Almost every Indian considered Gold as a prime asset because of its monetary value. It has seen good amount of capital appreciation over the decade and one can easily monetize it at the time of emergency. That's why most of the people go for gold loan other than any other loan.
Let's see the advantages of gold loan:
1) Lower interest rate: The rate of interest is lesser for gold loan as compared to other loans because it is secured loan. The interest rates are generally in the range of 11-16 percent.
2) Quick disbursement: Loan against gold is safer for banker as well as for borrower. Because gold loan is backed by gold, it is the easiest and the quickest option available.
3) No income proof required: As borrower is giving gold as security, lenders don't require income proof. So, any person who is above 21 years of age can easily get gold loan.
4) Less Documentation: Unlike personal loan or home loan, the gold loan doesn't require too many documents. Only two documents are required. One is identity proof and other is local address proof.
5) No credit check: One can easily avail gold loan from any financial institution, irrespective of credit history. The lenders don't check the credit history because the gold is used as security.
6) Less processing fees: Processing fees for gold loan is varies in the range of 0.5-1 percent. In some cases, banks don't even charge it.
7) No hidden charges: Apart from late payment, foreclosure and processing charges, there are no any other charges.
8) Gold Safety: Your precious asset will be safe in bank's locker. Your gold will get insured as soon as you pledge it. So, there is no need to worry about it.
Therefore, for immediate financial help gold loan is the best option. To know more about gold loan, just give a missed call on 1800 313 1060 or click here.