3 Advantages of Availing of a Gold Loan

Gold loans are short-term borrowing that might vary from one month to a few years in terms of repayment. You can calculate your rate of interest in a gold loan interest calculator offered by banks and NBFC on their website. If you need money in the short term to meet urgent expenses, this form of credit can be a smart option.

Now let’s check out the 3 advantages of opting for a gold loan.

Lower Interest Rates

In general, interest rates on gold loans are lower than personal loans as this is a relatively low-risk loan for creditors holding gold of customers as collateral. The rate of interest also fluctuates according to how much of the amount of gold’s value you have agreed to borrow. When the amount of the loan is not more than 50–60% of the entire value of the pledged gold, the interest rates are lower. However, the interest rate will be proportionately greater if the amount borrowed is high compared with the value of the gold.

Quick Process

In India, gold loans are the fastest credits to be approved as banks and NBFCs are secured by your gold which as a result, eliminates any need for checking the credit history. In a matter of minutes, the loan is approved and disbursed. Many lenders can swiftly evaluate your gold and approve the loan instantly after checking its purity and quality.

No Proof of Income is Necessary

In many circumstances, your gold is retained as a security by the lender and therefore you are not even asked to present a salary certificate. So, even if you are not working somewhere or have a decent credit score, you are still eligible to avail of a gold loan. All you need to have is ID and address proof and gold to pledge.

With several reputed banks and NBFCs, availing of a gold loan is not a hassle anymore.