Are you suffering from cash crunch but need immediate funds to meet your financial emergencies? Taking a loan can be an ideal solution to get through this crisis.
Nevertheless, sometimes availing for a loan and getting the financial support in time can be quite challenging due to the endless terms and conditions you are supposed to meet for the purpose.
But the good news is that gold finance is a better option during such financial crisis.
Here are the six reasons that tell you why applying for gold loan is the best Watch out!
Authentic funding sources
People often become sceptical when they have to keep gold as an asset for availing a loan. They doubt whether they would retrieve their gold asset back after they have made full payment and opted for final settlement.
Let us tell you, gold finance has become a very lucrative option for esteemed financing companies and banking institutions in countries like India.
The first reason for this is, there is a considerable volume of gold in average households in the country. Secondly, the World Gold Council has declared a voluminous quantity of gold sits idle in the country.
These two facts regarding gold assets have influenced prominent organizations to provide a gold financing facility for the customers.
You needn’t worry about the security of the gold asset when you apply for gold loan.
1. Hassle-free processing
Most of the times, the endless documentation processes connected with loan application demotivate people and deter them from taking loans.
But taking a gold loan is vastly different from any other type of loan. Your financing organization will not ask you to submit a vast volume of documents for considering you eligible for the loan.
You only need a document that serves as your proof of address and another one that authenticates your identity.
2. Low-interest rates and processing charges
Customers hate to pay high processing charges. The loan they take is because the cumulative amount of the principle and the interest becomes too high.
When the situation is beyond control, customers become forced to take loans at high-interest rates to meet their financial emergencies. A loan processing fee is also levied on that to make matters worse for the customers.
But if you compare this with goal loan and use a gold loan interest rate calculator, the results will be astonishing. You will find a very nominal processing fee on the loan amount you take against your gold asset. The processing charges for a gold loan are equally low.
3. No charge foreclosure option
The customer is supposed to pay interest if he wants to foreclose a loan and opt for final settlement.
But you can altogether avoid this hassle and foreclose your loan when you go for gold finance. So, you can remain assured that no penalties will be charged against your gold loan when you opt for pre-payment.
However, it has to be simultaneously remembered that customers can only opt for foreclosure of their gold loan after a specified period mentioned by their financing institution.
4. Flexibility in repayment option
There is great flexibility in the repayment option when you apply for gold loan. On average, the repayment tenure ranges from six months to two years.
Nevertheless, the tenure might vary across different financing institutions. Therefore, it is always best to inquire on this with the specific financing institution you selected for getting a gold loan.
5. Custom made a loan repayment
Have you ever heard something called custom made loan repayment? It is what happens in the gold financing facility.
For instance, you can pay the gold loan principle you have taken at the end of the repayment tenure and make an upfront payment for the interest only.
Again, as typical with the general types of loans, you can pay the interest and the principle together as monthly or quarterly EMI.
You can even choose the option to pay the gold finance principle at the earliest and the interest after a particular time.
So, when you take the gold loan, you have the freedom to decide how you will plan your loan repayment option.