Top Reasons to choose Gold Loans
You’re in a financial bind right now. How can you get out of it? Are you not sure which loan option to choose in these challenging times? Gold loans are an excellent option! By taking out a gold loan, you may be able to borrow the required amount against your gold ornaments or coins. Usually offered by banks and other financial institutions, gold loans are a type of secured loan that you can get at an affordable interest rate.
You can check the rate of gold loan today and then start calculating your EMIs for repaying, or simply visit the website of Rupeek and use their online gold loan calculators that automatically reads the current rate of gold in the market to do calculations. First of all, you can use the gold sitting at your house to get any amount of money you need and then bring it back after the loan repayment period ends. This article could be perfect for you if you are interested in getting money but are unsure why you should choose a gold loan. You will learn about why a gold loan is a feasible solution to meet your emergency financial needs. Let’s get going now!
Why choose a gold loan?
Low-interest rates, a wide range of repayment options, and easy availability of finance make gold loans an excellent choice. Here are a few reasons why.
Rates of interest are low
The gold loan interest rate comes into play when applying for any gold loan as a significant factor. Since they are secured loans, gold loans can have lower interest rates than most other loans. Because you will be submitting your gold to the lender, they will be running a much lower credit risk when giving you the loan amount.
Finance is easy and instant.
Today, when everyone is in a hurry and wants to get the loan as soon as possible, you may want to consider a gold loan. It takes just a day to get the loan amount maximum if you present your gold ornaments at the branch. A loan amount will be decided after the lender assesses the gold value. The authentication process will follow a reasonably minimal documentation process. Your account will be credited with the loan amount as soon as that happens.
LTV ratio is higher
It would help if you focused on the loan amount most of all. With a gold loan, all your requirements will be met. Gold loans allow you to borrow up to 90% of the overall gold value and a minimum of 65% of it. We’ll see what this means in practice. The maximum loan amount is INR 9 lakhs if the overall value of your gold is INR 10 lakhs. You can borrow as little as INR 6.5 lakhs.
There are up to four repayment options.
Various loan facilities offer flexible repayment terms. We would, however, use this term for the Gold Loan Scheme if we had to use it for one loan scheme. Gold loans usually come with multiple repayment options that you can use to pay back the loan amount. One of many reasons people opt for a gold loan is the freedom to choose a suitable repayment option based on their ability to repay.
Freedom of use
You can use the loan amount you get from the Gold Loan scheme for any purpose you need. There is no restriction on how you can use it. The loan amount can be used for your child’s marriage, a medical emergency, to pay for your down payment on a vehicle, boost your business growth, or for agricultural purposes. Its popularity is that it can be used for all these purposes.
Criteria of Eligibility
Gold loans do not have strict eligibility requirements, income requirements, employment types, CIBIL scores, or anything else. To qualify for a gold loan, you must have gold that you want to use as collateral. Getting a loan against gold is possible for adults who own gold. Getting a loan against gold is simple. We will determine the loan amount based on the value and purity of your gold.
By putting in the number and weight of your gold ornament, you can also use the Gold Loan calculator to find out how much you can get against your gold ornament.
Your gold is safe
The bank will provide you with full-proof lockers to safely store your gold if you are concerned about its safety. These lockers are more secure than those at home. Upon payment of the total outstanding amount, your gold will be returned to you. Nevertheless, before choosing a lender, make sure you check their credibility. Only work with reputable lenders after thorough research.
Those reasons make Gold Loans an excellent choice for gold owners looking for funds for various purposes. Gold loans have their benefits as several people take advantage of gold loans. If you also want a reliable bank for your gold loan, then peek is an excellent pick as they provide gold loans with minimal documentation.