Gold Loan Purposes: Reasons to Put Your Gold to Use

Apr 08, 2020

Gold Loan Purposes: Reasons to Put Your Gold to Use

No matter how much you plan your finances, sometimes, a situation arises when you have to take out a loan. There are many different loan options out there in the market that can fulfil your financial needs – from emergency personal loans for urgent requirements and instant business loans to student loans for college education, or loans for automobiles. The choices available are limitless.

While these loans can take care of specific financial needs you may have, an online gold loan beats all of them in terms of convenience, speed and utility. Apart from the fact that gold loans can be applied for at any time, from anywhere, they have fewer documentation requirements, carry a lower rate of interest compared to other loans, and are also sanctioned more quickly.

Uses of a Gold Loan

Since gold loans are provided solely on the basis of physical assets, you can avail them for multiple purposes. Here are some popular uses for a gold loan:

  • Business, Startup or Small Enterprise

Gold loans are ideal for those who need an instant business loan. Sometimes, you may have an excellent idea to start a business but may not have liquid cash to set it up. This is often the case with women entrepreneurs who may have the skills to open a business at home but do not have the capital. But a gold loan can help finance any type of enterprise, big or small. Be it a grocery store, parlour, or boutique, or a gym, second-hand car dealership, or a cafe. The possibilities are endless, given the high LTV and low-interest rates of gold loans.

  • For funding your education

There are many institutions that offer student loans for college admission, covering tuition, hostel fees, books and other related expenses. Yet, education or student loans come with many clauses – one of these is that the educational institution one has secured admission with needs to be recognized by a competent authority in India or abroad. If the institution does not qualify as being eligible or income is insufficient to qualify for a student loan, applying for a gold loan can be a practical alternative.

  • Loan for Automobiles

A gold loan can also function as a good funding method to buy an automobile. Unlike an automobile loan, gold loans do not need any document proof from the seller, nor does it require proof of income. You can avail a gold loan with minimum hassle online to buy a car, scooter, or heavy vehicle that may be brand new, second-hand, or for commercial purposes.

  • Medical Emergencies

If you have a sudden medical emergency that comes from nowhere and you need instant money for hospitalization, tests or medicines, an online gold loan can prove to be very handy. While emergency personal loans can also be availed for medical requirements, they are often more expensive and take longer to be sanctioned. Gold loan processing is usually completed within 24-48 hours.

  • Miscellaneous

Sometimes, your need for money may not fit into a clear purpose like the ones above. A household appliance like the air conditioner may have broken down or you may need to repaint the walls. Perhaps, you come across a once-in-a-lifetime travel opportunity but do not have liquid cash to grab it up. While selling an asset or investment to fulfil these needs may seem unwise, a gold loan can be a smart and efficient way to pay for them.

There may also be times when your schedule or circumstances may not permit you to step out from your home or office. In such a situation, it can be helpful to look at online and doorstep services like Rupeek. This way, you save on time while conveniently securing the funds you need.

Take Away

Gold loans are an attractive borrowing option due to their numerous advantages, especially the low-interest rates and high LTV that they guarantee. There are also different purposes for which they can be tapped.

If you are looking for a reliable institute to borrow from, look no further than Rupeek. Rupeek provides fast and convenient gold loans online to meet your urgent financing needs. We provide doorstep services in addition to giving you the best value for your gold assets. Our interest rates on online gold loans are the lowest in the market, starting at just 0.89% per month, and we also give the highest rate per gram of gold. 

Our lending partners include leading financial institutions like ICICI Bank, Federal Bank and Karur Vysya Bank, and our online gold loans aim to provide you with the best value for money at the fastest rate possible.