Financial emergency? Go for gold loan!

If you are going through a financial crisis and are in urgent need of cash, you can go for a gold loan if you have gold jewellery or gold coins with you. There are many advantages of taking a gold loan instead of taking a personal loan or any other type of loan. Let us understand why gold loan is a better option.

A gold loan is a secured loan and, therefore, the rate of interest charged on gold loan is lower than other types of loans, such as personal loan, credit card loan, etc. The processing of gold loan is quite fast as there is minimal documentation required to be done and the loan can be disbursed within a few minutes to a few hours after submission of the application for loan. The lender does not ask for any guarantor as gold is a good collateral security, nor does he ask for income proof or look at your credit score.

The amount of loan will depend on the value of gold offered as collateral and the loan amount can be as high as 80%-90% of the value of gold. The repayment tenure of gold loan can range from few weeks to 5 years or more, depending on the lender and the requirement and repayment capacity of the borrower. By availing the gold loan, the borrower retains the ownership of the gold jewellery and ornaments and avoids selling the family treasure to raise money. The gold jewellery is returned by the lender to the borrower after the borrower repays the principal amount and interest thereon in full.