In life, there can be instances when sudden financial emergencies disrupt your monthly budgetary allocations. In such cases, even though the funding requirements are not sizeable, they might force you to turn to your savings and consequently disrupt your financial stability. Such monetary deficits, however, can be easily made up for by availing a small cash loan online.
In fact, as per Financial Express, there has been a rising demand for small-ticket loans among borrowers in India in the past year. Furthermore, with lending institutions offering such mini cash loans online, one can simply utilise their smartphones to apply for such an advance and avail it in no time!
Cash Loans Online: What Do They Entail?
As their name suggests, these small cash loans are certainly not for meeting sizeable expenses. These are apt for emergency funding needs or for meeting daily expenses during overall cash shortages. As a result, these loans cannot be compared to other secured or unsecured advances offered by financial institutions to fulfil various personal or professional capital requirements.
But, what do they actually entail?
Financial institutions usually offer these loans as a pre-sanctioned amount from which individuals can withdraw cash as per their requirements. In turn, interest is charged only on the amount withdrawn by individuals. These small cash loans online are thus easily repayable and help borrowers meet their financial obligations without posing to be a financial burden on them.
In this regard, you can easily avail immediate cash loan by pledging your gold as collateral and raise the required funds.
For instance, with the facility of Rupeek Quick brought by Rupeek Fintech Pvt. Ltd. individuals can apply for and avail a credit line based on the value of the gold they pledge. They can then withdraw from this sanctioned amount as per their requirements anytime they want without hassle.
How Do Urgent Cash Loans Availed against Gold Work?
In the past few years, the emergence of organised platforms to avail loans against gold has bolstered the efficiency of this particular financing system. With regards to availing small cash loans online, platforms like Rupeek Quick have made the process streamlined, allowing borrowers to meet their sudden cash exigencies without any hassle.
Following are the steps through which borrowers can easily avail instant cash online via this facility –
- Apply through the NBFC’s app and avail a credit line based on the value of gold pledged. This app is as efficient as immediate cash loan apps go owing to the simple application process and increased user accessibility.
- Once the loan amount is sanctioned, individuals can withdraw the amount that they require through their bank accounts anytime with a click on the app.
- The amount withdrawn can then be repaid anytime within 6 months, with a nominal interest charged against it.
- Once the withdrawn amount is repaid, individuals can release the gold pledged to the NBFC as per their convenience.
With these few steps, individuals can meet their emergency cash requirements and keep their savings intact. Furthermore, availing these cash loans online also proffers several other benefits that can make the process of borrowing much more convenient in the long run.
Take a look!
Benefits of Availing Small Cash Loans Against Gold
Borrowers opting to avail a small secured loan by pledging their gold with Rupeek can enjoy the following benefits –
- No end-use restrictions
The amount availed as gold loans does not come with any end-use restriction for borrowers. It means that they can utilise it to cover any expenses – from investing in small-size businesses like boutiques, salons, beauty parlours, to financing medical emergencies or utilising it for any personal funding requirement.
- Minimal eligibility and documentation requirements –
The amount under this loan is sanctioned on the basis of the value of gold pledged as collateral. As a result, borrowers do not need to satisfy any stringent eligibility criteria to avail the funds.
Furthermore, the documentation process for the loan is also pretty straightforward. Individuals only need to undergo KYC registration to avail the loan. There is no CIBIL check, or ITR filing compliance necessary to be eligible for a gold loan.
- Doorstep loan facilities
This urgent cash loan from the NBFC can be availed from the comfort of your home. You will simply need to apply online through this lender’s website, app or by placing a call.
Thereafter, a loan manager will be appointed to visit your house for completion of formalities like KYC registration and gold valuation. If everything is found to be in order, your loan will be approved and sanctioned to you, all of it within 30 minutes.
- Assured security of the asset pledged
The gold you pledge is stored in the safety vault of the nearest partner bank until the time you can repossess it. Also, the gold is collected from your house only after the loan amount is sanctioned to your account, and is transferred in a GPS traceable bag for deposition. During the loan tenure, the gold remains insured, without you having to pay any additional charges for it.
- High loan to value (LTV) at minimal interest rates
Unlike advances from most other urgent cash loan apps, the credits availed against gold are secured. This automatically means that the interest rates against them are lower than other unsecured options. Furthermore, you can avail a high LTV against the gold pledged. This means that you can avail a high percentage as loan amount against the total value of the gold you deposit with the lender.
- Easy repayment terms
As mentioned earlier, this small cash loan online that you withdraw from the total sanctioned amount can be repaid anytime within 6 months, alongside the interest amount. Like, you can opt to make bullet payment at the end of the tenure. Additionally, under Rupeek Quick, interest is levied only on the amount you withdraw, thus limiting your overall repayment liability.
Thus, with such amazing benefits, these small value loans make for the ideal solution when it comes to meeting instant cash requirements. However, do not forget to learn about how your gold is valued before applying to optimise your benefits.