14-Jul-2020
Muthoot FinCorp NCD bonds June 2020 – Invest 1 Lakh and get 1.6 Lakhs in 5 years – What about risks?- Home
- About Us
- Product & Services
- Investors
A credit score is the numeric summary of an individual’s credit history, mainly issued by the credit agency CIBIL. It is a three-digit number that ranges between 300 (poor) and 900 (excellent) in India. Lending institutions primarily use this credit score to decide on a loan application approval or rejection. Such rejections impact the credit score negatively. It would be best if individuals could keep their creditworthiness sound to avoid loan rejection conditions.
Generally, most lending institutions approve a loan with a credit score of 650+. If a lender approves a loan application with a low credit score, it tends to have a high risk of default. Therefore, lenders tend to reject the application. However, there is still a possibility that the loan can be approved. If an individual meets the lender’s defined loan eligibility criteria, a lender can offer a gold loan at a high-interest rate.
There are many ways to help borrowers build a sound credit history and increase their credit score. A gold loan can also help improve the credit score since it is an easy loan with minimal eligibility conditions.
What is a gold loan: A gold loan is a secured loan. Lending institutions do not ask for a high credit score to approve a loan. Just pledge your gold to get funds credited to the account.
The lender checks for the purity of pledged gold, and the loan will be sanctioned easily. It can be repaid in easy repayment tenure. There is an option for payment of the interest-only and pay the loan amount at the end of the loan tenure.
Such easy loans can be repaid easily without skipping any EMI. It adds to an individual’s creditworthiness and increases credit score with a good credit history.
A high credit score supports the borrowers in the following way:
Thus, any individual can fulfil sudden or planned financial needs with easy gold loans and positively add to the credit score.
Gold Loan Interest Rate – ‘Mera Gold Loan, Mera Interest’ with Virat Kohli Read More
Harshit Agrawal 2022-04-25
Difference Between Gold Loan Vs. Loan Against Property Read More
Harshit Agrawal 2022-04-18
The Complete Overview Of Gold Loan Renewal Read More
Harshit Agrawal
Which Is Better? – Gold Loan With Overdraft or EMI Read More
Harshit Agrawal 2022-04-14
Explore funding options with our low interest rate Gold Loan Schemes Read More
Harshit Agrawal 2022-03-26