Nowadays inflation is high, so gold is considered as an outstanding hedge in the volatile market conditions because it not only provides you golden returns but also helps in getting good mortgage value. In these tough times of this pandemic outbreak, where banks are offering loans at high interest rates, interest charges for gold loan continues to be cheaper. One can “Apply For Gold Loan“ to fulfill his/her duties during shortage of finances in COVID-19 economy crash.
A loan against gold can be availed from any bank or NBFC by pledging your yellow metal as collateral. This secured loan can solve your money crisis to a large extent. You can secure loan money depending upon the amount of gold you have and use that quantum to look after your financial requirements. It is truly evident that interest rates offered on gold loan are far cheaper than any other loan. In this article, we have mentioned various reasons why gold loan is the best option to raise cash in financial crunch.
Cheaper Loan: An unsecured loan does not require any asset to pledge as collateral, therefore the interest rates charged by the lender is often high than gold loan. If you reply for any unsecured loan, lender may charge a processing fee for that loan. In case of gold loan, lender may not charge any processing fee. As gold loan is a secured loan, so it is cheaper as compared to other loans making it better option to raise funds.
Secured Loan: The LTV ratio for loan against gold can be up to 70-80% depending upon the market value of your gold ornaments. For example, you may avail up to Rs. 75 for every Rs. 100 worth of a pledged gold assets. It is one of the most secured loans as you will have enough cash to look after your needs.
No Credit Score: While applying for any loan, your CIBIL plays a great role in approving your loan application. If your score is low, you may either get your loan application rejected or lender may charge you a high interest rate. However, in case of loan against gold, your credit score does not matter as long as you have gold jewelry to pledge.
Flexible Repayment: One can choose the repayment period as per your convenience, which you feel will be suitable for you to pay back your loan quantum to the lending institution. The interest rate will be charged on the basis of your loan tenure and amount.
Well, before you “Apply For Gold Loan Online“ or offline, make sure to research for best gold loan solutions and compare the various lenders in terms of processing fee, interest rate and loan tenure to zero in on a scheme which you feel will be best for you. Once you finalize the lender and loan scheme you want to avail, you can apply for easiest and quickest gold loan either on the bank or NBFCs website or by visiting the nearest lender’s branch.