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Benefits of taking a Gold loan in 2022
Indians' love for gold metal is inseparable. Whether a person is a man or woman or he is wealthy or from a middle-class family, almost everyone is fond of gold. So, Indian people like accumulating and preserving gold in their locker. Gold is also seen as a status symbol so people like wearing gold jewellery at family functions or during festivals.
Gold other than being a status symbol, it is also valued for its significant source of generating capital. Anytime you may require an emergency fund for medical expenses, education or business purposes, that time gold is an excellent option which can provide money.
The gold metal lying in your locker is an asset which can be a strong weapon during a financial crisis. But it's necessary to understand how you can get financial funds against gold. In this article we will discuss loan on gold and benefits of taking gold loan.
What is a Gold loan?
A loan in which a customer pledges his gold valuable materials as a security against the loan amount is known as a gold loan. You can pledge the gold for mortgage in any one of the following forms that can be gold jewellery, gold coins or gold bars.
How does the gold loan work?
As from the name you can come to know that gold loan means loan is given against “Gold”. The borrower needs to deposit a certain amount of gold to the lender for a specific period. The loan amount depends from lender to lender depending on the policies of the bank.
When you take gold articles to the lender it will be evaluated, meaning your gold items weight and purity will be checked. Once the gold evaluation is done you will be asked to fill a loan application form. With the loan application form you need to submit some basic identity verification documents. Once all the procedure is completed successfully the loan amount will be sanctioned and disbursed to your bank account.
Benefits of taking loan against gold:



1) Quick Processing: Processing of gold loan does not take much time, because loan is given against the value of gold pledged by the borrower. So, the process is done quickly with evaluating gold and verifying identity proof documents.

2) Low interest rate: As gold loans are secured loan banks or non -banking financial institutions charge low interest on it. And if you take a personal loan the rate of interest is relatively higher.

3) No income proof needed: Various loan applications require income proof of the borrower. But in the case of gold loan income proof is not compulsory. So, non-salaried people like housewives can also apply for the gold loan.

4) Low credit history not an issue: For personal loan banks or non- banking financial institutions check the credit history of the borrower. To verify will the person be able to repay the loan amount on time. Whereas, in a gold loan borrower’s credit history doesn’t matter. As loan is given against gold, and in case the borrower fails to repay the loan amount then the lender can auction the gold items to recover the amount.

5) Physical gold security: When a borrower mortgage gold items with the lender, from that second it becomes the lender's responsibility to keep gold safe. Generally, gold is kept safely in the bank vaults till the principal amount of loan is repaid.

6) Minimum processing fees: Some banks or non-banking financial institutions do not charge processing fees or else charge less fees. Because as said earlier gold loan processing does not require much time.

7) Higher loan value: In unsecured loans such as personal loan, loan amount is decided based on credit history of the borrower. If the credit history is low, the borrower can’t get a larger loan. But in the case of gold loan, loan value is decided based on the value of gold. If a borrower has a sufficient amount of gold to take a high amount loan, he can get it.

8) Instant amount transfer: Gold loan is the fastest loan compared to other loan options. During an emergency when you don’t have enough time to wait to acquire money, a gold loan is the best option. Once the process is completed the loan amount is instantly transferred to the borrower’s bank account.

Why are gold loans better than personal loans?
If you want money for extreme emergencies like medical purposes, business purposes or for education, that time a gold loan can save you. Because if you think of a personal loan you have to go through a long process then only the loan application will be approved. On the other hand, personal loans interest is higher than gold loans interest. And if you have gold lying in your locker why not use it during an emergency?

Nowadays applying for a gold loan has become very easy. You don’t need to visit a bank or non -banking institution to apply for a gold loan. Through apps or websites, you can apply for a loan within sometime. Or some financial companies like Augmont Goldtech Pvt. Ltd provide gold loan service at customers' doorstep. You just need to apply for a gold loan through Augmont’s website or app, after that their gold loan manager will visit at your place to do all loan formalities. So, you don’t have to take a risk of stepping out of your house with the gold items.

These are the benefits you will be getting if you think of taking a gold loan for any financial requirement. Gold is the best metal which can provide money during difficult situations. But always take any financial decision after gathering proper knowledge of it.


My Website: https://www.augmont.com/gold-loan