A financial emergency cannot be predicted. Sometimes, when you least expect it, a perfectly healthy family member may fall ill and need to be hospitalized immediately. Or, an unforeseen situation may lead to a job or business loss, like the present pandemic, which could put a strain on your finances. Otherwise, a sudden breakdown of multiple household appliances like the fridge, AC or your vehicle may require immediate replacement.
In such circumstances, the need for money becomes urgent. Although there are many options available, from personal and auto loans to credit cards, depending on your need, emergency loans online may be a better bet. Online gold loans are one such option available. They require fewer loan documents, are quick, and can be applied for from anywhere.
Gold Loan as an Emergency Loan in India
While considering the different loan options available during a financial emergency, an online gold loan can be a practical choice. Gold loans are ideal when you need an emergency loan in India for a number of reasons:
- Quick Processing & Instant Disbursal
Online gold loans are one of the few emergency loans online in India that have minimal documentation needs. Once an individual completes the KYC process on an institution’s emergency loan app or website and submits the physical gold as security to the financial institution, the loan amount gets processed almost instantly. Often, the whole procedure can be completed within 24-48 hours, whereas other loans may take up to a few weeks. With Rupeek’s gold loans, you can get emergency funds released within 30 minutes from the comfort of your home following your loan application, if not instantly! The time taken to gather funds can be critical in an emergency situation.
- Low-Interest Rates
Compared to other loans out in the market, gold loans have a lower interest rate because they are secured loans. Lenders have a backup in case of defaulters – the gold asset can be auctioned to recover the loan amount, which is why the interest rates are lower when compared to other unsecured loans like personal loans. Low-interest rates on online gold loans can help you avoid a debt trap as a borrower. It lowers your total repayment amount, thus saving you from taking on additional loans in the future to repay this emergency loan you take out.
- Higher Loan-to-Value
Loan-to-value refers to the loan amount you are eligible for in relation to the value of an asset. Gold loans offered by banks typically have a loan-to-value ratio of 65%, while NBFCs offer 75%. This means that if you pledge gold assets worth Rs.1,00,000, you can get a loan of up to Rs.75,000 without selling your gold. You can easily get an estimated loan amount by using an online gold loan calculator.
- Easy Repayment Options
When you have to apply for an emergency loan online, it is often because you do not have money to meet your financial emergency upfront. Online gold loans give you multiple repayment options that can suit your financial status. For instance, if you want to make routine payments, you can choose an EMI repayment option. Otherwise, you can choose to repay the entire loan amount in one shot at the end of the loan period. All gold loan repayments can be done online, thereby making the whole process simpler.
- No Income Proof Needed
One of the biggest advantages of a gold loan as an emergency loan in India is that you do not need to show income proof to avail it. While other loans like personal loans will require you to produce proof that you can repay the borrowed sum, gold loans are backed by an asset which can be sold if a borrower defaults. In case you do not have regular income proof to produce, online gold loans can come to your rescue.
How Can Rupeek Help?
Rupeek is one of the leading online gold loan lenders in India. Our services are designed to meet all your urgent money needs. Rupeek’s online gold emergency loan app is easy to navigate and quick with processing to support you during an emergency.
We also provide doorstep services to make the loan process as convenient as possible for you. With the lowest interest rates and highest loan-to-value (LTV) ratios in the market, and multiple repayment options available, Rupeek’s online gold loans will allow you to apply for a loan from anywhere, at any time, complete worry-free.