Ancient history has always mentioned Gold being one of the best mediums of barter and also used as currency. In India too, people would quantify their wealth using gold. Today, the demand for gold is not strictly limited to savings and using it for wedding purposes. Now people in India use it for multiple uses and one of them was of taking gold loans.
Whether it is Tier 1, 2 or 3 cities, everyone now understands how important and beneficial it is to take a gold loan and satisfy your needs and expenses. There are many Banks and NBFCs that offer attractive gold loans. This credit goes to a majority of factors that have influenced gold loans in India. These factors are,
This is one of the most secured loans available where you don’t have major eligibility to fulfill when compared to other loans like personal and business loans where you need to show income proof, job proof, banking proof etc.
When you pledge your gold with the Bank/NBFC, there is a high possibility that you can get up to 75%* of the gold value as the loan amount. Hence your gold can be help when you need a higher amount to deal with emergencies.
Gold loans can be repaid anytime. Here you are allowed to repay quickly and in full within a month of taking the loan. The only thing you need to be cautious about is the prepayment charges which differ from bank to bank.
You don’t need many documents like other types of loans here nor do you need a good credit history. All you need is your basic identity proof details and gold.
This is also a multipurpose loan where you can utilize the loan amount in any way possible. This is not possible in many loans like business loans, home loans, car loans and mortgage loans.
Finally, you can be assured of safety if your gold of the highest level as financial institutions provide a lot of security to gold. Hence it is a win win for you since you not only get a gold loan but also get a safe and secure place for your gold.
With these 6 factors, gold loans are gaining a lot of demand in the Indian market. So if you need a loan to clear many expenses or settle an emergency, applying for gold loans will help you get the loan amount quickly.