New Delhi: People often find themselves in financial difficulties, facing financial hardship. Sometimes, even banks refuse to provide loans during difficult times, or it takes a long time to secure them. Family needs trap many people in the trap of personal loans, making them indebted.
Gold loans play a crucial role in combating adversity. Gold loans are a great option. One can overcome difficult times by availing oneself. Gold loans are hassle-free. They offer instant funding and low interest rates. If you want to get a gold loan, learn the essential facts first.
Important Facts About Gold
Many people forget about their gold after storing it in a bank locker. But you should know that this gold proves to be very helpful in difficult times. You can get a substantial amount on a gold loan. You will need to pledge 18-carat and 24-carat gold. NBFCs grant gold loans based on the value of the collateral.
This is a secured loan anyway. Interest rates are significantly lower than personal loans or credit cards. The gold loan process is quite fast. After depositing the gold, a valuation is done, and the loan amount is disbursed within a few hours. This means you get a gold loan without any hassle. This amount proves to be helpful.
No Worries About Credit Score
Gold loans also have some special features. Upon depositing the gold, the money is transferred to your account shortly after valuation. This eliminates the need for credit score concerns. No need to submit many documents; just an identity card and proof of ownership are sufficient. It’s also a good scheme for young people. It’s an easy option for those with poor credit scores.
Gold loans are generally affordable and convenient. They come with a 5% processing fee, late payment charges, prepayment charges, and a maximum LTV of 785%. It’s also important for people to understand the difference between fixed and floating interest rates to avoid future cost increases.
Important Point
There is a rapid demand for gold loans in India. According to a report, it is projected to grow by 122% to reach ₹2.94 lakh crore by September 2025. This clearly indicates that Indians are using their gold wisely. In case of a financial crisis, people may prefer gold loans over personal loans. This can also serve as a financial safety net.
