Gold loans are among the best loans you can avail of right now because with the help of a loan it becomes easier for them to buy luxuries and meet some necessities that cannot be fulfilled due to low savings. You can take a gold loan by putting your gold as collateral for security purposes. Many people fear losing their gold as it is a type of unsecured loan, but it is just a misunderstanding. These loans are the best loans for people who are not eligible for personal and business loans. These loans offer a high loan to value ratio of 75% of the gold’s total weight.
If you are seeking a great deal, we are here to help you. With the help of Muthoot Fincorp Ltd., you can secure a deal that fulfills all of your requirements, and you could pay back the money within your comfort. You can get all the information online about the steps you need to follow to avail of the gold loan. These loans have less interest rate as compared to personal loans. One can use a gold loan calculator to calculate the final amount, including interest. There are many benefits of a gold loan as compared to that of other loans.
- No income or bank statement needed: Before sanctioning of any loan, all the lenders require to have a strong repayment structure, and for that, they need to show a good salary structure. But with loan against gold, the borrower needs to deposit gold as collateral. The lenders in return of gold will provide the approved amount of money to the applicant. As a result of which there is no need of giving any salary or income proof. The sanctioned amount would depend upon the quality of gold ornaments and bars.
- Credit Score: For a loan against the gold, you do not need to have good credit records as the lenders are not affected by the credit score or bad debt. As far as one can provide gold as collateral, they are good to go. Therefore, anyone can apply for a gold loan in need of urgent cash.
- Less rate of interest: One of the advantages of availing a gold loan is low-interest rates. Lenders generally offer 12%-16% per annum. Compared to other loans like personal loans or business loans, gold loans offer much better rates. It is one of the best options for people who need a loan at an affordable price. In the current market, where the price of gold is high, you can easily fetch great prices resulting in the better loan amount.
- One-time payment facility: Borrowers can choose whether they want to pay monthly EMI’s or make a one-time payment. By one time payment, we mean, you only have to pay interest during the loan period, and the rest of the borrowed amount can be delivered in a single instalment at the end of the loan.
- Less paperwork and quick approval of loan: Gold loans are for those who want to raise temporary capital or funds. The approval process of loans against gold is speedy, which comes with an additional benefit of no paperwork. You do not have to submit other documents like income tax returns. With the help of gold loans, you can eliminate the need for extra copies to sanction the loan.
How much money can one get per gram of gold?
As the rate of gold changes daily depending upon the market trends, the amount you can get for your gold depends upon various factors like the quality of gold, tenure of loan and more. With the help of a gold loan calculator, you can get an estimate of the amount of cash you would be getting in return of your gold.
Gold loans are one of the best loans if you need money urgently. The number of documents and time required for approval of loan against gold is significantly less. You can choose the tenure and amount of EMI’s according to your need.