The term ‘emergency’ signifies situations that occur out of nowhere, and they often require instant solutions. The same can be said about a financial emergency, and in this case, instant solutions are not always easy to come by.
In this regard, gold loans stand out among other financial products. The easy availability of this financial product makes it a viable option to meet any monetary exigency.
What Makes a Gold Loan the Most Viable Option During an Emergency?
Here are some highlights on what makes loan against gold different:
· Fast approval and disbursal
· Easy eligibility parameters
· High loan value
· Low interest rates
· Repayment flexibility
· No end-use restriction
To know the details about each of these aspects, keep reading!
1. Fast approval and disbursal
Talking about the accessibility of gold loans, the first point that needs mentioning here is prompt approval and disbursal. The primary reason behind this is that it is one of the few credit instruments that require minimal documentation. After completing the application process online, borrowers can then submit necessary documents online.
After that, once the gold evaluation process is complete, applicants receive their loan amount within a few hours.
On the contrary, it takes at least 24 hours for other financial products to get processed and verified before disbursal of the amount.
2. Easy eligibility parameters
The eligibility requirements of a gold loan are relatively lenient compared to some other credit instruments. Here, prospective debtors can get funds without maintaining a substantial credit score or surpassing the monthly income requirements. However, they need to ensure that they fit the required age bracket and their gold items meet the quality standards.
Another notable advantage of a gold loan as an emergency credit option is that it does not require you to submit income proof. While some of its other secured and unsecured counterparts need borrowers to submit this document mandatorily, here, one can skip it to get the necessary financial support for the exigency.
3. High loan value
A notable advantage of a gold loan is that it comes with a relatively high LTV (loan-to-value) ratio that enables one to apply for a larger loan quantum. As per RBI’s notification, one can get up to 75% of the gold article’s market value as credit. It means, if you have gold items of Rs.10 lakh, you can get a loan of up to Rs.7.5 lakh.
Now, an interesting fact about a gold loan is that one can access a higher amount by pledging more collateral. Therefore, borrowers can estimate their requirements and then apply accordingly. It will also help them to manage their debt better.
4. Low-interest rates
Since gold loans are secured in nature, traditionally, they reduce the lending risk of a financial institution. Resultantly, lenders offer a more competitive interest rate against it when compared to some of its unsecured counterparts.
Whether you are facing an emergency or not, a low-interest rate is always welcoming for a borrower. It lowers the total repayment amount, which paves the way for better debt management. Also, it does not put any strain on an individual’s finances.
5. Repayment flexibility
Even though it is not directly related to emergency funding, the repayment flexibility with regard to gold loans often makes them a preferred option. Leading financiers offer upfront interest payment besides EMIs. Borrowers can also choose to pay the total amount in one shot. These allow individuals to plan and manage their finances accordingly and avoid any payment default.
6. No end-use restriction
When discussing the viability of a gold loan in an emergency situation, the no end-use restriction is its biggest USP. It means borrowers can utilize these funds to meet an array of financial requirements. It can be personal expenses, medical emergencies, or professional requirements. The lender will not intervene in this process.
How Can You Utilize a Gold Loan to Meet Emergency Financial Shortcomings?
Since it has been established already, one can use a gold loan for a multitude of purposes. Here are some highlights:
· Funding medical expenses
· Meeting business expenses
· Paying utility bills
· Debt consolidation
Let’s take a look at these in detail.
A. Funding medical expenses
When talking about financial exigencies, what is greater than the medical ones? Usually, they come unannounced and lead to significant expenses. In such cases, availing credit against gold ornaments can be your savior. Since you receive funds within a few hours, you can immediately attend to any needs without usage restrictions.
B. Meeting business expenses
The ongoing health crisis and the recent economic downturn has left a lasting effect on businesses across the country. In trying times like these, a gold loan can offer necessary monetary support. Since the loan amount here is not limited like any other professional loan, one can pledge gold items as per his/her needs and get the necessary funds.
Apart from meeting urgent company-related expenses, one can also use these funds for further development.
C. Paying utility bills
Talking about financial emergencies, unpaid utility bills can be a notable one. Irrespective of the reason behind non-payment, one can meet that expenditure with the necessary assistance of a gold loan.
D. Debt consolidation
Managing multiple debts is not only a tiring affair but also a costly one. The reason is, one needs to remember every repayment date and pay interest on multiple loans. Instead, consolidating these debts and making a single repayment is a more sensible approach.
In this regard, gold loans can be a great option. Individuals can get the necessary funds for debt consolidation and reduce their hassle. Moreover, the rate of interest here is comparatively low. Hence, one can make substantial savings during repayment.
Apart from these above-mentioned emergency scenarios, individuals can use their gold jewelry for an instant loan and meet an array of expenses.
Meet Your Emergency Financial Needs with Rupeek Gold Loan
To meet a financial emergency with a gold loan, one needs a lender that can streamline this process further. In that regard, Rupeek Gold Loan is an ideal option.
Here are some reasons why prospective gold loan applicants should consider Rupeek:
I. Prompt disbursal
After borrowers submit their loan requests through the Rupeek app or website, company executives will contact them for further processing. Following a successful verification of documents and gold items, individuals will receive funds within 30 minutes.
II. Doorstep verification
Rupeek provides doorstep service, which reduces the stress of customers. After an individual places a request online, the company representatives will visit the applicant’s address to complete the KYC and gold evaluation processes.
III. Nominal paperwork and easy eligibility
A gold loan from Rupeek requires one to submit only KYC details. Moreover, the eligibility criteria here are not stringent as any Indian citizen above 18 in possession of gold ornaments can avail financial assistance.
IV. Repayment options
Debtors can select from flexible repayment options, subject to their financial situation. Borrowers with regular cash flow can opt for regular EMI payments. Otherwise, those lacking a steady source of income can choose to pay any amount at any time within the tenure. This also includes a one-time bullet payment to pay the entire loan outstanding at once.
V. State-of-the-art safety protocols
Rupeek provides best-in-class safety to the pledged gold items. Under this ISO-certified process, loan managers seal the gold ornaments in a GPS-enabled bag and take them to the authorized bank branch. Upon arrival, the items are stored in military-grade vaults under round-the-clock surveillance. Alongside these, Rupeek also extends 100% insurance cover during the tenure to ensure the safety of your gold.
VI. Overdraft facility
Gold loans with Rupeek become even more hassle-free with its overdraft facility, i.e. ‘Rupeek Quick’. The additional benefit of this facility is that individuals are only liable to pay interest against the amount they utilize and not the whole loan amount. Also, it does not require one to submit any extra documents.
Alongside the aforementioned advantages of a gold loan from Rupeek, another salient feature that needs a special mention here is its hassle-free application process.
How to Apply for an Instant Gold Loan from Rupeek?
Follow these steps to apply for a gold loan from Rupeek:
Step 1: Visit Rupeek’s official website or download the mobile application and place a loan request using your contact number. Alternatively, you can apply by placing a direct call.
Step 2: Following your application, you will get a call to confirm your requirements.
Step 3: Once you confirm the details, a loan manager will visit your address.
Step 4: After arriving, the loan manager will ask for an OTP shared with you to establish authenticity.
Step 5: Once this authentication is complete, the company executive will appraise your gold items, and the loan amount will be then confirmed depending on the current market rate.
Step 6: After the document verification, the loan amount will be transferred under the supervision of a loan manager, who will then transport these gold items to a nearby partner bank.
Considering the advantages of a gold loan and the benefits it brings, it can be an ideal solution to meet any financial emergency. However, before moving ahead, do not forget to go through the terms and conditions of a loan to make an informed decision.