Indians are well-known for their love for gold. India is one of the largest importers of gold in the world. Gold is believed to hold significant value , and is also a source of potential capital appreciation in the near future. But, few people know that gold can also be used to cover any urgent cash demands, like medical costs as well as children's education and business start-ups and even down payment on car purchase and even the annual holidays with family. If you're faced with a problem that needs cash urgently then you could make use of the gold stored in your bank locker. There are many banks today and non-banking financial companies (NBFCs) offer gold loans. These loans are very useful and can be accessed fast when you need an urgent cash requirement. You can get instant gold loan that you may own in any form such as jewelry, gold coins or gold bars. To discover additional information, you've to click here: https://www.augmont.com/gold-loan. These are some of the main benefits of borrowing against gold:Quick Processing - As gold loans have physical gold as collateral, banks as well as other lending institutions are able to provide these loans. For banks who lend against gold, it is an option that is more secure since they are able to easily trade the gold in the event that the borrower fails to pay. Therefore, banks are able to disburse such loans within the space of a few hours. This allows for faster processing, and thus greater convenience for the those who are borrowers. Pay Interest Only Option - Gold loans typically have a unique option which allows the borrower only pay interest when paying back the loan. The principal amount is due at the expiration of the loan or at the time of closing formalities for the loan. A lower interest rate compared to other loans Due to the fact that loan against goldX is a secured loan, banks charge a lower rate than loans with no collateral, like personal loans. Rates of interest on gold loans range between 13 and 14 percent. Personal loans interest rates typically range from 15% to 15 15%. For borrowers who can provide additional collateral to secure loans, gold loan rates are reduced by the bank. Zero Processing Fees Many banks and NBFCs do not charge processing fees for loans made in gold. The bank is the one that holds gold collateral in addition to the loan. Minimal Foreclosure Fees - Many lenders and banks don't charge prepayment fees for gold loans. There is no need to provide proof of income For the majority of loan applications, lenders do not ask for income proof from the borrower since the loan is secured by the gold pledged by the borrower. The impact of poor credit is not a factor. History - In most loans, banks grant amount of loans contingent on the repayment capability and the credit score of the borrower. However, this isn't the case for gold loans. Since gold is used as collateral for the loan, lenders are certain that the principal will be paid back and they aren't reliant on credit history. Security of Physical Gold - The responsibility of safely maintaining the physical gold is the responsibility of the lender. It is typically kept safe in the bank's vault , and consequently, the borrowers do not have to worry about it. After they have repaid the loan, the gold is returned to the bank. Conclusion While gold loans are easy to get, those who take them must ensure that they repay the loan in time. If this isn't possible, the gold could be forfeited to the bank. The disbursement process for a gold loan could be done by any gold loan firm that borrowers choose.
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