A majority of people own gold ornaments which can further be exchanged for financial requirements by availing a gold loan. Various financing options and gold loans are of great value during the crisis. There are various benefits of a gold loan, and it can help during the time of emergency. You can exchange gold ornaments for cash or other jewelry items. Here are some benefits of gold loans:
Benefits of gold loan:
Lower interest rate:
Gold loans are secured loans that usually give you a lower interest rate than other financing options like home loans, personal loans, and other loans. The lender will offer you a lower interest rate which is beneficial for financing options.
Enjoy liquidity anytime:
Gold loan is known as ‘ATL,’ which means anytime liquidity. You can avail of a gold loan in less than 30 minutes which will save you from excess documents and formalities. It is unlike other financing loan options, making it easy to avail of the loan faster. You can get an instant loan in exchange for gold.
Option to pay interest only:
The gold loan has a feature where you can pay the interest during the loan tenure duration instead of paying the entire amount. Then, later on, you can pay the principal amount during the time when you close the loan. You can also check the gold loan rate of interest with the lender in order to get the best offer.
NIL processing fee:
One of the best benefits of getting a gold loan is that no processing charges are involved. People prefer to go for a gold loan because it helps in getting the amount without any extra charges.
As gold loan happens physically thus, there is minimal documentation, and the eligibility criteria are also lenient. It helps the lender in processing the loan faster, and the borrower also gets the amount as soon as possible.
Income proof is not required:
There is no requirement to prove that you have an income. Unlike other loan options, a gold loan gives you the amount instantly, and there are no penalty charges, foreclosure charges, or any other charges for the loan.
Safety of gold:
The financial institutions provide a triple layer of security that can be submitted as collateral. You can keep the gold secured in the vault and then get the jewelry back once you pay the loan amount in full.
No restriction on the end-use of funds:
There is flexibility to use the loan and meet any expenses like higher education, marriage, other emergency expenses, and much more. You will not have any limitations in using the loan for limited things.
No credit score requirement:
Unlike the other loans, there is no dependence on credit scores. You can get a loan based on the market value of the gold without waiting for the lender to go through your credit history. You can build up a good credit score by taking up a gold loan and making the repayments on time.
There are a lot of benefits to availing a gold loan, and it helps to rescue from emergencies. The best thing about the gold loan is that there is minimal documentation, fast processing, and much more. However, you can research more options to avail better offers.