Indians are famous for their love of gold around the globe. India is among the largest importers of gold around the globe. Gold is thought to have significant value , and is also an asset that can provide capital appreciation for the future. Many people are unaware that gold can also be used to fund any emergency cash demands, like medical costs, children's education and business start-ups as well as a down payment for car purchase and even the annual holidays with family.

You can use the gold in your vault at the bank to assist you when faced with a problem that requires immediate cash. Nowadays, many banks and non-banking financial companies (NBFCs) provide gold loans. These loans are extremely beneficial and can be obtained quick if you have an immediate cash need. You can get loan against gold and could have in any kind including gold coins, jewellery or gold bars.

Here are a few of the main benefits of loans against gold:

Quick Processing - Because gold loans use physical gold as collateral, banks and other lending institutions are able to provide these loans. Gold loans are safer for banks since they are able to sell the gold if the borrower fails to pay. These loans are usually disbursed in a matter of hours by banks. This allows for quicker processing, and thus greater convenience for the customers.

Option to pay only interest Some gold loans include an option to allow the borrower only to pay the interest portion of the loan. The principal amount can be paid at the end of loan tenure or at the time of closing formalities for the loan.

A Comparatively Low Interest Rate Because Gold Loan near me are secured loans, banks charge an interest rate that is lower in comparison to loans that are not secured such as personal loans. The interest rates for gold loans can range between 13 and 14 percent. On the other hand, personal loan interest rates usually range between 15 and 15 to 15%. For those who are able to offer additional collateral for their loans, the rate is further reduced by the bank.

Zero Processing Fees: A lot of banks and NBFCs don't charge processing fees for gold loans. The bank is the one that holds gold collateral in addition to the loan.

Minimal Foreclosure Fees lenders and banks don't charge prepayment charges for gold loans.

The applicant doesn't need to provide proof of income. provided - Lenders rarely require proof of income to be able to approve the application for a gold loan. The loan is secured by the borrower's personal gold pledge.

There isn't any impact from a low credit scores - The majority of loans are made based on the borrower's ability to repay the loan amount and their credit history. But this isn't the case with loans made in gold. Since gold is used to collateralize the loan, lenders are sure that the principal component will be repaid and do not have to depend on credit histories.

Security of Physical Gold The obligation of protecting the physical gold is the responsibility of the lender. The vault at the bank is the place where the gold is stored which means that borrowers don't have to be concerned about it. After they have repaid the loan, the gold is returned by the bank.

Conclusion

Although gold loans are very easy to obtain, borrowers must make sure they pay back the loan in time. If this is not feasible, the gold may be forfeited to the bank. Customers can obtain a loan from a gold lending firm of their choice as the disbursement process is generally fast and simple.