October 2, 2022
Gold loan

Gold loan

In times of financial crisis, what exactly do you look for? We believe it would probably be having the money in hand to address the situation which has arisen due to the financial crunch. Today, one of the easiest ways to get money is taking a loan, which is available on simple terms & conditions. Banks and NBFCs offer a particular loan for every situation from personal loans up to commercial vehicle loans and even agriculture financing. For instance, education loans are meant to help you complete higher studies; if you need help for buying a car, there are personal loans; or if you want to take a loan in case of any emergency, there is a credit card.

As the name suggests, collateral loans are taken against collateral. These are the necessities that a borrower’s property has to be pledged for the loan. If a borrower doesn’t repay his dues on time, his collateral is taken away from him. So, collateral loans are designed to give borrowers who don’t have any sort of credit history or adequate income an opportunity to get a personal loan or cash advance against their property.

An unsecured loan does not require collateral and is purely a personal loan. On the other hand, a secured loan is a loan that requires you to pledge an asset (or assets) as collateral against which the lender can recover its principal amount. A gold loan is one of these secured loans where you own an asset – gold in this case – that can be pledged as collateral for your personal loan. In some cases, interest payments may be tax deductible.

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Know what a Gold Loan is

Gold loan is becoming an increasingly popular option for those in need of fast cash. You don’t even have to sell your gold to avail this service. By availing a gold loan, you can save yourself from the hassles of marketing and selling your jewellery while still being able to use it as collateral.

Why should you prefer a Gold Loan? 

Here is the list of reasons that make applying for a Gold Loan a superior option: –

  1. Gold loans have become a very popular option for consumers in the past few years, due to their ease and convenience. A gold loan gives you access to cash when you need it most, by pledging your gold at a fraction of its market value. The money is delivered directly to your bank account, allowing you to use it right away.
  2. To get a Gold Loan, an intended borrower doesn’t need any proof of salary or income or a good CIBIL score. Everything can be done online and within 10 minutes, enabling you to use your ready cash for whatever reason you want.
  3. Obtaining a Gold Loan has never been easier. With the most basic gold loan documents like identity proof, address proof and signature proof along with passport size photographs, you can get your loan approved in a matter of hours. We make applying for loans easy by handling all the formalities so that you can have your loan at the earliest.”
  4. Gold Loan is a fast and secure way to get access to cash when you need it the most. This unique loan can be approved in minutes and enables you to have money available in several hours, making it the best option for situations when you need cash fast!
  5. There is no pre-payment penalty.
  6. Gold Loan providers charge nominal processing fees, which range between 2% and 4%. Although high value loans attract slightly higher charges, we feel that this is deserved for the extra administration effort. Gold Loan providers also charge valuators’ fees, but in the case of Muthoot Capital, which has in-house team of valuators, the valuation charges do not apply.
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