There could arise a situation in life where you might need urgent money. At this point of time the gold loan might come to your rescue in coping up with such unexpected expenses. Because of financial constraints you cannot let go any investment opportunity.
The gold loan is a form of loan against any form of collateral security. Based on the gold pledged a certain percentage is given in the form of a loan. In fact most of the gold loan provider in Delhi operate on this simple module. As per the latest updates of RBI banks are offering 90% of the amount of loan. It is possible to pay the loan in instalments or you can close the loan by paying the full amount that is the principle. The moment you pay the full amount back you can take back the gold. Just like other type of loans like a car loan there is no specific reasons for you to use the gold loan. Even it is possible to fund your education or you can purchase an expensive gift for your friend. For sure it works out to be way to cope up with sudden expenses.
The benefits of a gold loan
- Timely and quick disbursement- once there is going to be minimum documentation the disbursement and processing is made in a fast and secure manner
- Secured- as it is a secured form of loan against a collateral , there is no longer the need to present any form of collateral to the lender or the borrower
- Interest rates on the lower side- When you compare a gold loan to any other type of loans the interest rate is on the lower side
- Income proof- the borrowers are not going to need any income proof once they go on to avail this loan
- Credit score- the credit score does not have any sort of bearing to avail this loan
The features of a gold loan
- Since the loan is secured the interest rate is on the lower side
- The process of applying for this loan is less and it is possible with minimum degree of documents
- It is possible to pay the loan by instalment and at the end pay along the entire principal amount as loan.
- Any individual who is eligible to apply for a gold loan could apply for the same
- If you avail a gold loan for agricultural purpose then the interest rate is going to be on the lower level.
To conclude the rates of the gold loan is going to vary from bank to bank. Though the interest rate is dependant upon a series of factors. For example if you already have a savings account with a bank the interest rate is going to be on the smaller side. Even the interest rates are going to be higher if the loan amount is on the higher side. Another major difference is the processing fees would be lesser with a gold loan.