Why are Gold Loans Good for Emergency?

Gold Loans

Indians have always had a high aspirational value for gold. In addition to being a good investment option, gold is also useful when you need a loan in times of need. Keep reading to learn how.

Since time immemorial, gold has been seen as a mark of prosperity in Indian households. The country’s people are very attached to their gold jewelry. In an emergency or sudden shortage of funds, many people consider gold to provide collateral for taking out a loan. Money becomes a necessity in such circumstances. From personal and auto loans to credit cards, there are many options available to you. However, an emergency gold loan interest rate calculatoronline may be a better option depending on your situation. One such option is an online gold loan. Unlike traditional loans, they require less documentation, are quick, and can be applied for anywhere.

In many cases, a gold loan is a better option than a personal loan because it is processed quickly and requires minimal documentation.

It is not uncommon for lenders not to ask for proof of income or credit bureau scores. Gold loans are a primary focus of some non-banking financial companies (NBFCs), and such lenders offer higher valuations (higher gold loan per gram). If you want a high loan amount, you should work with an NBFC. Banks typically offer more competitive interest rates on gold loans if you are rate-sensitive.

As a result of the following reasons, you should consider taking out a gold loan to support your finances in the event of an emergency or urgent financial need.

1. Funds are disbursed immediately

The gold loan has the advantage of providing instant funds whenever an emergency arises. The Gold Loan is quick to disburse and offers the best option for meeting your financial needs, whether they are for education, medical expenses, or business expansion.

2. Low-interest rates

Gold loans have the first and foremost advantage of being secured loans. Your gold secures them.

3. Increased Loan Amount

Gold securities can be used to borrow a significant amount of money. Several banks offer loans against gold jewelry ranging from a minimum of Rs.10,000 to a maximum of Rs 1 crore. Once you enter details like loan tenure (in months), the number of gold ornaments, the weight of the gold, and carat details, the Jewel Loan Eligibility Calculator will give you the estimated eligible loan amount.

4. Flexible payment plans

In terms of repayment options, gold loans are the most flexible of all secured loans. There are a variety of loan repayment options available to the borrower.

  • EMIs are not required. The loan is paid off in one hit.
  • Pay a part of the principal amount and interest each month.
  • An overdraft facility is available. Withdraw as and when necessary. An interest charge will only be applied to withdrawals. After the tenure expires, pay the principal and pay the interest.
  • Payment flexibility. Options for flexible repayment without foreclosure charges.
  • There are financial implications to each repayment option. It is up to you to decide which option you prefer after considering all the options.

5. Simple Criteria for Eligibility

  • Due to the relative recklessness of gold loans for the lenders.
  • Anyone with gold ornaments can obtain loans.
  • The borrower’s credit score does not play a significant role in the loan decision.
  • There is no consideration of the borrower’s income or employment status.

6. Loan processing that is fast, safe, and easy

There is no complicated documentation process for gold loans. An officer at the lender’s office will evaluate your gold and approve your loan, so you can walk into the office, submit KYC, and walk out.

For faster loan processing, apply online through the lender’s website and follow the instructions.

It is time you realized and unleashed the value of your gold ornaments. A family gold reserve kept inside a locker serves no practical purpose. However, the gold in the locker can save you in times of need. After paying back the loan amount, you can go back and redeem your gold loan emi calculator and Gold once you have passed your emergency.

Final Words

Medical emergencies, weddings, or sudden vacation plans can result in financial emergencies. There are advantages and disadvantages to both personal loans and gold loans. Choose the right loan to tide you over based on what is convenient for you. The gold loan is a better option if you are unemployed, as it does not check your credit score and income proof since it is a secured loan. Since a personal loan is an unsecured loan, the lender will check one’s credit score to determine creditworthiness.

However, if you need a gold loan from a trusted and Reliable company, Rupeek is a great option. You can get a Gold Loan at a minimal interest rate with their services. Also, taking a gold loan is very simple and hassle-free.