Top Reasons why Gold Loan is the best borrowing option
The Gold Loan has come out to be a new and a developing lending option for the Banking Industry in India. There are many individuals who hold gold gems or jewelry, which is lying inactive at home or in the bank vault.
A gold loan generally encourages you to open the value of these precious metals by enabling you to get a loan against them. The way towards getting a gold loan is somewhat straightforward. You can approach any bank or non-banking lending company which offers a gold loan against your ornaments. The bank or loan specialist will complete a valuation of the gold ornaments and check them for value, weight and so forth. Sometimes, you may likewise be required to indicate evidence of your responsibility for gold ornaments being pledged by you. Once the ornaments have gone through the checking procedure, the loan sum will be given to you. Additionally, similar to some other sort of loan, banks or moneylenders will just give you a loan which is close to eighty percent of the gold value.
Here are some of the reasons that we recommend Gold Loan as the best borrowing option:
Available to a Larger Number of People: Gold Loans are accessible to a broader mass of people since the process does not require to provide any documentation like compensation slips, testaments, record as a consumer, bank explanations, and so forth. Because of this reason, even non-working or jobless people can apply and benefit an advance against gold.
No need of Extensive Documentation: Unlike different sorts of unsecured credits, a loan against gold does not expect you to provide detailed documentation for the application. You might be approached to give extensive documentation for verification of identity and evidence of living arrangement to get a gold loan.
Comparatively Lower Interest Rates: One of the most imperative favorable reasons to take a gold loan is the lower loan rate it is accessible at. While different kinds of loans such as personal loans are normally available at interest rate going between 15% - 26% whereas for a gold loan you can get a much lower interest rate (11%-16%).
One of the simplest ways: When it comes to availing a gold loan then it’s much easier than taking a personal loan and the minimal documentation option will fascinate you for sure. There’s no complicated process, you just need to take your gold to the bankers or lender, where the professional will go through the current market value of your gold and they will sanction you a loan.
Options of repayment: If you have taken a loan against gold then you will see the flexible repayment terms from the banks and lenders. Being a borrower, the bank permits you to pay only interest during the whole term and when you come close to the tenure or ending dates of loan completion then you can pay the full borrowed amount at once.
Easy processing and instant disbursal: If we talk about other loans then they are usually time-consuming with piles of formalities but in the case of a gold loan, the process is totally different. A gold Loan will let you enjoy the quick loan process and loan disbursal. In most of the cases, moneylenders and banks will give approval and disburse the loan without taking long hours, once the valuation team properly checks the market value of your gold, the loan will be sanctioned to you within few minutes. Gold Loan is the best recommendation if you want instant cash.