Indians love gold not only because it has cultural and social significance for the people but also because people consider it as a ‘safe’ option to invest in. It is not like any other tangible or intangible asset or not like any other currency whose value decreases with time. But this yellow metal is holding its value for years and its value keeps on rising. That is the main reason that people see this yellow metal to preserve their wealth and pass it on from one generation to another on the occasion of weddings and festivals.
Gold is and always has been a considerable solution in times of financial emergencies. A new trend from the past few years has been emerging in the market. The new trend is called the gold loan trend. As many Indians preserved gold as a safe option for their wealth. So now this ‘safe’ option is helping the people to raise instant funds. In a time of financial emergencies, people are pledging their gold to avail instant funds. This trend has taken the name of a gold loan. As many people in India are pledging their gold as collateral to get the loan.
Following are the reasons why a gold loan is an easy option:
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Easy and swift processing: Gold loans are much, much simpler, and easier in comparison to any other type of secured or unsecured loan. You just need gold and all KYC documents to apply and your application can get approved within minutes and the loan can be disbursed within a few hours.
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Gold loan interest rate: Gold loans offer lower interest rates to their customers in comparison to any other type of loan. The reason can also be as you are pledging your very precious thing with the lender.
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No no to credit history: To apply and get approved for a gold loan, you don’t need any credit history or credit score. After all, you are pledging your gold to the lender. Then why the lender must be needing anything else. But repayment of the gold loans on the time can help you improve your credit score.
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Flexible repayment options: Gold loans offer customers many flexible repayment options. To repay your gold loan you can opt for any repayment method that is suitable for your budget and financial condition.
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No processing fees or preclosure charges: Many banks and NBFCs like Indian Overseas Bank Gold Loan, etc. don’t charge you an extra amount than loan EMIs and interest rate charges. They offer the best policies to their customers to lure towards them.
Amid this pandemic, many people are adapting the way of gold loans to be back on track financially. Which is resulting in the growth of the gold loan market.
