You can be caught off guard by a financial emergency, especially during an economic recession. Layoffs and consecutive salary cuts make it difficult for many to save significantly for a contingency fund. Gold jewelry can be pledged as collateral to secure instant cash loans online in such circumstances. Due to the flexibility of gold loans while repaying, anyone can use them to meet their needs at the lowest gold loan interest rate.
How do Instant Gold Loans benefit you?
The following are six ways you can use a gold-backed loan:
- Medical emergencies and financing
- Meeting home remodeling costs
- Providing funding for education
- Gadgets and appliances for purchase
- Start-ups and expansions of businesses
- Expenses associated with weddings
Are Gold Jewelry Instant Loans Available to Everyone?
Due to the relaxed eligibility requirements of gold-backed loans, they are a suitable funding option for most borrowers. Collaterals have a high value, which reduces the lender’s risk. As a result, financial institutions are less strict about a candidate’s financial status.
Qualifying for this product requires the following criteria:
- Applicants must be over the age of 18.
- Collateral: A sufficient amount of gold must be possessed to access the funds required. Jewelry items are the only items that qualify. Gold bars and coins cannot be pledged as collateral.
The flexibility of gold loans makes them ideal for people seeking instant cash loans in India without a credit check. Consequently, applicants with a poor credit history can still qualify by simply meeting the above requirements.
Additionally, gold loans require little paperwork. To prove their eligibility, applicants only need to submit KYC documents. These loans are ideal for emergencies because of the quick documentation process that allows them to be approved and disbursed faster.
What Are the Benefits of a Gold Loan?
A gold loan comes with several notable benefits that borrowers can take advantage of. Here are some of them.
Sizeable loans
Loan-to-value (LTV) ratios allow borrowers to borrow up to 80% of the value of their collateral. The maximum loan amount available to borrowers is Rs.1.5 crore, sufficient to cover most financial needs. A Gold loan calculator can also help you figure out the total amount you can borrow by pledging your gold jewelry. A gold loan calculator is a virtual calculation tool that helps you to calculate the rate of interest and EMI on the gold that you are pledging, beforehand so that you can plan your repayment accordingly.
Flexible repayment options
Gold loan services offer a flexible repayment structure suitable for individuals with varying financial circumstances. The borrower may also choose to repay any amount within the tenure at any time according to their convenience and the conventional EMI mode. Bullet payments are also available.
Loan terms are flexible
A gold-backed loan can be an excellent option for individuals seeking short-term funding since the repayment period is short. The repayment window can be extended up to 12 months, which can be extended for six months. A quick loan term also reduces the total gold loan interest rate outgo. Thus, gold loans become an affordable funding option by bringing down the borrowing cost.
A low rate of interest
A gold-backed loan from a bank is available at a low-interest rate starting at 0.49% per month. Each individual can choose a suitable plan for their financial situation and requirements.
Charges for prepayment or foreclosure are nil
Several lenders allow borrowers to make part or full prepayments of their outstanding amount without incurring any additional fees. Banks, too, allow borrowers to close loans before the expiration of their tenure without paying foreclosure fees.
Education funding
Furthermore, gold ornaments can also be sold to raise funds for higher education. Even though there are various financial products designed specifically for students, they have extensive requirements.
Only specific courses are eligible for student loans at selected institutions. To qualify for a student loan, they must also provide a letter of acceptance and proof of their educational qualifications.
Gold lenders do not require these documents. The loan can finance expenses, such as tuition fees, accommodation charges, and admission costs.
Establishing or expanding a business
Obtaining sufficient funds to establish a strong foundation for their business is a common obstacle for new and small businesses. This is because most financial institutions assess these borrowers’ creditworthiness based on their business vintage and turnover.
Start-ups and MSMEs often cannot access such financing because they lack both. Due to its relaxed eligibility requirements, gold-backed loans can be an excellent solution for entrepreneurs.
Conclusion
Providers of gold loans do not mandate such requirements. It is convenient for individuals to access funds to finance expenses, such as tuition fees, room and board, etc. Hence, gold loans have helped many people expand their businesses, fulfill their needs, and accommodate in the emergency period because gold loans are one of the reliable sources of getting money. Although if you are also looking for a genuine loan provider company, then Rupeek is the best option for you as they provide the best gold loan interest rates and flexible repayment options.
