Kartnataka
  • October 3, 2023
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Fast Cash, Low Risk: Exploring the Benefits of Opting for a Gold Loan

Gold Loan Interest Rate

Cherished as heirlooms passed down by generations in Indian households, gold has always been a valuable asset, and its appeal has only grown stronger with time. While gold is often associated with jewellery and usually kept in bank lockers, it is nevertheless one of the best sources for obtaining funds in urgent financial situations. A gold loan is a time-tested fast cash and low-risk investment option to raise credit without much hassle.

If you have enough gold sitting idle in your bank lockers and looking for hassle-free financial aid to navigate through personal financial exigencies, a gold loan is a wise choice for you. Here are the key benefits of opting for a gold loan:

Quick Disbursals

Unlike other loans, such as personal loans, gold loans are free from stringent requirements that a borrower must submit to opt for the loan. Since gold is a tangible asset that borrowers need to keep as collateral with the lender, the latter provides such loans with minimal document verification and lesser processing time. Hence, with minimal documentation combined with digitization, gold loans are a fast and efficient tool to come out of a financial situation easily. Once the pledged gold’s authentication process is done, the borrower can expect the loan amount in their respective bank accounts within the same day or as the lender advises.

Low-Interest Rates

In today’s time, gold loan interest rates are very competitive when every other loan type feels heavy on the lenders’ pockets due to its higher interest rates. This is because you must keep your gold as collateral with the lender; the lenders face a much lesser credit risk, hence the lower interest rates. The average gold loan rate can be anywhere between 10-16% per annum depending on the bank or NBFC you choose to opt gold loan from.

Gold Loan@Home by Muthoot Finance is one of the NBFCs in India that offers competitive interest rates on gold loans according to per gram of gold pledged. Muthoot Finance provides a comprehensive list of gold loan schemes that help you transfer the loan amount to your respective bank account within the same day of gold evaluation.

Flexible Repayment Options

One of the pressing concerns for borrowers looking for loan options is loan repayment options. When you opt to choose gold loans for short-term financial situations, there are often multiple repayment options to choose from. This is also one of the benefits of gold loans and a significant reason why most people opt for a gold loan over other types of loans. While conventional loan types offer limited repayment options, gold loans typically offer a wide range of repayment options for borrowers to choose from. This allows the borrowers to choose the best repayment option that suits their financial needs.

Also Read: Gold Loan Repayment: 4 Easy Ways to Repay

No Credit Score

For most borrowers, a low or non-existent CIBIL score for their chosen type of loan is a matter of grave concern. This is where the eligibility for a gold loan greatly benefits such borrowers. Since the interest rate for the gold loan depends on the gold kept as collateral with the lender, the borrower’s credit history is not factored in while sanctioning a gold loan. This enables people with poor or no credit history to avail of financial tools without any hassle.

However, one must note that failing to repay the gold loan amount on time may hamper their credit score if they wish to opt for other loan types in future.

Also Read: Is it Necessary to Have a Good Credit Score to Avail a Gold Loan?

Zero End-Use Restrictions

Unlike conventional loan types, gold loans are free from end-use restrictions. The borrower can use the loan amount in any financial exigency. In gold loans, banks or NBFCs put weightage on the borrower’s ability to repay the loan amount rather than the end use. The borrower performs the valuation of the pledged gold based on today’s or current rate per gram and sanctions the gold loan amount accordingly. Whether you want to pay the down payment for your vehicle, go on a family vacation or pay for your child’s education, a gold loan is one of the best options to easily fulfil such financial requirements.

In a nutshell, gold loans make an excellent choice for people seeking credit to achieve their personal goals. Gold loans, with added convenience in terms of fast cash disbursal to low-risk and lower interest rates, are certainly one of the best options when it comes to fulfilling short-term financial requirements.

With Gold Loan@Home by Muthoot Finance, you get the industry’s best benefits which are tailored to offer instant credit from the comfort of your home. All you need to do is request a gold loan on the website, get the gold valuation done at home, and the loan amount will be transferred to your bank account directly within the same day. With a transparent loan structure, there are no hidden charges when you choose to avail of a gold loan from Gold Loan@Home by Muthoot Finance. Look no further than Muthoot Finance when fast cash with low risk is your top priority when looking for a gold loan.

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