When it comes to credit and loans they are the base of our world today and hence banks encourage people taking loans for their needs. Perhaps the most accepted asset against which loan is provided is gold. The wisdom of our ancestors still rings true as the gold interest rate is the lowest among all other personal loans and it proves to be so till today. India being one of the major importers of gold has also made this process simpler. Gold loan benefits are many out of which low interest rate and low gold loan processing fee are probably the biggest.
If you are in need of a loan and happen to have gold at your disposal you can easily take that gold to the bank and get a loan against it (such as Bajaj gold loan), keeping your gold as security. The gold must range from 18K to 24K, and you get a value ratio of 75% of the price of the gold. It can be understood if we remember the concept of ‘mortgage loan’ where a property or house is kept with the bank and a loan is taken against it.
10 reasons you should take a gold loan for your financial needs
Benefit 1. Low gold loan interest rates
Gold loan interest rates are one of the lowest among other burrowing options such as mortgage loan or personal loan. Companies like BAJAJ FINSERV offer an interest rate of 10% to 18% p.a. which is much lower than the interest rates charged on other forms of loans, hence the low interest rate of gold loans makes it one of the most affordable and payable loans in the market.
Benefit 2. Quick access to funds
When taking a gold loan, you can get fast access to funds without delay which is highly unlikely when taking other forms of loans. The bank may take only a few hours to disburse the loan and it hugely adds to your benefits. The gold loan processing fee is also extremely low as gold is an extra security for the bank. Usually it does not exceed 100 Rs, one of the most important gold loan benefits.
Benefit 3. No impact of poor credit history on availability of loan
This is one of the best gold loan benefits that it does not judge the credit history of the borrower. Gold being a tangible and expensive collateral assures the lenders of being able to get back their principal amount hence your credit history is not important when giving the loan.
Benefit 4. Different payment options and schemes
Along with low gold loan interest rates, several banks give the benefit of several different types of payment schemes for the borrower so that they may be able to pay it back on time, such as being able to pay just the interest, or in small EMIs or paying the interest and principal both after a year.
Benefit 5. Best format of loan for women
The gold loan benefits are most applicable and helpful to women. Things like low gold loan interest rates make it easier for women to borrow money in times of need. Low gold loan processing fees help women access loans quickly and easily, making it easier for them to aid themselves during emergencies.
Benefit 6. Documentation
The documentation needed to access this loan is minimal. Just the basic documents are enough to avail this loan such as identity documents and address proof. Other documentation is not required.
Benefit 7. No income proof required
One of the greatest gold loan benefits that especially help women who do not work or even men. You do not have to provide an income proof for this loan. As the financial institutions have the security of the gold they do not ask for the income proof.
Benefit 8. Enhances credit score
Gold loans can enhance your credit score immensely, just like any other loan but it has way more relaxed methods of payments than other types of loans. Making gold loans most beneficial for someone who would want to fix their credit score.
Benefit 9. Gold loans are safe
These types of loans offer security to the lender hence making them provide various other benefits for you. Non-tangible assets are difficult to keep track of and scrutinize for the lender thus with gold, a tangible asset, the lenders have security of repayment and can offer various benefits.
Benefit 10. It is a safe place for your gold
This is an added gold loan benefit along with the low gold loan processing fee and low gold loan interest rates that if keeps your gold safe and in a financial institution, w8th insurance against threat and safe from it.
So, looking at these benefits it must have become clear to you why a gold loan is the best for your financial needs. You should always choose a trusted institution to avail your gold loan as it is a matter of security for you and your assets so make that choice wisely.
Bajaj Finserv provides you with secured gold loans up to 2 crores with easy repayment solutions, low interest rates, easy application process and many other useful benefits along with the trust of Bajaj.