Here’s What You Need to Know about Gold Loans!

A fairly common practice in India, borrowing money against gold jewellery is something that the country has been witnessing for decades. The money disbursed can be used for various purposes like for business, medical, or any other financial needs. A gold loan is one of the easiest ways of availing urgent funds. Today, with top-notch brands offering gold loans at better and lower interest rates, it has become much more convenient to get a loan against your gold jewellery. However, a lot of people are still unaware of the benefits of availing a gold loan.

Gold Loan: An Overview

First things first, it is important to know what a gold loan exactly means. To give you a brief overview, a gold loan is a type of loan that you can avail by pledging your gold jewellery as collateral. The bank or lender with whom you pledge the gold will lend you the required loan amount after evaluating your gold. Based on the market value of your gold, the loan amount will be transferred to your account. To make it easier for customers, some gold loan lenders offer a gold loan calculator on their websites, using which the borrower can evaluate the estimated value of their gold beforehand. Once the amount is transferred, you need to repay the loan along with the interest for the tenure chosen by you. At the end of which, the pledged gold ornaments will be returned to you.

Benefits of Availing a Gold Loan

Gold loans have a set of benefits that are simply par excellence. One of the foremost benefits of availing a loan against your gold is the lower rate of interest you are able to avail. You will not have to pay too much extra over your sanctioned loan. Nowadays, gold loan calculation has become easier for borrowers as lenders offer online calculators. Other than this, most of the lenders offer zero processing fees and there are no other additional charges either. Availing a gold loan also involves faster processing than any other type of loan. The gold evaluation process is very simple, ensuring a quicker transfer of the loan amount.

In addition to this, your credit history is also not an issue when it comes to availing a gold loan. With this in mind, if you are planning to avail a gold loan to meet your urgent financial needs, you can do so without a second thought.

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