With the increase in expenses, the requirement of urgent money can arise at any point for personal or business use which can lead you to opt for a loan. An instant gold loan is one of the easiest and quickest ways to seek financial assistance in such circumstances. Instead of locking your gold in lockers, you can use your gold investment in a difficult time. Gold loans are secured loans which means you have to keep an asset like gold ornaments or jewellery as a mortgage.
You can apply for an instant gold loan at Muthoot Fincorp for any urgent financial need. To avail loan against gold, you only have to put your gold as a mortgage. Once the loan amount is returned, including interest or charges, your gold ornaments or jewellery will be returned. We can provide you with attractive offers on gold loans ensuring that you get the best deal out in the market.
Benefits of applying for an instant gold loan
There are many benefits to getting an instant gold loan. Some of them are explained below.
- Upto 70% of your gold value or Rs. 20 lakh: Based on the quality and eligibility of the applier, one can get upto 70% of their original gold value or Rs. 20 lakhs.
- Rate of interest: Interest rates provided on instant gold loans are less as compared to a personal loan. For example, the rate of interest on a personal loan may vary between 25%-30%, but gold loans are available at a low-interest rate of 11%. These types of loans are better than private loans as the interest rate on personal loans are not standardised and can vary from provider to provider. Also, a personal loan provided is based on the various factors of borrower like salary, purpose and profession.
- Repayment tenure: Many gold loan providers offer a repayment period of 48 months to the customers eligible for a gold loan. You can customise EMI’s according to your ease so that it does not become a burden on your budget.
- Security: Lenders understand the need for the safety and security of their customers’ gold. They always ensure that customers’ gold is well protected until the loan is paid off. As instant gold is a type of secured loan, so the risk of default and credit loses are significantly less as compared to other kinds of loans. Instant gold loans come with lower interest rates and risks than other loans.
- Easy accessibility and multiple options: In an economic crisis like this, almost everyone is short on money and need some financial aid. Gold loans are easily accessible as there is less paperwork involved which provide hassle-free sanctioning of the loan. A borrower can also choose from multiple choices according to his/her needs.
Apply for the right reasons
Most people apply for goal loans for reasons such as repayment of an existing loan, unexpected needs or any other reason. Often, a borrower applies for gold loans as a bridge loan or the down payment of significant expenses such as a home or car. You should avoid getting a gold loan as margin money because then you will have to pay two loans at the same time, which can create a burden on your monthly budget. In case you need a large amount of money, and you know you will not be able to repay two loans, then it is better to sell gold.
Conclusion:
Gold has become more and more expensive over the past few years. It is one of the best options to borrow money in a financial crisis. It comes with the rate of interest as low as 11%, which makes it better than other types of loans. One can get upto 70% of their gold’s value as the loan amount. The repayment tenure is also flexible, which means you can choose your loan tenure according to your ease. Many lenders are available in the market, which lends money at different interest rates and loan period. Choose the one that suits and fulfils your needs.
