Can Online Gold Loans Cater Your Emergency Needs

1. Introduction

• Understanding financial emergencies: Financial emergencies can befall on anyone. These are often mentally and financially draining, especially for the ones who are underprepared or don’t have sufficient emergency funds to sail through such situations.

• The growing popularity of online gold loans: Online gold loans are growing in popularity at a lightning pace for all the right reasons! These loans offer a quick access to funds at an affordable rate of interest, with low barriers to application, while offering all these customer centric features at the tip of your fingertips!

• Purpose of the article and key question addressed: The purpose of this article is to provide insights on how gold loans can be an extremely helpful tool in an event of a financial emergency.

2. What Is an Online Gold Loan?

• Definition and basic concept: Gold loans are a type of asset backed loans where the borrowers pledge their gold as a collateral to the lenders in order to avail a loan. Once the loan is repaid in full including the principle, interest component, and any applicable charges, the gold collateral is released by the lender and the possession is given back to the borrower!

• How online gold loans work: Online gold loans are a great new convenient way to avail a gold loan. No more hassle of going to lenders to check eligibility. Now all can be done from the comfort of your home. All that the borrower needs to do is go to the lender’s website and apply for an online gold loan. The lender’s relationship manager will get in touch and help the borrower with the application, assessment, and the disbursal process.

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3. Why People Turn to Online Gold Loan for Emergency Needs

• Immediate cash requirements: Online gold loans are an amazing tool to access quick funds by collateralising your gold asset. These are gaining traction in the lending space due to the customer centric features and the ability to provide quick funding which is crucial in time of an emergency.

• Limited access to other credit options: Many people turn to gold loan if they have limited access to other credit options. Gold loans have less strict eligibility criteria. An individual’s credit score/history and income proof have minimal to no weghtage in the assessment, making gold loans a great way to avail funds for everyone!

• Using idle gold assets effectively: Gold loans are a great way to utilise idle gold assets to avail funds efficiently. One can avail funds to use towards productive measures from an otherwise idle asset.

4. How Online Gold Loan Works for Emergency Needs

• Fast application and approval process: Online gold loans provide borrowers the convenience of fast application and approval process. Lenders like indigold are so efficient with their online gold loan offering that the assessment and disbursal is often done in a matter of minutes. Making gold loans from indiagolf highly suitable for individuals with an urgent requirement of funds.

• Minimal documentation: Gold loans are asset backed loans. Hence, these require a minimal set of documents for the application. In most cases, the lenders only require the PAN and basic KYC documents for gold loans.

• Doorstep gold pickup and secure storage: Online gold loans offers doorstep golf pickup and secure storage of the collateral, making these highly reliable and convenient for the borrowers. As a matter of fact, indigold also insures the collateralised gold to further secure the gold and put the borrower’s mind at ease.

• Quick disbursal of funds: Gold loan application and assessment is quick, and so is the disbursal process. The loan disbursal for gold loans from indiagold is done in a matter of minutes!

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5. Key Benefits of Online Gold Loans

• Lower interest rates compared to personal loans: Gold loans offer a lower rate of interest compared to traditional loans such as personal loans. Which makes these a clear choice for cost conscious borrowers.

• Flexible repayment options: Gold loans offer flexible repayment options which is highly desirable for borrowers who’d like to repay conveniently.

• No impact of credit score (in many cases): Gold loan eligibility is not impacted by the borrower’s credit history or the current credit score. It is the gold collateral which determines the eligibility. This makes gold loans a perfect choice for people who do not have an ideal credit profile to avail loans.

• Transparent loan terms: Gold loans have less complicated loan terms, making these easy to understand and with comparatively lesser pitfalls for the borrower. Modern lenders like indiagold goes a step further as the relationship manager explains the loan terms in detail to the borrowers to avoid any confusion or future surprises.

6. When Is an Online Gold Loan the Right Choice?

• Medical emergencies: Gold loans are an amazing tool to avail funds, especially at events where time is of the essence. These can be extremely valuable at the times of medical emergencies as gold loans provide a quick and easy access to funds.

• Business cash flow gaps: Entrepreneurs can also leverage gold loans to fill the cash flow gap in their business. Gold loans are a sustainable way to get quick access to funds to ensure that the business operates smoothly even during times of cash shortage.

• Education or family-related expenses: Gold loans can be helpful to fund education or family-related expenses as these loans are comparatively inexpensive, have low barriers and offer flexible repayment options.

• Short-term financial needs: Short-term financial needs can also be fulfilled sustainably with the help of gold loans.

7. Things to Consider Before Applying

• Interest rates and processing fees: Interest rates and processing fees are direct expenses in case of lending products. It is crucial to consider these costs before making a decision or choosing a lender for a gold loan. Lenders like indiagold offer highly competitive interest rates.

• Loan-to-value (LTV) ratio: The LTV ratio dictates the maximum amount of loan that can be availed as a proportion of the market value of the collateral. A higher LTV ratio translates to a higher loan amount and vice versa. Comparing lenders on this parameter is a smart decision, especially for those who are looking for maximum loan amount.

• Credibility of the lender: Choosing a reliable lender is crucial. It is important to consider the lender’s goodwill in the lending space, and customer testimonials to ensure minimal hiccups during the loan lifecycle and that your gold is safe with the lender.

8. Tips to Use Online Gold Loans Responsibly

• Borrow only what you need: Responsible borrowing is crucial. It is prudent to always borrow the amount that you actually need. Over-borrowing often results in financial difficulties, and trouble in repayment for the borrower, often leading to loss of collateral due to default.

• Plan repayment in advance: Planning repayment in advance can be helpful as it helps avoiding missouts in repayment.

• Track due dates and charges: Keeping a track of deadlines can help repay efficiently, and avoid any delays. This can help save money which would be otherwise spent on delayed repayment charges, and risk missing a repayment. Tracking charges can also be helpful from a budgetary perspective.

Take a Pre Approved Gold Loan

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You will receive a call from our Relationship Manager