Understanding More On Gold Loan
In gold loan, you can avail loan by providing gold ornaments as security to the bank or financial institution. You can avail loan amount up to the institution’s regulations. But you are supposed to surrender your gold till the repayment of principal amount along with interest.
There has been increased popularity amongst gold loans because of many reasons such as increase in the gold prices and number of institutions providing it. Borrowers are of the opinion that gold loans are easy to avail, require less documentation and take less time for approval.
We will discuss the features as well as the benefits of gold loan.
Safety
If you need money for fulfilling your short-term needs, then you can avail gold loan. You need not worry about the safety of your gold ornaments and jewelry. Your gold will be stored in the vaults of the bank or financial institutions. You do not have to incur other storage expenses such as locker charges. You must feel that your gold is safe with the bank or financial institutions.
Quick disbursal
For availing gold loan, you are required to approach the institution with minimal documentation. You must provide your identity proof and proof of residence. Yes. You have read it right. You are not required to submit your income statements or tax returns. These are not required. The institution is also not going to check your credit report. It will just verify your documentation and check the authenticity of your gold provided by you. You will be provided with the required gold amount within half an hour upon approval. You also do not have to provide any guarantee or references.
Simple interest loans
You are not required to pay the monthly commitment of EMIs like that of other loans. This saves the interest paid by the borrower. These loans work on the principle of simple interest. You have to commit low. It is absolutely fine even if you are paying only interest for a month. If you fail to pay interest in a particular month, you must pay in the next month.
Low interest
The gold loans are cheaper with respect to the interest rates charged by the leading banks and institutions.
No debt trap
You are not caught in a debt trap. It means if you are unable to repay the loan amount, then you can ask the bank to keep the gold and terminate the loan obligation. Well, this would be affecting you emotionally. But the crux is that you are supposed to refinance the debt obligation.
Prepayment and repayment
You can prepay the loan when you desire and have surplus funds with you. There are no prepayment charges involved. You can repay as and when you wish. The interest amount also gets reduced as you repay your loan.
So, dazzled by the gold loan features and benefits? So, next time, when you are in need of urgent cash, you can avail gold loan instantly. Provided you have the gold!
This seems a very feasible option especially for rural and semi-urban population who prefer simpler means of availing gold. Lending loans from banks is much better, simpler, safe, cheaper and reliable compared to private unauthorized local lenders who charge exorbitant interest rates. The simple interest policy proves beneficial for long term borrowers as its cost effective. However, a well known bank should be approached probably in the branch where one is an old customer who is well aware about the working of the bank.
With gold prices increasing consistently over the last years, people are utilizing the power of gold that lies in their lockers, to get easy loans. People can avail a loan by simply providing their gold belongings to the bank, irrespective of their credit history, as opposed to other types of loans where credit histories are checked thoroughly. Gold loans are one of the easiest and fastest forms of loans available, that can be done without much paperwork and hustle. Hence, gold loan is one hassle free option for urgent money requirements.
Gold loan is a hassle-free way of availing loan by providing gold ornaments to banks or financial institutes. It is a quick and easy way of meeting your financial needs as minimum paperwork is required; loan amount will be disbursed within 30 minutes of approval. Also, you don’t need to worry about your gold. Loan providing body will evaluate your gold with a Carat Meter. Ornaments are packed in the presence of borrower at the time of sanction of loan & they are stored in the vaults of the bank or financial institutions.