What are the advantage of a Gold Loan?


When you go for a gold loan you are basically using the liquidity of gold to its fullest. You need a short term loan and don't wanna get involved in keeping your property, shares or any other asset as collateral, well the answer is gold itself. Super fast processing and interest rates as low as 7.5% is too good of a deal. The best part is that there is no catch to avail of the loan. If you are above the age of eighteen and can provide sufficient documents supporting ownership of the goal, you are good to go. For centuries gold has been providing people with financial freedom by serving the purpose of being both a valuable asset and highly liquid at the same time. You take the gold to the bank with the supporting documents and you get a quotation for the amount you can avail a loan for depending upon the quality and quantity of gold and you’re done, That’s it. The loan amount which would be including your principal amount and the interest that the bank is charging for the loan will be divided equally into EMI’s (Equated Monthly Installment) for the tenure customer and bank have agreed upon and after the last payment of EMI the loan would be over and the gold is returned back to the customer 100% in original condition. This way a person doesn’t feel insecure in having their fixed asset as collateral for a short term loan and still arrange the funds needed by him.

In India, one might have heard elders saying that they are saving the gold for their daughter’s marriage or her education. What they mostly meant  by that is they are most probably gonna sell the gold off when the time comes because they are unable to arrange large amounts of funds in such a short span of time. But instead if they opt for the gold way which is availing a loan against gold they can have the short term capital needed and also still be the owners of their gold. For example, SBI Gold Loan provides for gold loans valued upto 50 lakhs with a mere interest rate of 7.5% per annum, lowest amongst it’s competitors. Not only do they accept gold bars or coins but also gold ornaments too with the guarantee of safety against theft or damage of the gold. Low rate of interest, faster processing and minimal documentation being the motto here. On the other hand when a person keeps the gold as collateral with some private lenders, they charge huge interest rates and a very informal procedure which might look normal at the time of availing the loan but might cause trouble way down the road. The private lender may charge you ethically in the name of various up-charges and wont be able to provide full security of the loan. A gold loan from a financial institution trusted by millions of its customers might be a suitable option for you.These days banks are even offering lower interest rates for existing customers and special interest rates for farmers to uplift agricultural sector in our country.Also the facility of availing loan facility at your doorsteps at your ease to promote loan against gold for the the benefit of the customer.

Many a times people encounter some situation in their life where they need funds for a short period of time but don't want to stake it all for getting those funds. Answer might be availing a loan against gold, may it be for investing or some emergency. Gold loan gives people the freedom to use the liquidity factor of gold to its fullest without losing the possession right over the gold. The flexibility of repayment and ease of procedure makes gold loan not only a viable option but also the most preferred one.