Gold is considered to be the heaviest and glamorous metal. It is an important asset in an individual’s life, especially for Indians. The Indian market is lavish when it comes to gold. The benefits of buying gold jewelry are plenty. It carries great value not only in the form of an ornamental piece but it also has a resale value which gives gold a great benefit and acts as an asset as well.
One of the strongest advantages of gold is that, that it can be used to invest in any other alternatives through the means of gold loans. A gold loan is one through which, one keeps gold in the banks as a safekeeping and get money based on its authenticity, purity and quantity. Physical gold is has been the best long-term store of value. Even though gold prices fluctuate, one thing which it guarantees is that the value of gold never decreases. Gold will always have its value, it can be sold if in the need of currency.
Gold has always shown that it can protect investments during periods of economic downturn and market volatility. It is an easy and convenient way to diversify one’s investment. Gold is known to show a steady and good performance even during the periods of recession. Gold is a tangible asset that people tend to invest in times of economic deprivation. As compared to personal loans, gold loans are backed by physical gold, so the bankers are much happier to provide with a gold loan. Lending against the gold is safe for the banks as they have an option of selling the gold in case of default. The processing time is much less when applying for a gold loan.
Gold loans have a unique feature where the borrower has the option of just paying the interest rate compared to other loans which are unsecured as personal loans. Also, if a person attaches another security as collateral, the interest rate for the gold loan can be reduced further. Gold loans are provided by both banks and NBFCs, and some of these organizations don’t charge any prepayment charges when applying for a gold loan.
As these loans are given in lieu of gold which is held as collateral with the bank.Generally, lenders or banks don’t ask for income proof, as a person who is aged above 18 and posses gold, can apply for Muthoot Finance gold loan by providing required documents mainly for identity proof. Unlike, personal loan, applying for a gold loan is much easier, as the loan approval process is swift and easy. Credit history is also not required, as it is a secured loan. There are flexible repayment options.Gold can always be of utmost use, as it doesn’t perish away with time. Even if it is lying at home, one can always find ways to make better use of it.
