Gold is seen as having substantial value and as a possible foundation for sustainable financial development. Furthermore, few people realize that a gold loan per gram would be used to cover any unexpected cash needs, such as medical bills, children’s schooling, company start-up, automotive down payments, and even yearly family vacations.
When you need immediate cash, such loans might appear helpful and can be obtained in a hassle-free method. You can acquire a loan upon gold in any form, such as jewellery, precious metals, gold, and so on. NBFC’s like Bajaj Finserv offer loan against jewellery only. Read on to understand the features of a gold loan and why people find it so popular.
Gold Loan Features
Given below are some of the features of a gold loan:
- You can avail of a gold loan of up to Rs. 1 crore or up to 70% of the value of the gold jewellery that is pledged
- Your gold jewellery is kept safe and secure at all times.
- In much less than 30 minutes, you’ll have your Gold Loan ready.
- Liquidity is available at any moment.
- There are no EMIs, no management fees, and you may make use of the loan facility.
- Interest rates on Gold Loans are comparatively lower than other loans
- Information is simple, and the procedure is quick.
- The borrowing limit fluctuates with the nominal exchange rate on the market.
- Only the quantity of the overspend that you utilize is subject to charges.
What advantages can gold loans provide?
1. Rates Of Interest
Certain loans, especially personal loans, have substantially higher interest rates. Mortgage rates on credit cards, for example, range from 12.75 % to 15%, whereas interest of gold loan online payment has dropped as low as 12% per year.
Especially compared to conventional mortgages, gold loans are a lot superior option. If the sum is significant, the savings from a reduced cost of borrowing can be significant. Taking out a gold loan is thus recommended.
2. A One-Hour Loan Disbursement
Lending institutions might take 24 to 48 hours to be still issued. When it comes to borrowings, all you have to do is assemble the gold you want to guarantee and your Aadhar Card, and you should be able to get the monthly payment in under an hour. This is especially true when visiting a gold lending company. As a result, it provides you with the dual benefits of rapid disbursement and a cheaper cost of borrowing.
3. Fees For Processing
In the instance of gold loans, your application rate is substantially lower, and in certain circumstances, it is even nil. Most institutions levy a service fee of around 2.5 percent when it comes to personal loans. Even house and vehicle loans have a hefty registration fee attached.
No Prior Credit History Is Necessary
A credit score is therefore not required. For instance, if you apply for a private loan and your credit record is poor, the bank may deny your application. Because gold is used as protection, the background is irrelevant for borrowings.
No Need To Show Evidence Of Income
Another benefit of a loan facility is that this does not demand evidence of earnings. A vehicle loan, a house loan, and a lending institution need the borrower to provide some income. Without a declaration of the gold loan company or evidence of pay, it is nearly hard to obtain anyone else loan.
6. You Can Only Pay Interest
You may pay the interest each month when it comes to lending. Let’s imagine you signed out an Rs. 1 lakh gold borrowing with a 12% interest rate. You may unlock the gold by paying just Rs. 1,000 per quarter and a flat fee of Rs. 1 lakh whenever you wish to.
7. There Are No Fees For Early Closing
There are no bankruptcy charges associated with a gold loan. These fees might be as expensive as 4% for individual loans, which is rather expensive.
When a scenario arises that necessitates immediate cash, you might make use of such gold in your bankers’ locker that has been sitting idle. A gold loan per gram can be obtained in any form, including jewelry, precious metals, gold, and so on. Gold loans are now available from various banks and foreign financial institutions (NBFCs). Gold loans are quick and cheap to obtain, but you must ensure that you repay the loan, or the metal will be forfeited.
Compared to banks, finance companies offer an expedited gold loan application process and flexible repayment options.