Loans are necessary financial tools which can be used by people in times of emergency or need. A gold loan is a specialized type of loan which is provided by the lender against the gold assets that you have. The terms and conditions for such a loan differ from one lender to the next.
Gold loans are beneficial under a number of circumstances. Here is a look at some of the conditions under which a gold loan can be quite advantageous and beneficial.
1. Instant fund requirement
When you apply for a loan, you would ordinarily need to wait for a few days before the money is sanctioned. However, it takes no time for a gold loan to get sanctioned. You would just need to visit the lender with the gold that you want to keep as collateral. The lender will then calculate the value of the gold and sanction a loan accordingly.
2. Fast loan repayment
You may need some emergency money at some point or the other. In such a case, a gold loan is the perfect solution. You can take the loan for the time being and repay it within a year or two, since the loan repayment for the gold loan typically has a tenure ranging from 6 months to 2 years. Furthermore, repaying the loan early means that you would need to pay a very limited amount of interest on the borrowed sum.
3. Very small loan needed
Most other kinds of loans have a minimum limit when it comes to the amount of money that is to be lent out. These limits are generally above a few lakhs. However, you may not need that much money to meet your requirements. In such a case, a gold loan is the perfect option for you. The gold loan amount is decided on the value of the gold which you deposit to the lender as collateral. So, in a way, you are deciding the amount of loan that you want.
So, with a gold loan in India, you can borrow as little as a few thousand rupees from the lender, if that is all that you require at the moment.
4. Freedom of usage of loan
Lastly, if you want the loan for something that you do not want to disclose to the lender, you have two options. Under such a circumstance, you can either opt for a personal loan or a gold loan in India. However, the interest charged for a gold loan is much lesser and is therefore the much better option for you.
Thus, a gold loan is a much more flexible option for a person in need of emergency funds or someone who needs only a small amount of money as loan.
Gold loans are beneficial under a number of circumstances. Here is a look at some of the conditions under which a gold loan can be quite advantageous and beneficial.
1. Instant fund requirement
When you apply for a loan, you would ordinarily need to wait for a few days before the money is sanctioned. However, it takes no time for a gold loan to get sanctioned. You would just need to visit the lender with the gold that you want to keep as collateral. The lender will then calculate the value of the gold and sanction a loan accordingly.
2. Fast loan repayment
You may need some emergency money at some point or the other. In such a case, a gold loan is the perfect solution. You can take the loan for the time being and repay it within a year or two, since the loan repayment for the gold loan typically has a tenure ranging from 6 months to 2 years. Furthermore, repaying the loan early means that you would need to pay a very limited amount of interest on the borrowed sum.
3. Very small loan needed
Most other kinds of loans have a minimum limit when it comes to the amount of money that is to be lent out. These limits are generally above a few lakhs. However, you may not need that much money to meet your requirements. In such a case, a gold loan is the perfect option for you. The gold loan amount is decided on the value of the gold which you deposit to the lender as collateral. So, in a way, you are deciding the amount of loan that you want.
So, with a gold loan in India, you can borrow as little as a few thousand rupees from the lender, if that is all that you require at the moment.
4. Freedom of usage of loan
Lastly, if you want the loan for something that you do not want to disclose to the lender, you have two options. Under such a circumstance, you can either opt for a personal loan or a gold loan in India. However, the interest charged for a gold loan is much lesser and is therefore the much better option for you.
Thus, a gold loan is a much more flexible option for a person in need of emergency funds or someone who needs only a small amount of money as loan.
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