Gold Loan

When you require emergency funds or urgent loans, a gold loan is one of the most flexible and hassle-free loans that you can acquire. A few of the benefits that are exclusive to gold loans are listed below:

1. Low loan interest rates - the interest rates are less because of the security of the collateral.
2. Minimal documents – the only documents that the borrower is expected to submit are the address proof and identity proof
3. High-value loan – up to 75% of the market value of the gold can be obtained as the loan and in some cases, up to 90%.
4. No upper limit – the amount that you can obtain is determined by the value of the pledged gold.
5. No requirement of income proof – the borrower can be unemployed or have an irregular income and still get a gold loan.
6. No requirement of credit history – the borrower can have a poor credit score or CIBIL score and still be eligible for the loan.
7. Flexibility – a secured loan is more flexible than other sources of income. The borrower has a variety of repayment schemes to choose from.
8. Speed – the whole transaction, from the loan application to the disbursement of the funds takes place within an hour.

Gold loan is the most flexible and popular source of funds in the Indian financial market. A gold loan is a secured loan, which means that to obtain quick funds or emergency loans, the borrower has to pledge their asset (in this case, their gold) with the lender to obtain funds in return. A secured loan is also known as a collateral-based loan since the funds can be availed only against the asset of the borrower. Gold loans owe its popularity to its attractive features such as:

1. Low rate of interest
2. High-value loans
3. Minimal paperwork
4. Flexible repayment options
5. Instant loans etc.

Using a gold loan, the borrower can get up to 75% of the market value of the collateral as the loan amount. In some cases, up to 90% can also be disbursed as the loan. Instant gold loans are so true to their name that the funds get transferred to the borrower’s account within one hour from the loan application.