A gold loan emerged as one of the top credit instruments used by Indians over the last few years. Gold loans are based on the quantity of gold that you have available to deposit with a finance company. The gold finance companies evaluate your gold in accordance with current prices on the market. RBI will allow up to 75 percent of the value of your gold to be paid out in the form of a loan against gold. The remainder can be used to cover a loan in the event of any unexpected situations.
Considering a gold loan to meet your financial requirements is a smart idea. Gold loans have many advantages that make it among the most valuable financial instruments. You can also review the various terms and conditions associated with the loan with a gold-based loan EMI calculator on the internet. In this article, we’ll discuss five factors which make gold loans one of the best options to meet your financial requirements.
Table of Contents
Five Reasons to Pick Gold Loans to meet your financial requirements
- Simple and Rapid
This is among the greatest advantages of gold loans. The application process and payment are swift and easy. The paperwork required is minimal and you don’t have to carry lots of documents. You only need to bring the KYC document (address verification and identity evidence), PAN Card to the branch of the gold finance firm together with the gold you wish to deposit.
Large gold finance firms disburse the entire amount in the span of a few minutes’ dependent on the size of loan needed. After the financial institution has completed the mortgage appraisal the amount that will be paid will be determined. Financial institutions can offer that is between 70 and 75% of worth that the gold has. If the sum is less than 2 lakhs, you can get the whole value in cash.
- Large Sum at low credit score
The gold loan is among the few credit instruments in which you are able to obtain a huge amount of credit even with a lower credit score. The worth of gold used as a mortgage greatly reduces the risk that comes with this kind of arrangement. Thus, financial institutions are willing to provide higher credit, even for those with poor credit scores.
The amount that is obtained through a loan on gold, is substantially greater than other mortgage loans because the gold’s value is greater in the marketplace than other assets.
- With attractive interest and payment options.
It can be obtained with lower gold loan interest rates in comparison to other types of credit instruments. You can find out the final interest rate for gold loans by using an gold-based loan EMI calculator on the internet. When you use gold as collateral, the risk of the loan is reduced significantly. Therefore, financial institutions are willing to offer the gold loan with much lower interest rates.
The ability to make repayments as flexible as you want is among the major advantages of a gold loan. There aren’t any fixed EMIs or EMIs, and you can pay back the loan in smaller amounts based on your financial stability throughout the entire period of repayment.
- Extended Tenure Repayment
The repayment period of gold loans is extended up 30-months. This is one of the numerous benefits of a gold loan that eases the stress as well as the burden for the lender. It also gives you the opportunity to do self-help on how to calculate gold loan interest rate and prepare yourself to pay back.
- Secure keeping with Low Costs
The benefits of a gold loan are many advantages that you cannot imagine. You’re making your investment work, and you can be sure it’s secure. The gold you use as collateral is held within one of most secure financial institutions and safe storage facilities. Therefore, you take care of your financial requirements and ensure that your investment is kept in a safe and secure place.
These are just a few of the significant advantages of using gold loans to cover your financial requirements. Trustworthy gold finance firms offer all the assistance and support that you require to facilitate the process of obtaining a gold loan easily.
Rupeek has a low interest rate, making it one of India’s most popular gold loan companies. This seems to be a reasonable rate for Indian citizens. Their services are designed to help individuals with no involvement from third parties. You won’t be disappointed if you use their service. Do not delay and apply for the gold loans at rupeek to get the highest marks possible.