Indians are emotionally attached to gold. We are widely known for our love for gold. India is the largest importer of gold in the world. It is a source of raising capital for the future. Gold can be easily converted into funds to fulfill financial requirements like education, medical expenses, wedding, business expansion, holidays, etc. You can fulfill any time of financial requirement with the help of a gold loan. Many banks and Non-banking Financial Companies offer gold loans. Gold loans are very handy and can be easily availed when there is a need of instant liquidity. It is the best solution to fulfill your needs among various forms of loans available in the market. Nowadays you can easily apply online for a gold loan and repayment can also be done online. We will take a look at why availing gold loan is best choice.
Comparatively Low Rate of Interest:
One of the biggest advantages of a gold loan is a low rate of interest. The reason for the low rate of interest is that it is against the mortgage of gold. There are so many providers of the gold loan in Delhi who charge very low-interest rates.
In the case of a personal loan, there is a need of income tax proof, CIBIL score, tax return, etc which is a time-consuming process. Since a gold loan is against collateral there is no requirements for such documents.
Banks and NBFCs easily provide a gold loan with minimum documentation because you give your physical gold as collateral. In case the borrower defaults in repayment of the loan amount lender can easily sell the gold in the market. So it is a safer option for the lenders and they disburse loans within hours.
No Credit Score Required:
There is no need of a three-digit number ranging from 300 to 800. To qualify for a personal loan and another unsecured loan, you must have a good credit score. In the case of gold loans lenders rely on the repayment of loans because gold is used as collateral.
Security of gold:
Gold is kept safely in the locker. The complete responsibility of the safety is that of the lender. There is no need to worry about the safety of gold. After the repayment of the loan, gold is returned to the borrower.
Attractive Repayment Options:
You will get flexible repayment options. You can select the loan tenure as per your convenience. You can pay the interest amount as EMI and principal at the end of your tenure.
No Processing Fees:
There are many lenders of gold loan in Uttam Nagar, Delhi who don’t charge any processing fees because gold loans are instantly processed.
Gold loan is the most popular option for raising funds. It is very easy to get. You just have to make a repayment of the loan on time. Now we can say that gold loan has numerous advantages. Before taking a gold loan you should do proper research.