Friday, December 2, 2022
gold loan

How is a gold loan better than other loans?


India is one of the countries with a craze for gold. Our families have been seeing gold as a good type of investment for generations. Some of the gold even gets passes on to the next generations and it is also a custom in many traditions. This is a great form of investment and now it is easier to get a loan on it. The gold loan is provided by several banks and in the past few years, it has also been possible to complete the process through online mode by getting the gold loan payment online. It is the most beneficial form of loan and this is great when you need some extra cash in an emergency. 

There are many benefits of taking a gold loan, let us take a look at some of them:

  1. Fast process: The bank that provides you with the loan, needs collateral. In the case of a gold loan, the gold itself is collateral so the process is done faster as the bank gets an assurance that the lending process is going to be safe as they can always seize the collateral they already have and it is considered a safe option. Therefore, the processing time for this is lesser compared to other forms of loans.
  2. PIO option: The banks provide their customers with a pay interest-only option, where the customer gets to pay only the interest amount during the tenure and after the tenure is complete the customer can pay the principal amount. In this way, the loan taker gets enough time to collect the money and pay the loan on time. also, if you need some money for any purpose, you can get it and won’t have to worry about the instant repayment of the loan.
  3. Lower interest rate: The gold loan provided by the bank has a quick and simple process, not just this it also has a lower interest rate so it is better than the other loans as the increment is not much than the principle amount so if you take a loan for personal necessities it is a great option and if you are having some financial issues, then you can always exchange gold as with the lower interest rate you get the benefit of handling the finances in a better way.
  4. No credit history: When you take a gold loan, you have the benefit as you will be providing the collateral. There is no need for a credit score in this case and even if you don’t have any income proof you will be eligible for the gold loan. Even if your credit history is bad it won’t be a hurdle in the process so a gold loan is always a great option.

So, you should consider getting a gold loan which would be better than the other forms of loan but before that, you can do research on the gold loan amount per gram and choose the best gold loan, providers. 

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Habib Kazi is a General Blogger & writer who has been an expert in the technology field for a few years. He has written several useful articles which have provided exciting and knowledgeable information on Finance, Business, Construction, Tech, Travel, and Sports.