GOLD LOAN FOR PURCHASE SOMETHING
People try to settle up their loans by taking loans. Each category of loan criticizes each other with their schemes, benefits, and plans. Can a gold loan be taken to purchase something else? Let us go with the topic and try to find out the facts on it.
Gold loan is a type of secured loan that can be given easily by lenders as it involves security so it results in complete safety to both lender and borrower. Several banks and NBFCs only deal in gold loans. why gold loan, When you can avail a personal loan? What makes a gold loan a good option? Laying up security for acquiring a loan is a better option?
Gold prices have been rolling up since the hike in the prices of yellow metal made gold more valuable. Today the rate per 10 gm gold is 46,415/- which says that gold in its various forms has become more and more expensive and the prices are going to touch the peak in the future.
Usually, if we see the prices of gold and evaluate its value, then the price per gram. Seems like, the prices of gold can increase in the upcoming future which means investing in gold is a secured option but it also requires a huge amount of investment.
Talking about the gold loan, today banks are easily available to provide you a loan on it. It does not involve any of your past performance, credit score, third party guarantor, just an individual who can submit his/her yellow metal and can take a loan on behalf of it. Now the solution to why the gold loan is a good choice? It can easily be stated that you can arrange a good amount for your use. As we can see the increasing price of gold in the market, it can be easy to detect that prices are going to increase more and more.
The obsession level of Indians with gold loans brings back an individual to invest in it. Usually in our culture buying gold is considered auspicious on every important occasion, even your gold will bring you up to an option to arrange cash if you are in sudden need of it.
For eg: a corporation Bank gold loan is outlined with interest rates on different gold loan categories. Gold loans are not only cheaper than conventional personal loans but are also easy to get.
Well, the matter of fact is that a gold loan is considered a far better option than any other loan. Availing a personal may not involve security but the interest rate that will be simply added to your loan amount will create heavy pressure on your repayment amount. Personal loans are available at higher interest prices (usually between 15%-30%) than the interest charged on gold loans.
What can be purchased on a gold loan? As already discussed above, a gold loan is a very good option to arrange cash in time of requirement. Easy process and more value to your security will increase your purchasing power. Sometimes people surround themselves with a situation where they have to surrender things on bad terms but in a gold loan, there is no such issue as you have already mortgaged your things on behalf of which you have been given a loan. Today the RBI, the regulatory body of India Also declared to increase the loan amount value on gold up to 90%.
Reasons for taking a Gold loan :
- Expansion of business.
- Short-term needs mainly in terms of emergency.
- Repayment of the personal loan amount, or any unforeseen events.
- Also, the gold loan can be used as a bridge to pay down payments for purchases such as cars and homes.
- Personal use, such as money received from Gold Loans can be used to fund a wedding, education plan, hospital expenses, etc.
CONCLUSION: Gold loans are hassle-free and less time-consuming. It is important to address the situation of whether to take a gold loan or not. Unnecessary loans or gold loans are taken to further repay the previous debts can create heavy pressure on your pocket.
Also Read:- Gold Loan Plays An Important Role In Medical Emergencies Too
