In India, gold loans are the most popular loans as most households have gold jewelry and ornaments sitting idle in lockers. Gold is often passed from one generation to the next, and it even offers instant liquidity. When you are in urgent need of money for personal or business use, you can easily use your gold to fund your instant financial requirements. You do not need to sell your gold but just pledge it to a reliable lending institution. Another benefit of taking a gold loan is that depending on your need, it can be used for any purpose.
Remember that the ease with which you procure a gold loan is mostly set by the lender. The factors on which it is based on are - rate of interest, LTV (loan to value ratio) and more. Nowadays, you can easily and conveniently apply for gold loan online through NBFC’s and bank’s official site or mobile application. But note that applying online does not indicate that you do not have to go to your lender. To avail this facility you need to visit your lender once, in order to deposit your gold items.
Following are the advantages of the gold loan:
• Faster processing
The changing gold loan is a secured loan and that is the reason it includes minimal documentation and lenient eligibility criteria. As it does not need credit score for its approval, lenders mostly disburse the gold loan in few hours. The best part is – people who hold perfect eligibility for online gold loan, could even get it in just a few minutes.
• Interest rate charged is low
In comparison to other unsecured loans, gold loans that are secured loans attract a much lower interest rate. If you can attach another asset as collateral, the current gold rate of interest could be lowered further.
• No need for income proof
Generally lenders do not ask for changing jewel loan as your loan is secured against gold. For this reason any person can apply for gold loan, irrespective of whether earning or not.
• One can repledge gold loans from other
Can any one repldge gold loans from other institutions or lender? Yes, you can repledge your gold from any other lender.
• No extra charges for loan foreclosure
Another important benefit of a gold loan is that there are no foreclosure charges on loan, after tenure of 3 months. Some lenders or banks charge 1% penalty for pre-payment.
• CIBIL or credit history is not required
If you avail a loan, generally financial institutions or banks check for your credit history. If your credit score is low, they often reject your loan application. But, to avail gold loan, this is not needed.
Hence, availing gold loans has lots of advantages and can rescue you greatly in times of dire circumstances. It is recommended to take a gold loan from a reputable and RBI approved institution like Rupeek. It is an established, more than five year old company that offers highest per gram rate along with super flexible repayment options.
https://rupeek.com/blog/things-to-know-about-gold-loan-renewal/If you have repaid your loan amount in full along with the interest, you can take out another gold loan with the same lender, pledging the same gold assets.
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