Indians are known for their love for gold all over the world. India is one of the biggest gold exporters worldwide. Gold is thought to carry a considerable amount of value. Besides, it acts as a source of capital appreciation in the future.
Not many people know that gold gets used to fund personal and business requirements. Rupeek grants you a gold loan to fund medical expenses, start-up firms, and kids’ education. It lets you make down payments to buy cars and plan holidays with your family.
When you face a situation that necessitates urgent cash, you can use the gold that lies idle in your locker. Many banks and non-banking institutions offer gold loans at reasonable interest rates. Gold loans get you covered in times of financial crisis and get sourced hassle-free.
Further, you get a loan against all gold assets, coins, and bars. The article highlights the reasons to go for a gold loan in 2022. Keep reading to learn more about the positives of availing of a gold loan at Rupeek.
What are the Positives of Getting a Gold Loan?
As we have already discussed a lot about gold loans in the above sentences, if you are planning to apply for a gold loan you must know all its benefits. There are lots of benefits Loan Against Gold serves to us like low-interest rate, minimum processing fees, easy documentation, no credit history, high valuation, insurance cover, and more. Let’s know the reasons one by one to opt for a gold loan in 2022.
Following are the reasons to opt for a gold loan in 2022:
The Gold Loan has a Fast-Processing Time.
As loans have genuine gold as collateral, banks and NBFCs find it easy to grant loans to clients. For lending institutions, a bank sells gold if the borrower fails to repay the loan on time. Hence, banks take a couple of hours to disburse loans. So, the gold loan has a lesser processing time and offers added benefits to borrowers.
Pay the Interest Rate Only.
The gold loan has a unique feature that allows the borrower to pay for the interest element while repaying the loan amount. Rupeek allows the lender to pay the principal amount with interest-only at the loan’s closure formalities. Rupeek has the best gold loan calculator where it becomes handy to calculate the estimated and final amount.
The Gold Loan Has a Low-Interest Rate.
As a gold loan is a secured loan, banks and NBFCs charge a lower interest rate than an unsecured loan. While the interest rate for a personal loan is 16%, the interest rate of a gold loan may lie within 13% to 14%. Further, banks can lower interest rates for borrowers that offer added collateral.
In an unsecured loan, banks sanction the loan amount based on the credit history and repayment capacity of the borrower. It is not the same for gold loans. As gold gets used as collateral, banks get payment assurance from the borrower.
Rupeek may not ask for your credit history and income proof to grant the gold loan. (For actual information visit Rupeek’s official website)
The Lender Looks After the Security of the Gold Loan.
The obligation of securing the gold lies with the lender. Typically, banks keep gold jewelry and coins in the safety vault. So, borrowers don’t bother about the same. Once the borrower repays the loan amount, the bank returns gold to the borrower.
Most banks don’t charge any foreclosure fees. The minimum prepayment charge of a gold loan is 1%. Do you want to make the most of the opportunities?
Effortless and minimal documentation is another cause to lure people to a gold loan. While applying for a gold loan you don’t ask to provide a long list of documents to apply for a gold loan. You will only need some KYC documents, and passport-size photographs with ID proof, and you will be good to go!
Freedom to Use
The loan amount you get availed for yourself can be used for any requirement as per your need. You can serve any of your purposes with the raised gold loan amount like a medical emergency, down payment of your vehicle, as a business capital, agricultural purposes, your child’s marriage, or anything.
Like other kinds of loans such as personal loans, marriage loans, and marriage loans; a gold loan does not demand any strict eligibility conditions, employment type, CIBIL score, or anything. If you are an adult who possesses gold ornaments and wants to get a loan amount against them, you can get it very easily against gold. It is as simple as that. The loan amount will simply be determined by the weight and purity of your gold.
For gold loan approval, contact Rupeek today.