Among all of the countries in the world, Indians are very popular for having the highest number of reserves of gold. Gold is a precious metal that is carrying a significant value, so it has the potential to rise in the future. Many a time, there is a requirement for the people to raise funds. It can be for medical expenses, business setup, a child’s education, or any other emergency in the family. whenever the person faces an issue where there is an urgent requirement of cash, it is always better to take a gold loan. These are the type of loans that comes in handy. The person can easily go for the gold loan payment online which will add to their convenience.
There are many advantages of taking a gold loan. Let’s have a look at them.
- Quick processing: Unlike other types of loans, gold loans is having quick processing. The person needs to keep gold as collateral with the bank of the financial institution. On the ground of the gold kept with them, the lender will lend money against it. keeping gold is the safest option, if the borrower is not able to repay the loan amount, the lender can sell off the gold to recover their damages.
- Pay interest only: The gold loans come with the unique feature in which the borrower only needs to [pay the interest amount first. The principal amount of the loan can be completed at the end of the tenure of the loan. This is a feature that is not available in any other loan.
- Low-interest rates: We all are aware of the fact that different types of loans come with different interest rates. But a gold loan is surely the one that comes with a low-interest rate for say 13- 14%. Rest all of the loans comes with an interest rate of 15% and more. Even if the person keeps more gold as collateral, the interest rate can be easily decreased.
- Zero processing fees: Many of the banks and financial institutions are not charging any sort of processing fees while sanctioning the gold loan. This feature makes it super easy for people to have the loan and when they require it.
- No-income proof requirement: In case, the person wants to get a gold loan, he/ she doesn’t need to have income proof. All other types of loans have these eligibility criteria to show income. But the gold loan is one such loan that does not have any sort of requirement. This makes it very easy for people to get this loan.
- No impact of poor credit history: In all other loan types, the credit history of the person is always verified. But in the case of gold loans, there is such formality done. The person will easily get the loan against the gold that he/ she keeps as collateral security.
In case of any sort of financial emergency in the family. it is highly recommended to get a gold loan in Delhi.