Gold is one of the most valuable assets in existence, and it’s also a very long-term investment with intrinsic value. Gold lending has become hugely popular in India , as a means to satisfy debt, or as an investment – but both can be done safely and productively. The Muthoot gold price is always increasing, and lenders are most likely to have the trust factor in lending a desirable amount against the pledged gold.
1. SIMPLE APPLICATION:
You will be able to apply for a gold loan from the NBFC such as Muthoot FinCorp. You don’t need to carry a packet of documents, nor do you have to give them all at once. A lender can easily process the gold loan as soon as you present essential documents like PAN card, address proof, etc.
2. QUICK LOAN DISBURSAL:
The gold loan disbursement process is quick and efficient, especially for people who want to get rid of their gold bars. Although this option is more expensive than traditional banks, it saves you time and money.
3. NO REQUIREMENT OF CREDIT SCORE:
Low-credit score borrowers can apply for a gold investment without worry because the gold pledge by the borrower already secures the amount. The risk factor associated with the loan repayment for the lender is significantly less than for other loan instruments, such as bonds and stocks.
4. LOWER INTEREST RATES:
Interest rates on gold loans are relatively lower. The banks/NBFCs have gold as collateral and can use it to recover failed loan repayments. Therefore, financial institutions and NBFCs generally charge lower interest rates in order to attract more clients and borrowers.
5. FLEXIBLE USAGE:
If you have an opportunity to get a gold loan, you should take it. Although the lender will expect collateral on the loan, the gold can be used for any purpose to which you need it. Once you receive the gold or walk away with a payment in cash, the debt is paid off.
6. FLEXIBLE REPAYMENT OPTIONS:
Gold investment provides an opportunity to the borrowers who want to repay the loan amount on time. Once the loan term expires, they can repay the principal amount or choose their preferred repayment scheme which suits them. The repayment options provided by gold investment are flexible and make it an ideal choice for those looking towards a better future.
7. GOLD STORAGE SAFETY:
Gold is a trusted asset because of its scarcity and durability. If your finances allow it, you may consider pledging your gold to secure a loan. This form of gold lending helps you reduce the risk associated with selling or converting your jewelry or coins, which would otherwise have to be liquidated at market prices. The lender maintains the gold security to keep the gold safe. In case of any loss or theft, the lender has to reimburse the full value of the gold to the borrower.
8. NO PROOF OF INCOME REQUIRED:
A gold loan is an informal short-term credit facility offered by banks, cooperatives and other lenders to bullion and jewellery merchants for purchasing the precious metal. In return for the gold purchased from them, the lenders have to receive some interest on their loan amount while they sell off their produce in order to pay off the loan.
9. EASY ELIGIBILITY CRITERIA:
With the help of us, you will be able to get a gold loan from anywhere in your country. No need to worry about your credit score or SAVINGS. No collateral needed. Interest rates are low and transparent for all.
10. MINIMAL CHARGES:
The processing fee varies from bank to bank. Banks charge minimal or absolutely no processing fees for a gold loan. There are no foreclosure charges involved either. This means the borrower can repay the loan without incurring any extra charges.
A gold loan is a type of unsecured personal loan that you may be able to get from your friends and family or even the bank. This can be a great option when you need money fast, but do not want to pay extremely high interest rates.
