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A loan against gold is a credit facility you can immediately avail by pledging your gold articles as collateral security in return for cash. This type of loan is mainly taken if one has high and urgent financial requirements, like severe cash crunch and what not. Gold loans are more preferable to personal loans or credit cards due to various reasons. They do not involve the chaos and delays in the processing of loans, do not charge additional processing fees, and are easy to handle.
Furthermore, the interest rate on gold is often lower, which grants the borrowers the benefit of easily opting for such a loan by just issuing their gold articles. The only documents you will require are KYC documents, which make opting for gold loans a piece of cake.
In this article, we have provided everything you need to know about the gold loan so that you make the most of it in no time. Keep reading to find out more and get ready to be amazed.
Why Should You Opt For A Loan Against Gold During Financial Stress?
If you are undergoing a financial crunch in your personal or professional life, opting for gold loans will be the clear-cut choice for you. So, if you wish to find out more about the reasons as to why you should surely go for such a loan, relax and take a look at the various points we have provided for you below. Also, do not forget to check out the gold loan rate before opting for the right loan.
1.Does Not Involve the trouble of Gathering Several Documents
One factor you should consider while opting for a gold loan is that you do not have to face the problems of submitting various documents. All you need are your KYC documents, and you are good to go.
2.Brings You Straight To The Point
Opting for a loan against gold will be a wise option as it does not involve long delays in the processing and granting the loan. Sometimes, you can even walk in with your gold articles and walk out with the required cash in a matter of minutes.
3.Low Interest Rate On Gold
The gold loan rate while opting for such a loan is often lower. It also does not involve huge processing fees or additional costs.
The interest rate of loans against gold is not a matter to be concerned about since the current rate offered by SBI is 7.5%.
The interest rate on gold offered by NBFCs is 12%.
4.Gold Loan Is Always Preferred Over Personal Loan
Since personal loans involve high processing fees, long delays in granting loans, they are usually preferred less than gold loans. There is also no need for your credit score, as it does not determine your loan approval.
The Bottom Line
If you wish to opt for a loan with a low-interest rate on gold, make sure to read the various reasons provided as to why you should opt for gold loans at the earliest.