, etc.
And also they do not ask for any income-based documents so there is “NO INCOME PROOF REQUIREMENT” as well.
As listed above, these are just some basic advantages of the gold loan, and there are many many more, which you will find out soon!
