Spike in Demand of a Gold Loan

The pledging of the gold articles in a household is expected to increase across the states with the gradual increase in the easement of the restrictions of corona-virus pandemic.This is because the people are strapped for cash to pay for the committed outflows. The corona-virus has affected everyone with its rising rate of infection, number of deaths, and it has forced the people to borrow money and thus, has dragged most of the people in financial debts and crisis. 

Most of the people have also lost their sources of income in this time and therefore, have no other option except of borrowing money. Therefore, a gold loan is in demand right now as everyone can make use of the gold that has been lying in their household from a long time and can fulfill the basic requirements and to consolidate debts in this time of an emergency. 

Also, the interest rate in a gold loan is really lower as compared to the other loans and the amount of loan also depends on the market value of the gold that is being deposited by the borrower. The gold loan rate is really affordable as compared to the other loans. Because of all these reasons, there is a demand of the gold loan in the market and more and more people are bending towards this option because it is the most convenient option to go for.

Benefits of a gold loan -

A gold loan has a lot of benefits that differentiates it from the other loans and makes it one of the best loans available in the market. The SBI gold loan interest is one of the most reasonable interest rates.  

Following are some of the benefits of a gold loan:-

No income or salary criteria:

All the money lenders, before granting a loan to a borrower, require that the borrower has a strong repayment capacity and a stable source of income, so that he is able to repay the loan but it is not in case of a gold loan. A gold loan is a secured loan which means that the money lender or the bank is provided with some security and therefore, there is no need of depositing any income proof when applying for a gold loan. This is because the person is pledging a valuable asset to him i.e. the gold articles in return of the amount of loan.

No need of a good credit score:

As a credit score is one of the most crucial factors in other types of loans, it is not as important in case of a gold loan. As long as one provides his gold articles to the bank or to the money lender, there is no need of having an ideal credit. score or a good credit history. Therefore, a person who is not working or who is unemployed or unsalaried can also apply for a gold loan because the most important thing in a gold loan is the gold that is pledged by the borrower. 

Lesser processing time:

The processing time in a gold loan is comparatively lesser as compared to the other loans. This is because there is minimal documentation and the verification process is also not so long. Therefore, a gold loan can be considered in times of an emergency as it is not a time consuming process. Only a few hours are taken for the processing of a gold loan as the main documents that are required are only the identity proof and the address proof. 

Convenience:

A gold loan is one of the most convenient loans as the only task of the borrower is to provide the gold to the money lender or to the bank and in return, the amount of loan will be disbursed in his bank account within a few hours. A person can get upto a maximum of 80% of the market price of the gold.

Read More:- Gold Loan Calculator takes away your worries of paying debt