Are Advance Cash Loans A Good Idea?

Nov 7, 2020

Are Advance Cash Loans A Good Idea?

There are times when unforeseen expenses can deter your monthly budgetary allocation towards various expenditure outlays. During such circumstances, most individuals turn towards their savings to tide over the period of cash crunch, thereby compromising their financial security for the future. However, the emergence of advance cash loans has effectively reduced the troubles considerably.

These loans, offered as short-term funding options by financial institutions in India, are extremely helpful when it comes to availing cash on an emergency basis. Furthermore, the minimum eligibility requirements associated with these loans allow borrowers access the advances without much hassle.

However, is it the best option to boost the availability of instant cash? Take a look!

What are Advance Cash Loans?

These loans, similar to payday loans, are offered to salaried individuals looking to meet financial obligations without disturbing their savings. Advance cash loans are short-term and unsecured in nature, and the interest accrual on them is calculated by lenders on a monthly or even daily basis.

As mentioned earlier, owing to the fact that applicants do not need to undergo elaborate eligibility and documentation formalities to avail these loans, they are highly accessible. In fact, individuals with a less than desirable credit score can also avail them without difficulty.

Prospective borrowers can easily apply for these advance loans online through the lender’s website or app, and receive the money in their account in a short while.

Nonetheless, since these loans are unsecured, the rate of interest offered against them is generally quite high. Furthermore, since these loans are available only for salaried individuals, the scope of their accessibility is restricted to a certain extent as well.

Prospective borrowers can, however, eliminate such issues easily by opting for alternative funding solutions like gold loans.

Following is a look at how gold loans can help borrowers meet their instant loan requirements easily, by offering better convenience as advance cash loans as compared to other funding options.

Benefits of Availing Gold Loans over Advance Cash Loans

Gold loans, especially the ones availed from leading lending institutions like Rupeek Fintech Pvt. Ltd. can offer borrowers a host of features and benefits that make them a more advantageous proposition over advance cash loans.

For instance, Rupeek Quick is one such feature that makes availing instant cash extremely simple and straightforward for those in need.

What is it?

It is an overdraft facility that can be availed by pledging your gold as collateral and availing a loan against it. With this facility, individuals can withdraw cash as per their requirements and the interest accrues only on the amount withdrawn. Furthermore, this amount withdrawn along with interest accumulated over it can be repaid anytime within 6 months of availing the advance.

Here is how it works -

  1. Individuals can pledge their goals to avail an extended line of credit.
  2. Cash from the total amount sanctioned can be transferred 24x7 to one’s account whenever required.
  3. The interest is paid only against this particular amount transferred to one’s account. The repayment liability for this facility, unlike advance cash loans, is much lower.
  4. The gold pledged can be released anytime, with free doorstep service.

With such benefits and more, this overdraft facility effectively helps borrowers to address their requirements for instant cash 24x7, even on Sundays and bank holidays.

Furthermore, in this regard, you can make your asset (gold) work for you without depreciating its value, making the gold loan a more beneficial proposition as opposed to other unsecured loan options.

Apart from the overdraft facility, you can also avail a gold loan from this NBFC to address sizeable expenses.

Why Should You Avail a Gold Loan from Rupeek?

One of the leading digital lenders in India, Rupeek has streamlined the process of borrowing against gold loans to quite an extent. Few of the perks offered by this NBFC that boosts the convenience of availing such loans are as follows –

  • High loan to value

Loan to value or LTV is the percentage of the pledged asset’s total value that can be availed as a loan at max. For instance, if the gold you pledge is valued at Rs. 10 Lakh, and the LTV offered against it is 75%, you can avail Rs. 7.5 Lakh as the loan amount. In this regard, you can avail the highest LTV against your gold with this NBFC at nominal interest rates.

  • Doorstep loan facilities

The NBFC offers doorstep loan facility that allows you to avail these loans without leaving the comfort of your home. To avail this facility, all you will need to do is make an application through the NBFC’s website, app or by placing a call. Thereafter, a loan manager will be appointed to visit your home on a scheduled date for loan valuation and KYC registration. After these formalities are complete, the loan amount will be approved and disbursed to your account, all of it within 30 minutes.

Also, the manager leaves with the gold only after the loan is disbursed to your account.

  • Minimal documentation requirements

To avail a gold loan, you will neither need to undertake an elaborate documentation process nor comply with any stringent eligibility criteria. Since the loan amount disbursed is based solely on the value of the gold you pledge, you can avail it without submitting any documents like your ITR proof and such. In fact, the lender does not take your CIBIL score into account to deem you eligible for the loan.

  • Assured security of the asset pledged

You can do away with the hesitation of pledging your gold to avail the loan with Rupeek’s uncompromising measures to secure your asset. For instance, the gold is collected from your home in a GPS traceable bag only after you have received the amount in your bank account. It is then deposited to the nearest partner bank’s vault, where it remains stored safely until the time you can repossess it.

Also, for the entire period, it receives additional security through an insurance plan provided at no additional charges.

  • Favourable repayment terms

If you are availing instant cash through Rupeek Quick in lieu of advance cash loans, you can repay the amount withdrawn with interest accrued within 6 months of availing it. Otherwise, if you choose to avail a gold loan, you will be able to opt for a repayment tenure ranging between 3 and 6 months (extendable by another 6 months). During this period, you will need to pay only the interest accrued against the amount availed and the rest as bullet payment after the completion of the loan tenure.

With such benefits and more, gold loans make for the most suitable option when it comes to meeting any type of funding requirement – whether big or small. Nonetheless, you must understand how your gold is valued before you apply for the loan to ensure that you are well versed with the entire procedure.

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