WHY GOLD LOAN IS THE BEST WHEN YOU HAVE LACK OF FINANCES

A Gold loan is one of the most preferred loans for the Indians because it is given against the quantity of the gold articles you deposit as collateral or security to the bank or the moneylender. The banks and the non-banking finance companies value the gold based on the current prices in the market. The Reserve Bank of India allows a maximum of around 90% of the value of the gold to be disbursed as the amount of loan. The rest of the amount is kept by the moneylender as a margin and can be used in any case of unforeseeable circumstances. Availing of a gold loan is a great idea as it has a lot of benefits. A gold loan has certain features that make it one of the best loans.

Following Are Some Of The Reasons Which Make A Gold Loan One Of The Best Choices To Make In Case Of A Financial Emergency: -

• IT IS SIMPLE AND FAST- A gold loan is one of the simplest and fastest loans that banks offer. The whole process of the loan application of a gold loan is really fast. This is because the documentation involved in a gold loan is minimal, and a person does not have to carry a lot of documents with him as it is in the case of other loans. The documents needed in a gold loan are the KYC documents, which include the identity proof and the address proof.
  
  
  
• IT OFFERS A LARGE AMOUNT EVEN AT A LOW CREDIT SCORE- A gold loan is one of those financial instruments where a person can avail a higher loan amount even if the person has a low credit score. This is because the moneylender keeps the gold that the borrower deposits as security. This is why the banks and the non-banking finance companies are ready to offer higher loans at such low credit scores.
  
  
  
• THE INTEREST RATES ARE ATTRACTIVE- The interest rates on a gold loan are really attractive and flexible compared to the interest rates on the other loans. A person can check the amount of interest with the help of a gold loan interest rate calculator. As the borrower provides the gold to the bank or the moneylender, the risk decreases, and that is why a gold loan is offered at such attractive interest rates.
  
  
  
• THERE ARE FLEXIBLE REPAYMENT OPTIONS- The options of repayment involved in a gold loan are flexible, and it is, no doubt, one of the biggest highlights of the gold loan. A person does not have to pay only the EMIs because there are other options available too that a person can opt for. A person can repay the whole amount of the loan at the end of the tenure, too, with interest rates being paid every month.
  
  
  
• THE TENURE OF REPAYMENT IS LONGER- The tenure of the repayment in a gold loan is also longer as compared to the other loans. Also, the tenure of the repayment cab is extended up to a time period of around 30 months.
  
  
  
• MINIMAL CHARGES- A gold loan is more beneficial as compared to the other loans because of a lot of reasons, as mentioned above. Also, there are no extra charges in a gold loan as there are other loans such as processing charges, foreclosing charges, etc.
  
  
  

A gold loan comes with some of the prominent advantages that are not there with any other loan. A gold loan is considered one of the best loans to look up to when in a financial emergency because the whole process is easy and simple, and there is no need to deposit any income proof. There is also no requirement of having a good credit score or a good repayment capacity as an unemployed person can also apply for a gold loan. Also, the gold loan interest rate in SBI is affordable and reasonable compared to the other rates of interest in a gold loan. 

Also Read:- HOW GOLD LOAN IS DIFFERENT FROM TWO-WHEELER LOANS