Indians have been using gold in abundance since a long time ago. In addition to attracting the people’s attention, Gold can make one rich or save one from a financial crisis. And the best way for that is taking out gold loans from banks and NBFCs.
A loan provided against gold article(s) by authorized lenders like banks and Non- Banking Financial Companies( NBFCs) to customers in want and need is a gold loan. This gold loan has been in existence long before the Reserve Bank of India and the Government of India even legalized it. People have been accustomed to this loan mainly because of the pledged asset ( physical gold).
Gold is a liquid asset, and the ease of carrying is high. And this seems to be a significant reason for its higher demand than other secured loans like property loans, home loans, or business loans where the asset is a land property or a house or a business. Banks also prefer this loan over others like people as the collateral remains in their hands till the borrower pays off the loan. A gold loan EMI calculator on the bank’s official website or NBFC can be used to calculate a gold loan’s interest based on the loan amount and tenure.
Apart from the collateral requirement, a loan can also be separated as a specific purpose loan and a general-purpose loan. For example, a personal loan can be used for any reason, but a car loan or study loan can only be used for car-related services and educational tuition fees. Like a personal loan, a gold loan can be used for any reason, but unlike a personal loan, a gold loan, as mentioned, is secured and has better features than a personal loan.
The principal amount availed on a gold loan can be used for business, construction, renovation, home remodeling, vacation, wedding, buying machinery, education, medical emergencies, and so on. The bank or the financial institute a borrower avails loan on doesn’t raise a single question on its usage. Also, the loan is highly convenient, and the processing is rapid; therefore, if you want urgent money, always go for a gold loan, as you can have the money in your hands in very few hours, if not minutes.
There are various benefits of availing a gold loan. The first one is the minimum documentation requirement. There are more loans in the finance market than one can count, but most loans have one or two things similar. The bank or NBFC requires income proof to know the applicant’s monthly income for the repayment of the loan.
A CIBIL score is a three-digit number that summarises the applicant’s credit report, which contains personal, banking, and professional information, including the past credits( loans or debts availed from banks or financial companies). This score indicates the applicant’s repayment capacity, so if the score is high, the lender understands that the applicant can pay off the loan smoothly. If not, then the applicant’s repayment capability is low, making the bank or NBFC hesitate to sanction the loan.
But with a legal age applicant and a gazetted document for ID proof and collateral (physical gold), and a filled application form, the applicant gets gold loan approval. Due to this, the application’s processing becomes fast, and the loan amount’s disbursed is speedy. And that’s why the gold loan’s demand is only surging over the years.
Muthoot Finance Limited provides the best gold loans in the nation. The financial company provides gold loans to a maximum of Rs 1crore of LTV up to 90%. The interest rate of the gold loan starts from 7%. The processing charge is 1% of the loan amount and the prepayment fee incurred is NIL. The NBFC provides bullet scheme payment and EMI payment for repayment options. Both online and offline services are available, and one can choose either. Muthoot gold loan online quick payment searched on the internet provides ways for repaying your gold loan quickly from anywhere in the world within minutes. The financial company is highly reliable and well-known for its exemplary customer service.
Also Read:- Jewellers Can Now Repay Part of Gold Loan in a Physical Loan