Making Best Use of the Gold Loan Funds

 

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In life, many situations can come up when you may need some extra funds to support your financial needs, even if you have ample savings and a well-thought-of financial plan. If the monetary demand isn't high, you can borrow money from a family member or a friend; or sell additional assets to get an immediate cash infusion.But the best option is settling for a loan through a trusted and renowned financial institution. You can opt for either an unsecured loan like a personal loan, business loan, etc., or go for a secured loan like a home loan, auto loan, or gold loan. Secured loans can be availed at lower interest rates than unsecured loans, and they are more prevalent in the financial domain. 

All the loans serve the purpose of helping you financially during tough times, but in terms of speed, convenience, and uses, a gold loan is the best choice; an all-in-one package. Tamilnad Mercantile Bank Gold Loan is considered an excellent option for gold loan in the state of Tamil Nadu because of the following features - 

  • Lower interest rates as compared to other similar loans.

  • No need for unnecessary additional documents.

  • Can be availed online

  • Quick disbursal of the loan amount.

  • No need to maintain a steady credit score.

  • Adjustable loan tenure

  • No restriction on end-use of the gold loan amount.

Since a gold loan is provided based on the value of the asset, in this case, gold, it does not take other external factors like income, type of employment, etc., into consideration. The main focus is on the physical asset, and the amount and interest rate are influenced solely by the market value of the gold ornaments. You can avail gold loans for several purposes, and you can use those funds without any limitations or questions. Some of the well-known uses of gold loan funds are - 

For funding your or your child's higher education: Several universities and institutions provide education loans to students to cover expenses like tuition fees, accommodation fees, textbooks, and other miscellaneous costs. But there are certain limitations on education loans imposed by the lenders like, and the authorities do not recognize some institutions in India or abroad. Loans will not be sanctioned if the student is admitted to one of these colleges. The lenders also keep minimum income criteria before issuing education loans. In the case of Gold Loans, no such restrictions are there, and the funds can be used for any activity while studying abroad.

Loan for vehicles (cars or two-wheelers): For auto loans and two-wheeler loans, the applicant must provide a set of documents for the application approval. But for a gold loan, not even proof of income or employment needs to be provided, and the loan is approved without any trouble. The amount from the gold loan can be used to buy a small car, a bike, a scooter, or an SUV, be it new or second-hand.

Medical emergency: If a mishap occurs and there is an immediate need for considerable funds to pay medical bills or tests and hospital beds and ICUs, then gold loans can act as a savior. A personal loan can also be taken for such a situation, but a gold loan is a better option as it is more economical and gets sanctioned much quicker than a personal loan (within one day).

To start a small business: Many people have the skills and ideas to make their business successful, but they lack the necessary funds and monetary help from external sources. A gold loan will solve that problem by providing the money to finance the initiatives like a gym, or boutique, or even a cafe.

Other uses: Many times, you may need funds for multiple purposes, which require less money individually but can be a financial burden if done collectively. So gold loans can help you fund a remodel of your home, repair your car, or even go on a big trip. 

Conclusion

With the availability of gold loans online, you can quickly get the best deals by comparing the various rates and offers of numerous lenders and finalize the most suitable offer that suits your repayment capability and does not affect your savings in the long run. There are many advantages of gold loans, like lower interest rates and high LTV ratio, that ensure that the borrower gets the most out of the gold value. 

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