Kartnataka
  • August 8, 2023
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Putting Your Gold to Work: A Clever Way to Raise fund to Buy Your Dream Vehicle

Gold Loan

Are you planning to buy a bike or car.If yes, then there is no need to delay your plan any longer. You can use your gold ornaments, which are sitting idle in your bank locker, to finance your dream vehicle. This is a well-known fact that gold loans are one of the most convenient and fastest financing options. Generally, people avail a jewel loan to get over a temporary cash crisis or cover expenses like educational fees, medical treatment, home renovation, etc. But in recent times, more and more people are inclined towards this financing option to buy their vehicles as well. This is not only a more convenient option but also gives you access to a large sum of money in no time.

The Value of Gold Assets

In a country like India, gold is not just a precious metal. It has a high sentimental value and is also considered a sign of prosperity.Other than this, gold ornaments are also considered one of the safest investment options due to their lucrative returns. Over the centuries, gold has gained huge popularity as a form of investment due to its constantly increasing market rates. Other than this, given the easy liquidity that gold offers, it is also considered an ideal asset for raising funds in times of need.

The best thing about owning gold ornaments as an asset is that you don’t have to sell them when you need some financial aid. You can also pledge them to avail a loan and get over a temporary cash crunch. Whether you need funds for business expansion, travel-related expenses, or buying a vehicle, a gold loan is the best finance option you have.

Understanding Gold Loans

The concept of using gold as collateral to obtain a loan has always existed. In early times, people used to borrow money from traditional moneylenders to fulfill their financial requirements. Now things are much simpler and organized with government-authorized financial entities such as banks and NBFCs. The basic concept still remains the same where you need to pledge your gold assets to get a certain amount of money. Once you repay the money, you will get your pledged ornaments back. The only difference is that now this process includes some paperwork, making it more reliable and safe. Offering a number of gold loan schemes, Muthoot Finance gives you the option to explore and decide which gold loan is best for you.

How Gold Loan helps you buy your Dream Vehicle

Imagine you have your eyes set on purchasing your dream vehicle, a brand-new car or Bike. But you can only avail a Vehicle Loan if you have the upfront amount of 1 Lakh rupees. However, you find yourself falling short of the required upfront amount by 50,000 rupees. In this scenario, a gold loan can come to your rescue and bridge the financial gap.

With a gold loan, you can leverage the value of your gold possessions to secure the additional 50,000 rupees needed. Let’s explore how this process can help you raise the necessary funds:

  1. Assessment of Gold: The first step involves visiting a lender who offers gold loans. They will evaluate the quality, purity, and market value of your gold items, such as jewelry or ornaments. Based on this assessment, the lender determines the loan amount they can provide.
  2. Loan Approval: Given that your gold possesses a certain market value, the lender agrees to offer you a loan amount that typically represents a percentage of that value. Let’s assume the lender agrees to provide a loan amount of 50,000 rupees against your gold collateral.
  3. Gold Collateral: You provide the lender with the gold items as collateral, ensuring the repayment of the loan. The lender keeps the gold securely stored until you repay the loan amount within the agreed-upon time frame.
  4. Utilizing the Loan Amount: Now that you have the 50,000 rupees from the gold loan, you can combine it with the 50,000 rupees you already have in hand. The total sum of 1 lakh rupees can be used as the upfront amount to purchase your dream vehicle.

Advantages of Financing a Vehicle with Gold Loans

Quick Processing and Disbursal

Unlike traditional vehicle loans, there is no need to wait for weeks or sometimes months to obtain the loan amount. Gold loans are a preferred financing option because of the quick turnaround time they come with. With flexible eligibility criteria and minimal documentation, gold loans are an ideal option for financing a vehicle purchase.

Also Read: Gold Loan Documentation Process in Muthoot Finance

Complete Protection of Your Gold Assets

Another good thing about availing a gold loan with Muthoot Finance is that you don’t have to worry about the safety of your assets. All your pledged gold ornaments are stored in a secured vault to ensure the maximum amount of safety.

Also Read: Is Your Gold Safe When You Take a Gold Loan

Flexible Loan Repayment

At Muthoot Finance, gold loans come with flexible repayment options. You can choose loan tenure as per your convenience and make digital payments through any available options. To avoid any risks to the pledged gold assets or paying a late payment fee, make sure that you never miss a payment.

Also Read: Upgrade Your Living Spaces with Flexible and Affordable Gold Loan Options

How to Maximize the Benefits

Here are a few tips that you can use to maximize the benefits of financing a vehicle with gold loans:

  • While making a vehicle purchase, it is best to make a budget beforehand and stick to that. Whether you are applying for a traditional vehicle loan or choosing a gold loan as a financing option, it is best to go for a vehicle that aligns with your financial capacity.
  • Always go for loans with a shorter tenure because the shorter the loan tenure, the less interest you’ll have to pay. This way, you can save a significant amount of money in the long run.
  • Never miss a single monthly interest payment, as it can not only result in a late payment penalty but also impact your credit score. So always make sure that your monthly payments are made on time.

If you are also planning to apply for a gold loan for a vehicle purchase, Muthoot Finance gives you several options at the most competitive interest rates. Here, you can not only find some of the best gold loan offers in India but also avoid the hassle of making multiple branch visits. With our loan-at-home facility, you can apply online and get quick access to the required funds. Register for a home visit today.

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