Should We Avail Gold Loans?
Gold is the most demandable metal in the world and it is highly volatile. In India gold has more value because gold is just not metal it's like a god. and God gives you the opportunity to take the money from the bank and pay it later on the basis of your EMI. Should we avail of Gold Loans yes because there are many benefits about gold loans and other types of loans? There are some factors to choose a gold loan above any other type of loan. Gold is easily available in India and there is less paperwork required to approve the gold loan and gold loan depends on the current Gold Rate in the market.
Some benefits of gold loan are as follows:
1) Fast Processing: Since gold is physical as collateral, banks and institutes can easily provide such loans. For banks, approving the gold loan is an easy and safe option since they can easily sell the gold in case of borrower defaults. And requires that all processes take less time.
2) Pay interest only option: The gold loan available in a new feature that allows the borrower to Pay Interest Only While repaying the loan. The principal components can be paid at the loan tenure.
3) Low-interest rate: since gold is a very secured loan, banks charge the loan interest rate as compared to other loans available in the market. The interest available for the gold loan is between 10% to 13% just like Manappuram Gold Loan, it gives a 9.90% interest rate.
4) Zero processing fees: There are many NBFCs and banks that offer zero processing fees for the gold loan and provide instant gold loans.
5) Minimal Foreclosure charges: Some lenders like Manappuram Gold Loan and banks charge zero or minimum prepayment charges of 1% of the gold loan.
6) No income proof required: In the market, many banks and NBFCs require no income proof on gold loans that makes the process simple and fast.
7) Security of gold loan: The banks and lenders’ responsibility to maintain safe gold. its normally kept in the vault and therefore, the borrower doesn’t have to worry about the gold.
Gold loans are considered safe investment options. Physical gold may not offer great yield value or it may be less, however, with gold loans the borrower can make use of the cash for various expenses. There are many banks that offer low interest rates to gold loan borrowers. 7.35% for 36 months for the loan tenure. a gold loan can be a better option as compared to a personal loan if the borrower pays the loan in a shorter duration. These are also known to have lower interest rates. It is easy to get a gold loan from the bank either if such services are available, or offline. The online application can be made through the banks or lending institute's official website.
Gold loan ways are better than personal loans because it depends on the person to person, which varies in the case every borrower requires according to the borrower's condition. Therefore banks and lenders make loans for every person such as for the educational purpose is education loan, for buying a home is home loans and different types of loans. If you want a loan for small work and short duration definitely gold loans are much better than the other type of loan. Hence many people take gold loans for their small work and the process of taking loan is very fast and smooth. I think every loan is good according to personal requirements and it is easy to pay the loan. Many people think loans are not good but if you repay the loan it’s good and makes fulfillments of your ideal values though. Gold loans make your life easier to achieve your goal and complete your dreams. Taking a gold loan is the safe option because the bank keeps the physical gold in a safe vault and the bank is disappointed in their customer .But while taking the gold loan, get the full knowledge about the interest rate and read all documents carefully.
Also read this: Features that celebrates Gold Loan borrowers
