There comes a time in every person’s life when they are in urgent need of some cash. This can be for many reasons. It can be due to some medical emergency, or you have quit your job and need some money till you figure something out, or you are planning to start your business and need some seed fund, or any other reason. People need urgent money for various reasons. And when they have this need, what’s most confusing is how to get it? At present, there are a lot of options available in the market. But the best one, and the most preferred one by Indians, is a gold loan. If you have gold at home that’s not in use, you can put it to use and get the urgent cash you are looking for. A gold loan in India is the simplest and the best way to get some urgent cash. Here are the 5 reasons why:
1. Low Rate of Interest
No one likes to pay a high rate of interest on their loan. It makes buying something all the more expensive. So, it’s okay to want to look for options with a low-interest rate. One of those options is a gold loan. Of all the loans one can apply for, a gold loan has the lowest interest rate. This is what makes it a preferred choice for Indians. For someone looking for a small amount for personal use, a personal loan can be heavy on the pocket due to its high rate of interest. And the longer you don’t repay it, the more interest you have to pay. This is not pleasant for anyone. A gold loan easily becomes the preferred choice. And when you don’t pay high interest on your loan, you save a lot which you can spend somewhere else more efficiently.
2. Instant Disbursement
Some people use the term urgent loosely to mean instantly or maybe even a week. When it comes to a gold loan, however, the word urgent only has one meaning: Now. So, if you are really in urgent need of money, a gold loan will fulfil that need. From the moment you enter the bank or non-banking financial company (NBFC), the loan amount will be transferred to your account within 2-3 hours. For other loans, there is a long documentation process that takes days. It takes even more days for the disbursement of funds. If you apply for a gold loan, however, you can have the funds transferred to you as quickly as within 3 hours.
3. Minimal Documentation
Talking of the long documentation process in loans, it’s something gold loans don’t have. For a gold loan, your gold is the collateral asset. You will be giving it to the bank or NBFC. Consequently, there is not much documentation involved. The only documentation required in a gold loan is your gold and some formalities. That’s all. To put it even more simply, as long as you have gold, you can avail of a gold loan. Regardless of whether or not you have an account, regardless of whether or not you have a permanent address, regardless of whether or not you have assets, you can get a gold loan as long as you have gold. Availing of a gold loan is that simple.
4. Low Processing Fee
Since there is minimal documentation involved in the processing of a gold loan, the processing fee is less, too. What this means is that not only are you paying a low rate of interest with minimal documentation required, but you are also paying a low processing fee. So, when it comes to paying additional costs like the rate of interest and process fee, you are paying the least amount of any loan available. For any other loan, the number of additional costs will be a lot more. You can save on that money and buy yourself something useful instead of shelling out more money than required for a loan.
5. Credit History is Unimportant
This is really the final strike to the anvil. Whenever you apply for a loan, the first they ask for is your credit history. In a lot of cases, applications simply get rejected because the applicant doesn’t have a credit history, so the bank or NBFC has no idea whether or not you will pay the loan. This puts people in a confusing spot. They can’t get a loan because they don’t have a credit history and they don’t have a credit history because they can’t get a loan. You can break that cycle by choosing a gold loan. Not only that, even if your credit history is not so good, you can still avail of a gold loan.
A key thing to know about gold loans is that amount per gram rate of gold loans varies from one bank/NBFC to another. If you want to make the most of your gold, inquire about the per gram rate of the gold loan before applying for it.