Following are the Advantages of Gold Loan
- Advantages of Gold loan provide no income and salary criteria- Gold loans do not require any documentation or validation for the income or salary of the person. So even if you are unemployed and unsalaried you can still avail of a gold loan. This is because you are pledging a valuable asset i.e. gold in return for the money.
- Another Advantage of Gold Loan Can be provided in cases of bad credit history as well as low-income level.
- Relatively Lower interest rates- Another advantage of the gold loan is that they are available at low-interest rates, say 12-16% annually in comparison to the personal loans interest rates of 15-26% per annum.
- You need to refund only the interest- You have the choice to pay only the interest during the tenure of the entire gold loan and at the end of tenure, you can pay the whole borrowed amount in a single shot.
- Most Satisfied Loan- The most satisfied of all the loans is a gold loan. This is because in this all you have to do is pledge your gold with a bank or a private finance institute or foundation and the work is done. You can avail of a loan up to 80% or more of its market value immediately.
- Less processing time- No tedious and time-consuming documentation is required in case of gold loans, hence it can be utilized in times of urgent needs. Banks take a few hours in the gold loan processing whereas some NBFC’s state that they only take a few minutes for the same task.
These above mentioned are the advantages of Gold Loan which provide benefits to Gold loan applicants. The advantages of gold loans make the Gold loan more convenient and the best option for raising finance.