Business owners often face a situation when they require emergency cash; they can easily take out a loan against the gold. Most financial institutions offer gold loans at a desirable rate of interest. Gold loans can be sourced without any hassle. It can quickly come in handy where you require instant cash. Below are some of the benefits:
1. Minimal foreclosure fees: Some financial institutions and lenders don’t charge any amount or have minimal prepayment charges of around 1% on gold loans.
2. No requirement of income proof: In most of the gold applications, income proof is not asked to be shown by the borrower since the secured loan is against the gold, which the borrower itself pledges.
3. Instant loan: The borrowers can quickly get funds. They are further to use the Gold Loan Eligibility Calculator for knowing the amount of the loan which needs to be availed.
4. Rate of interest: The rate of interest loans a gold loan differs from one financial institution to another. Some offer very attractive gold loan interest rates, which depend on some factors such as the purity, value of your gold ornaments.
5. Easy documentation: The documentation procedure for availing of a gold loan is very convenient compared to a personal loan. You have to submit your KYC documents such as income proof, identity card etc., which are readily available. This is one of the primary advantages of availing of a gold loan.
When any business owner takes a loan against gold, then the submission of EMI repayment data is made to the CIBIL at different intervals, so the update of your credit score is done in the credit report. So, it is recommended to make timely payment of your bills and EMIs.
Follow These 5 Tips to Get Secure Gold Loan
The individuals who generally apply for gold loans are looking forward to covering their financial urgencies. But then it is easy to fall when you know about the gold loan rate per gram. Here are the top 5 tips which can guide you:
1. Examining your lender’s credibility: If you are applying for a gold loan, it is regarded as a way of pledging the gold to your lender for a certain amount. The lender possesses the right to retain your gold until the borrower has fully paid the loan.
2. Consider all the available options and choose accordingly: There are a lot of lenders available in the market to offer gold loans. Every lender has different terms as well as conditions. Therefore, you should assess and accordingly.
3. Understanding the importance of your gold: The financial institutions don’t accept gold coins or gold bars over 50 grams as collateral security. If your jewellery constitutes gemstones, then its value isn’t calculated. So be aware of the purity and the value of the gold.
4. EMI options: You should be aware of all the available options in which you can repay your loan.
5. Partial Repayment: One of the fascinating characteristics of the EMI structure is that it can be customised. This allows the repayment of the principal for lowering the interest. It is very suitable for business owners as well as big companies.
Every kind of loan carries some rate of interest. A home loan rate of interest is relatively cheaper than a personal or gold loan. Since the former rate is around 0.5% – 1% higher in comparison to the home loan rate of interest. The gold loan interest rate is between 10% to 28%.