10 Ways How Gold Loan Proves as Best Option for all Financial Needs

There is hardly a household in India that does not make investments in gold. Whether in the form of ornament or bullion, each household invests in some form of gold. It benefits you by offering a secure avenue to put your savings. Moreover, a gold loan is a highly liquid form of investing money.

Let us look through the top 10 ways a gold loan proves to be the best choice for all your monetary requirements.

A simplified process of application

To apply for a gold loan, you need to follow a simple procedure without lengthy documentation. However, you have to bring your basic KYC papers, which include ID and address proof. Further, submit these papers to the financial institution by physically visiting the place or through their online portal. You will fill-up the form and submit/upload it along with the xerox copy of KYC documents.

Faster disbursal

Applicants get their gold loan amount within a day only. When you opt for a loan for gold, your loaner will proceed with the evaluation process of your gold asset. Usually, 70-75% of the current market worth of the gold asset is offered. Once you sign the disbursal form, the lender will instantly start the other process.

Can be availed with a low credit score

You can apply for a gold loan even when you do not have a good credit score. Gold assets act as collateral. Hence the lender becomes free from the risk of losing money. Thus, you do not have to worry about having poor credit.

Ideal for a financial emergency

Among other urgent loans, gold loans are one of the best options if you need quick money. With gold loans, you can get amounts up to 1 crore.

No restrictions on usage

Despite being a secured loan, it lets borrowers use the amount for any emergency. This could be medical, educational, business or other needs.

Desirable interest rates

As these loans are protected against collateral, you get the benefit of lower interest rates. Generally, the gold loan interest rate ranges from 12 to 14 % per year.

Flexible repayment options

One of the biggest advantages you get when you apply for a gold loan is repayment flexibility. Further, you are not burdened with paying EMIs. Instead, you get the option to repay the interest amount depending on your current financial condition during the tenor.

You are free to pay only the interest amount every month and later pay the principal amount at the end of the tenor.

Option of tenor extension

With gold loans, you can get an extended tenor of up to 30 months. This way, you can freely plan your repayment strategy once you fulfill your urgent financial need. Be better if you pay the loan amount early to get a lower interest rate.

Robust protection to your Gold asset

When you apply for a gold loan, you put your valuable asset for your service. The financial institutions and lenders are liable to protect your items. Moreover, your lender will offer insurance to protect your assets in case of theft or loss. And you will have the right to receive a full amount equivalent to your asset’s value.

Minimal and affordable processing fee

The processing involved in the approval of a loan on gold comes at an affordable price. The banks and other financial institutions charge only a small amount of money to carry out the process. Apart from this, borrowers also enjoy the benefit of not paying foreclosure charges. Hence, you can comfortably repay your loan amount with interest without having to pay an additional fee.

Conclusion

With numerous advantages on the line, leveraging a gold loan is the best choice to meet your immediate monetary needs. You get financial flexibility the way you want without causing any negative impact on your finances.

Check out the offers on a personal loan, home loan and credit cards at the official website of Bajaj Finserv. The company is allowing you to leverage their pre-approved offers on financial products. You have to fill out the online form to avail them.

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