You save consistently to build a corpus to reach your important financial goals. You often surprise your family members with gifts, thanks to that yearly bonus. You have been toiling hard to take your business to new heights. In any situation, you never shy away from doing what’s best for your family or business. But sometimes with the cashflow getting adversely affected due to emergencies like the Coronavirus pandemic, financial stress can become an unavoidable reality. In such times, easy credit support can come handy to get your life and business back on track.
Why is Gold Loan the Best Choice?
Among all the types of loans available, Gold finance is one of the most viable options. In today’s time, it is even easier to get access to instant gold loans as the process to apply for gold loan is felicitated online. What makes gold loans such an attractive credit source? We take a look at six important reasons.
1- Quick Application, Quick Approval
Gold loans can be a blessing for those who are looking forward to raising quick capital or funds. The approval process is incredibly fast. At leading NBFCs like the Muthoot FinCorp, the entire process hardly takes any time. All you need to do is to carry your gold to the nearest branch, get it evaluated (just takes a few minutes!) and you are good to go. From the gold loan interest rate to the tenure options available to the terms and conditions, the representatives at the branch are thoroughly trained to guide you at every step of the journey.
2- No Cumbersome Paperwork
Collecting documents especially crucial ones like your income proofs and income tax returns can be an extra task, especially when a lot is happening in your business and life and you are pushing yourself to fix things. Gold loan eliminates the need for such kind of proof as the yellow metal itself is considered as the collateral.
3- No CIBIL Score? You’re Welcome
Gold loan is not dependent on your credit score – the famous three-digit number that gives an indication of your financial health. No matter where you are placed in the 300-800 range of the CIBIL score, you can apply for a gold loan. Good, bad, poor – it doesn’t matter. Remember this is not possible with other loans like a personal loan or a home loan. To avail of those loans, you have to have a good CIBIL score. Now, isn’t gold loan a much better alternative? We bet; your answer is an emphatic yes.
4- Repay Early. No Rigid Rules.
Another kind of loan usually comes with hefty prepayment charges, rigid tenures, and too much paperwork. Since gold loans are preferred by people of all income levels, lenders offer freedom when it comes to repaying the loan early. With Muthoot FinCorp, you are given the choice to repay it in 36 months (long tenure) or if you wish, you can even repay it in just one day after taking the loan. All this without any pre-closure charges. This is clearly a massive advantage for anyone who wants flexibility in borrowing money or repaying it.
5- Safe. Just Like Your Lockers.
Once you submit your gold as collateral to the lender, it is completely safe, just like it stays in your lockers. But unlike the lockers where you end up paying some maintenance charges every year, the gold loan lenders don’t charge you any extra fee for safely storing your precious ornaments. Your gold is completely safe with the gold loan company. Since it is anyway lying dormant in your locker and you’re paying for the maintenance, it is pragmatic to use it for managing the financial emergency.
6- Gold is Shining
In the current markets, gold can fetch you a great price. And hence, also a better loan amount. The investments you did all these years in buying gold can easily pull you out of the financial woes.
How Much Gold Loan Per Gram Can You Get?
While the gold loan rate is dependent on the market trends, the amount of gold loan you can get is often dependent on a few variables, like the amount of gold you want to pledge to the lender and the tenure you’re choosing. With Muthoot FinCorp’s easy-to-use gold loan calculator, you can get an approximate idea of how much money will you get in lieu of your gold.
Since a gold loan is one of the fastest loans to get approved and gives quick access to credit, you should consider it as the most feasible option before thinking of other loans.