Advantages of Gold Loan over personal Loan

Gold for Indian residents has sentimental value. Indian people take it not only as personal belonging but also a sense of financial security. They like to keep gold in shape of coins, jewelry, and bars, which can be used in dire financial emergencies.

The gold loan market is slowly but steadily growing in India as people are realizing the potential of using the metal for personal and business loan rather than letting it gather dust in the lockers. Indian government has made it easy for people to avail gold loan from banks, or NBFCs.

Here are some of the benefits that gold loan can fetch you:

1. No Income Proof Required: While obtaining other loans from any institution, you have to submit income proof because no collateral is asked by the institution. The institution needs to ascertain your repayment capacity. When taking the gold loan, you need not submit income proof as your gold is the collateral kept with the loaning agency.

2. No Time Consumed: Taking personal loans is a time taking process as the loaning company takes time to check and ascertain that the applicant is capable of returning the loan in time. While on the other side, steps to get even the best gold loan are very simple. You submit your gold as collateral with the lending company and after signing few papers; your loan amount is approved.

3. Bigger Loan Amount: When you apply for personal loan, you cannot borrow more than certain sum from any lending institution while gold loan can be availed to a far greater amount. In this way those who want higher amount of loan can easily apply for gold loan. The lending companies need not assess the credit history of the applicant who needs gold loans.

4. Low Interest-rate: If you compare the interest rates of gold loan and personal loan, you will find that gold loans are comparatively cheaper. So it becomes little easier for you while repaying the gold loan amount.

5. Flexibility in Repayments: You get various repayment options in gold loan and you can select whichever option suits you. EMI facility is also available in gold loan or you can opt only for paying the interest during the loan tenure and repay the loan amount at the end of the loan term. While a fixed amount has to be paid per month for other loans.

Since prices of gold rise and fall frequently, it can prove the best gold loan when the prices of gold are high. It has been proved many times that obtaining gold loans are a profitable option over other loan. Among many institutions offering gold loans with various options, you must know about Rupeek Gold Loans Company, which can prove the best resort for taking gold loans.

Rupeek is a certified gold loan company that has been operational for more than five years now. You can get in touch with the company for quick disbursal of gold loans.