We all are living in a country where the love for gold among the people is immense. India is one of the biggest importers of gold in the world. Even gold has a significant value and has a great source of potential capital appreciation for the future. You never know when there is a need for financial resources, so Gold is something that will always help you to get through the uncertain situation and brings great finances.
Nowadays you will easily find many financial institutes and non-financial institutes are coming up with the facility of the gold loan in the market. Whenever you require a quick financial resource, you can easily get a loan against gold. There are many benefits of getting a gold loan. Let’s have a look at them.
- Quick processing: Since in the gold loan, physical gold is given as the collateral security to the lender, the processing of the gold loan is quite quick. Lending a loan against gold is always a very easy way for banks and non-financial institutes as the risk is very less in this loan. It will just take a few hours to complete the processing and you will get a loan against gold.
- Pay interest only: Gold loans are offering a great feature in which they allow the borrower to only pay the interest component while repaying the loan. The main principal component can be paid off at the end of the gold loan tenure. This gives the person ample time to give back the amount of loan taken against gold.
- Low-interest rate: Gold loans are made available by all the enders at very low-interest rates. The interest rate on the golf is much less than the unsecured personal loan. The gold loan interest rate might fall between 13% to 14% whereas the personal loan interest rate starts from 15%. If you are in immediate need of money, going for a gold loan will be the best way to meet your financial requirement.
- Zero processing fees: Most banks have processing fees for the different types of loans available in the market. But when the talk comes about the gold loan, there is no such need for processing fees as the gold is kept as collateral with the bank.
- No need for income proof: Most loans are only granted to the person when he/she provides their income proof to the lenders. But in the gold loan, there are no such formalities. Since it is a secured loan against gold so there is no need for any income statements from the borrowers.
- No impact on credit history: When getting a gold loan, the person’s credit history is not checked. So there is no scope of getting any wrong impact of poor credit history on the loan processing.
If you want to raise immediate financial funds, just opt for the gold loan services. Nowadays in the market, you will easily get a gold loan per gram which makes it even more convenient for people to get a gold loan.