Apply for - Gold Loan
Gold is one of the most precious and costly metals in India. Its value in our lives cannot be ignored because every person is attached to it emotionally. However, what is the point of keping your gold in a closed drawer when it could help you in times of emergency. Taking a loan against your gold can help you to overcome any drastic situation.
Why Should One Apply for a Gold Loan?
There are many people who buy gold ornaments, jewellery or invest in gold coins. This is because, over the recent years the value of gold has risen and so has its importance. When a person buys gold, it gives a sense of security to the people that they have made a safe investment. Unlike other investments gold as an investment is considered safe. Not only this, it is loved by women. However, most people do not realize that the gold bought for securing their future can be used to safeguard their present as well. A person who is in need of some kind of instant finance can apply for a loan on the gold that they have in their house or lockers.
Now, any person who needs instant finance must be wondering why should I take a Gold Loan, when I can apply for a personal loan? There are many people in the country who have a low credit score or poor repayment capacity. Poor repayment capacity of an individual may refer to the monthly salary of the person which may be low from the point of view of the bank. That is the bank may think that the person will not be able to pay for the loan on time. Lenders often do not provide Personal Loan or Business Loan in such cases. This is the reason why gold loan is the best option for these people. All that the person needs to do is provide a simple identity verification and the gold as collateral to the bank.
Why Will Banks Provide a Loan To a Person With Poor Credit?
Banks provide loans against gold to the people with poor payment history. This is because, in gold loan, the gold is provided as collateral to the bank. The women of the household are emotionally attached to the gold as well as the fact that the gold is precious for all. This encourages the borrower to repay the Loan as quickly as possible. Hence, the bank is sure that the loan will be repaid on time.