Why You Should Go Gold Loan for this Year

1. Introduction

• Brief overview of current financial needs and uncertainties: Overall finances and household savings have plummeted over the last couple of years due to factors such as inflation. These factors, coupled with the current geopolitical uncertainties means one should always have a way of raising funds to fuel everyday expenses, or even start a venture.

• The growing popularity of gold loans in recent times: In recent times, gold loans in India have gained massive popularity due to the unmatched customer convenience that gold loans have on offer, and a comparatively lower interest rate, making these loans highly cost-effective and easy to avail.

• Purpose of the article: The purpose of this article is to explore why you should opt for a gold loan this year, before considering other forms of lending like personal loans, business loans, etc.

2. What Is a Gold Loan?

• Simple explanation of a gold loan: A gold loan is a collateral-backed form of loan where the borrower pledges their gold asset to secure lending. Like any other loans, gold loans also attract interest and other applicable charges. Once the applicable charges, interest and the principal are repaid, the possession of the collateral is given back to the borrower.

• Who can opt for a gold loan? A gold loan is an exceptionally great way to avail a loan with minimal documents, at lightning speed, and in a cost-effective way. Anyone who owns eligible gold can avail a gold loan. Unlike other forms of loans, gold loans do not require a minimum credit score or income documents.

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3. Reasons to Choose Gold Loan This Year

• Rising gold value and its impact on loan amounts: Gold prices have risen substantially over the last couple of years, which, according to many experts, may or may not rise further. This is one of the reasons why choosing a gold loan this year may make sense since you may not be able to avail a loan at the current gold valuation in the future.

• Increasing demand for quick and hassle-free credit: India is expanding rapidly, and the demand for a sustainable form of credit is also increasing rapidly. This is where gold loans shine! Gold loans are an extremely cost-effective way to avail credit!

• Favourable lending policies and flexible repayment options: Gold loans offer favourable lending policies and flexible repayment options to the borrowers, which can essentially help bring down the default rates and help borrowers repay the loans with ease! Lenders like indiagold offer highly customer-centric gold loans!

4. Key Benefits of Taking a Gold Loan This Year

4.1 Quick Processing and Instant Disbursal

• Minimal documentation: Gold loans require minimal documentation, irrespective of the end-use of funds. The only documents that you may require to avail a gold is the basic KYC documents, and income documents (in some cases). This makes the overall process of availing a gold loan extremely quick and efficient, especially when compared to traditional lending products like personal or business loans.

• Faster approval compared to other loans: Since gold loans are backed by the borrower’s gold, the lender’s lending risk is minimal, which allows the lenders to assess and process the loans extremely quickly!

4.2 Lower Interest Rates

• Comparison with personal loans and credit cards: gold loans typically have a lower interest rates compered to the traditional lending products like personal loans and credit cards. Lenders like indiagold offers highly cost-effective gold loans, which makes availing a gold loan over other loans a clear choice!

• Cost-effectiveness: Apart from lower interest rates, gold loans, especially from reputed lenders like indiagold are highly cost-effective since these attract minimal additional charges like pre-payment charges, processing fees, etc.

4.3 No Impact of Credit Score

• Suitable for individuals with low or no credit history: Gold loans are backed by the borrower’s gold, which minimises the lender’s risk. This enables borrowers with low or even no credit score or profile to avail a gold loan. Which is not the case with traditional loans like personal or business loans.

4.4 Flexible Repayment Options

• Interest-only payments: Gold loans allow borrowers to make convenient repayments. Borrowers can choose only to pay the interest component every month and make the principal repayment at the end of the loan cycle.

• Bullet repayment and EMIs: Borrowers can also choose to make bullet repayments, and can also repay in EMI form.

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5. Who Should Consider a Gold Loan?

• Small business owners: Gold loans are perfect for small business owners who are embarking on their entrepreneurial journey. Gold loans can provide a much-needed capital injection and allow the entrepreneur to grow!

• Salaried individuals facing short-term cash needs: Salaried individuals can also benefit from gold loans. These loans can help overcome a short-term funds shortage.

• Farmers and self-employed individuals can also benefit greatly from gold loans. These provide quick funding, at low cost and with minimal barriers to entry!

• People with urgent financial requirements can benefit from gold loans, as these are readily available, easy to access, and have low barriers to entry.

6. Things to Keep in Mind Before Taking a Gold Loan

• Loan-to-value (LTV) ratio: The LTV ratio essentially means the maximum amount of loan one can avail in relation to the value of the said gold collateral. A high LTV ratio can help get a higher amount of a gold loan. Before finalising on a lender, compare the LTV ratio on offer to narrow down the options. Lenders like indiagold offers a high LTV ratio on their gold loan offering.

• Interest rate comparison: Interest rate comparison is essential. Doing so can help ensure that you are choosing the right lender, which can help save costs on interest payments.

• Tenure and repayment terms: Tenure and repayment terms are a great ground for comparison. These add to the customer experience and convenience, and comparing lenders on this basis is a great idea.

Take a Pre Approved Gold Loan

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You will receive a call from our Relationship Manager