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  • October 3, 2023
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Unlock the Value: Smart Ways to Use Your Gold Jewellery for Instant Loans

Gold Loan

Almost everyone needs financial aid at some point in their life, and the reason behind that could be anything. Some people may require it to cover a planned expense such as further education, business expansion, home renovation, etc. On the other hand, some may need it to get over a temporary crisis, such as a medical emergency. Whatever the reason is, finding a reliable financing solution is of utmost importance in such situations. In today’s time, there are different types of loans available, with gold loans being the most popular option. These loans are not only quick and convenient but also come with low interest rates.

What is a Gold Loan?

Gold loan, as the name suggests, is the process of borrowing money by pledging some gold ornaments. Once that money is repaid, the borrower can claim his/her gold assets back. In India, the concept of taking out a loan on gold jewellery or other ornaments has always existed. However, the traditional moneylenders, or pawnbrokers, have been replaced by government-authorized financial institutions. With a number of rules in place, the entire process has changed to become more streamlined and convenient for borrowers. Currently, there are a number of banks and NBFCs that offer jewellery loans at competitive interest rates.

Apart from a low interest rate, jewellery/gold loans come with several other benefits. Some of them are:

  • Simplified documentation
  • Quick loan disbursal
  • Easy loan eligibility
  • Flexible loan repayment
  • Better security of gold assets
  • Higher LTV ratio

Smart Ways to Use Gold Loans

The best thing about availing a jewellery loan is that it comes without any fund-usage restriction. This means you can use the loan amount for any purpose you want. Here is how you can make your gold ornaments work for you:

1. Vehicle Purchase

You can consider taking a loan against your gold assets to finance your vehicle purchase. This is not only faster as compared to traditional vehicle loans but also comes with lower interest rates. In addition to this, it also comes without the hassle of lengthy documentation. Apart from this gold loan can also be beneficial as a bridge finance/loan for your sanctioned Vehicle Loan.

Also Read: Putting Your Gold to Work: A Clever Way to Raise fund to Buy Your Dream Vehicle

2. Educational Expenses

Whether you want to pursue a short-term course or a full-time educational degree, it requires a hefty sum of money. The process of applying for an education loan is not only complicated, but loan approval also sometimes takes several weeks or months. In such a case, gold loans are definitely a good option to cover your expenses. Also even if your educational loan is ready, you have limitations of usage for different purposes. Here gold loan provides flexibility of usage also.

Also Read: How to Support Student Education through Gold Loans

3. Business Needs

Whether you need the working capital to start a new business or are planning to expand your existing one, you can definitely opt for a gold loan. With the flexible eligibility criteria that these loans come with, you won’t face any challenges getting your loan sanctioned. Since the pledged gold ornaments act as collateral, there is no requirement for any kind of credit check.

Also Read: Become a Shop Owner: Expert Advice on How to Start and Grow Your Business?

4. Home Renovation

Since a gold loan does not require a high credit score or extensive documentation, it is a quick and easy way to obtain funds for your home renovation project. Whether you want to repair your house, make changes to its existing structure, or purchase new furniture, you can do that without any problem.

Customers Who Utilized Muthoot Gold Loans

In all these years, Muthoot Finance has helped a large number of people fulfil their dreams with hassle-free gold loans. Here is how few of our customers used the funds obtained from our instant loans against gold jewellery:

1. An Accountant from Mumbai, Maharashtra

Mumbai, also referred to as the country’s financial capital, is considered one of the most expensive cities to live in. With property rates going beyond the reach of a middle-class family, buying land or a house is a dream for many people. Working as an accountant in the city, a customer chose Muthoot Finance to be a part of her journey to turn this dream into reality. In 2016, she was in the process of buying a property, but arranging the required money was no less than a challenge. This is when she decided to use her gold ornaments to obtain the funds. Within no time, the loan was sanctioned, and today, she has her own property in Mumbai, the City of Dreams.

2. A Businessman from Delhi

Owning and running a business is not an easy feat, as it comes with a number of expenses. A middle-aged shop owner in Delhi was struggling to remain profitable due to a shortage of funds. He was trying to find a financing solution with a lower interest rate, as paying a hefty sum as loan interest would not help him in any way. With Muthoot Finance’s quick gold loan, he got quick access to the funds required for business. It not only helped him get over that temporary cash crunch but also expand the business to maximize overall profits.

3. A Housewife from Kolkata

A housewife who has been living in Kolkata for many years was finding it difficult to manage her everyday expenses with a limited income. She was looking for a reliable lending institution that she could get help from in times of financial emergency. That’s when someone told her about Muthoot Finance’s hassle-free gold loan option. She applied for a gold loan at Muthoot Finance to fund some personal expenses, and since then we’ve become her preferred choice every time there is an urgent need for funds.

Given the number of advantages they come with, Muthoot Gold Loan@Home schemes are definitely better as compared to other financing options. If you also want to apply for a jewellery loan, you can choose from several gold loan schemes that we offer. With flexible loan-at-home facility, you can get your loan application processed from the comfort of your home. From application submission to document verification, everything will be done online. Register for a home visit today.

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