Top Benefits of Gold Loan Overdraft

Nov 21, 2020

India’s love for gold is well-known for ages. Studies conducted in 2019 showed that households across the nation piled up approximately 24,000 tonnes of gold, the highest reserve of this precious metal across the world. The total value of these holdings touches almost 40% of the nation’s GDP (for FY19).

Gold was always considered as a measure of wealth. Whether it is used as ornament or stockpiled as an asset, it was to act as a contingency during unforeseen situations. It was probably never as evident as it is today, with the emergence of gold loans.

Instant cash loan against gold is a useful facility, especially if you want access to credit in minimum time. Moreover, with Rupeek Fintech Pvt. Ltd. offering you an overdraft facility called Rupeek Quick on gold loans, you can arrange a substantial capital and pay a minimum rate of interest against the borrowed amount.

How, you ask?

Let’s take a look.

What is a Gold Loan Overdraft Facility?

Gold overdraft facility allows you to store your asset beforehand, and create a line of credit against it whenever you want. The total loan amount is determined as per the value of gold pledged.

You can draw as much funds as you require, within the allowed credit limit, and repay the sum within a predetermined repayment period. Interestingly, you pay interest only on the amount you utilise under this facility.

This type of credit line against gold helps keep the cost of the loan to a minimum. Moreover, it allows you to spend as much as you need, whenever you need it without any restriction to end-use.

Who can benefit from an Overdraft Facility?

Gold loan overdraft facilities are useful for everyone. However, they can prove especially beneficial for small and medium scale business owners. Because it allows availing small-ticket loans whenever one needs financing, and allows interest payment only on the quantum of loan, an individual with periodic credit requirements will find it advantageous.

Repayment becomes hassle-free with a reduced rate of interest. Moreover, the financial institution can offer you a higher quantum based on the present rate of gold, even after you have taken the loan. This can prove beneficial with the overdraft facility against gold as withdrawals can be made even for a higher amount.

Make Gold Work for you

Earlier, Indians were hesitant to pawn their family heirloom such as a gold ornament, even during dire emergencies. It was primarily because of non-existing infrastructure and an unregulated market. The precious commodity was often sold altogether or pledged to local lenders at arbitrary rates of interests.

Fortunately, this situation changed over the years.

Today, gold loans are one of the fastest and most convenient ways with immediate fund availability via an instant cash loan against gold jewellery. Thanks to a regulated and affordable rate of interest, transparent policies, and a customer-first attitude, more and more individuals requiring funds are looking for gold loans to mitigate their immediate financial crunch.

As gold is pledged as collateral, one can enjoy affordable interest rates. Customers are also drawn into facilities like doorstep service to assess and pick up gold, allowing an increasing number of first-time borrowers to avail this facility.

How to Get a Credit Line against Gold?

You can get a line of credit against gold from Rupeek any time and from anywhere, even during bank holidays and Sundays. A high loan to value ratio along with affordable gold loan interest rate makes it one of the best financing options available in today’s market.

An instant cash loan against gold can be availed as a new line of credit, or you can shift your existing gold loan from any other financial institution.

  • No end-use restrictions

Overdraft facility against gold comes without any end-use restriction, allowing you to utilise the fund for whatever financial shortcomings you might face. Moreover, this facility allows you to borrow funds whenever necessary through the dedicated Android App, which is helpful for immediate financing.

  • Arrange it from your home

The convenience of applying and availing these types of credits makes them attractive for many. Once you apply for a loan, you will be able to schedule a loan manager at your home for KYC procedures and appraisal of the gold assets.

Once that is complete, you will be issued new pledge cards, and the loan amount will be transferred to your account within a few minutes only.

  • Minimum documentation

To apply for a loan or gold overdraft facility, you need to submit the following KYC documents.

  1. Identity proof, such as Aadhaar Card, PAN Card, Voter ID card, Driving License, Passport, etc.
  2. Local address proof, such as Aadhaar Card, utility bills, Voter ID card, Driving License, Passport, lease agreement of the local address, etc.

KYC formalities usually take only a few minutes, as the executive scans the documents and sends it for instant verification.

  • Easy repayment policy

During the repayment period, you can do interest payment, closure, or part prepayment towards the outstanding amount.

Interest payment is only the total interest amount you are required to pay every month, whereas the closure amount is the total sum you have to pay to release your pledged gold. You can also repay a part of the outstanding debt at any time. You can make these payments either through the dedicated Android app, or navigate to the website.

And that’s not everything.

You can continue an existing loan and re-pledge the jewels anytime, as well as opt for a partial release, by simply contacting the customer support team.

Safe and Hassle-Free Financing – At Your Doorstep

Whenever you open a credit line against gold from Rupeek Fintech Pvt. Ltd., your pledged gold is stored in facilities with bank-grade security, with round-the-clock surveillance to ensure complete safety. Moreover, gold jewellery is fully insured to prevent any loss incurring because of theft or accident while it is transferred from your home to the nearest facility.

With such a host of advantages, availing an instant cash loan can prove beneficial for anyone who needs financing. Make sure to confirm gold value to apply for a suitable loan amount that is approved conveniently.

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