The Covid-19 pandemic caused a huge disruption in India’s economy. Many individuals lost their jobs or faced pay cuts; businesses suffered huge losses, with some of them even shutting down due to capital crunch.
People or businesses who survived the tide are now staring at an uncertain future. They have exhausted all their surplus capital and are now searching for other sources of funds to take care of various day-to-day needs as well as to cater to various emergencies.
Some options businesses/individuals can explore to borrow money are:
Unsecured loans comprise borrowing funds without any collateral. While it’s an excellent way to get immediate cash without pledging any assets, not everyone is eligible to get a loan of this kind. Furthermore, the interest on these loans is quite high.
Secured loans refer to borrowing money by pledging against collateral. While an individual can take these loans against their home, equity stocks, FD, the most stable and preferred option is a loan against gold.
Rather than selling gold to make up for needs, one should take a loan against it to address the current economic situation. Before we explore the benefits of a gold loan, let us first understand what it is and how it’s better than selling actual gold.
A gold loan is a secured loan provided by financial institutions where the gold owner pledges the precious metal to get a certain amount against their market value.
By taking a loan against gold, you do not lose ownership of your prized possession. Once the loan amount is paid in full, you get the gold articles back from the lender’s custody. This becomes more relevant when you pledge a family heirloom or jewelry gifted by loved ones.
Selling these artifacts is not only an emotional loss, but even a financial one (as one gets an amount equivalent to gold’s value and not making charges).
By taking a gold loan, you can address your short-term monetary needs conveniently and gain full ownership of your possession whenever your financial situation improves.
Selling gold is a difficult process. You need to find a reliable buyer who is willing to pay the appropriate price. The transaction might take weeks to finish off.
On the other hand, getting a gold loan is a simple process. Companies such as indiagold provide gold loans at your doorstep. Once a gold loan request is raised, a loan manager visits your place with equipment to check the weight and purity of gold.
Based on the evaluations and appraisal, an approval request is generated. Once approved, the loan amount is transferred to your bank account within 30 minutes. The loan manager takes the pledged gold articles once the amount is received.
One of the major benefits of a gold loan is that credit received against the pledged asset is with a high loan to value ratio. This offers financial freedom to users, as they can now use the high loan amount received to pay various other pending expenses.
Gold loans do not involve heavy documentation, as compared to other types of loans. You just need to provide KYC documents to complete the registration process and apply for a gold loan.
Interest charged against gold is on the lower side as compared to other secured/unsecured loans. This makes it an affordable option as compared to selling gold or taking different kinds of debt. Even repaying the loan amount can be done conveniently. Through indiagold, users can either pay only the interest every month or can make ad-hoc part payments to reduce the overall amount owed. Once closure payment is made, the gold is released back to users.
While selling your gold could be your last resort, even pledging it could give you sleepless nights worrying about its security. To tackle these concerns, indiagold offers a robust security system, ensuring the gold retrieved from your place is deposited in a secured locker while being kept in a GPS traceable bag.
Additionally, an insurance policy is provided for the gold items to ensure financial security.
Gold is always considered a stable investment. It not only appreciates over time, but one can sell it easily in dire needs. Indian households have been investing in gold for centuries in the form of bullions, jewelry, coins, etc., with a hope that their investment rises manifold in years to come. But often, due to unstable financial conditions, liquidity crunch, or other requirements, one sells their prized possession to take care of immediate needs.
Thanks to gold loans offered by indiagold, one can now get instant financial relief even while maintaining ownership over their gold. We are market leaders in offering gold loans at affordable interest rates at your doorstep with flexibility over payment options. We are operational in all the major metropolitan cities, with expansion planned for tier-2 and tier-3 towns as well.
Our secure lockers ensure that the gold pledged is stored safely in a state-of-the-art system, monitored round the clock. If you are worried about your gold investment or ornaments at home, then consider keeping them in our secure vaults for safety and convenience.
Gold has been one of the most preferred investments of Indians. If you want to invest in gold but don’t want the hassle of physically owning it, consider investing in digital gold. They offer the same price appreciation as real gold without the trouble of safeguarding them.
The gold market in India is rapidly changing, and none has been the pioneer of this revolution than indiagold. Whether you want to get a quick gold loan, secure your physical gold, or invest in digital gold, indiagold is a one-stop solution for all your gold-related queries. Visit indiagold to understand more about the features being offered and the problem we can solve.