Many people require financial assistance at certain points in their life. Some may need it to send their child abroad to study, while others may want to start their own business. There are situations where one may also need a lump sum amount of money suddenly, like if they experience a medical emergency.
During such scenarios, people often explore the varied financing options available to them to acquire the money they need.
Taking a Gold Loan
Today there are many types of loans available for specific use cases, such as vehicle loans, student loans, business loans and so on. However, among the available loan options, gold loans are the easiest and smartest way to get the funding to meet urgent financial needs. That is if you have an adequate amount of gold lying with you. You simply have to keep your gold as collateral with the chosen lending institution, and they would provide you with the funds based on the current market price of the precious metal.
Low Interest Rates
When you apply for any type of loan, you check and compare the interest rates. Being a secured loan, the lowest gold loan interest rate tend to be way more attractive than other types of loans, including personal loans and credit card loans. Hence, for anyone who owns gold ornaments or coins and requires urgent money, taking a gold loan would be a good decision.
High Loan to Value Ratio
With the help of a gold loan, you can get a loan amount of at least 75% of your overall gold value. For instance, if the current value of your gold is INR 10 lakhs, you can get a loan of INR 7.5 lakhs. The value of gold ideally keeps rising in the market. Hence, anyone with a good amount of gold would be able to avail of a substantial loan amount through their precious asset. Moreover, this gold can also be reused. As you get your gold articles back after repaying the loan amount, your investment in gold stays the same with better value.
Easy and Instant Finance
Many types of loans take days or even weeks to get processed. It becomes a huge problem if you need money urgently. However, if you plan to apply for a gold loan, all you need is to visit the branch of the chosen bank or NBFC with your gold assets and get the loan amount credited to your account within a few hours. The lender shall assess your gold value and decide the loan amount. The documents you need to submit for such loans are quite minimal. Thus, the entire loan process is simple and quick.
Gold is a precious metal in India and worldwide. It additionally is among the most important assets owned by people, especially women. It provides them with an opportunity to acquire money in times of need simply by keeping their gold ornaments as collateral at a reputed lending institution.
