Reasons to Choose Gold Loan for Urgent Cash Needs

Gold is known as one of the most valuable metals in India. It holds significant value and gains huge capital appreciation over time. However, one of the advantages of this precious yellow metal is that it can be used to fulfill any urgent financial needs. It could be many ranging from children’s education, medical cost, down payment for a vehicle purchase, business set-up, etc. So, if you need urgent cash, you can think about using your gold ornaments that are lying idle in the locker. At present, there are many banks and NBFCs, offering gold loans at attractive interest rates. A gold loan is easily accessible and can be attained hassle-free whenever there is a requirement for urgent cash. Here are a few more reasons why you should pick a gold loan for urgent financial needs.

Fast Processing

Other loan types come with the tedious documentation process and extended processing time, making them unpractical options for a person in need of urgent cash. One of the most attractive aspects of a gold loan is, that it comes with quick processing and disbursal. You only need to submit some KYC documents, and most banks and financial institutions do not take more than a few hours to approve the loan.

No Credit History Required

In other types of loans, the banks and lenders check the credit history and score of the applicant first to decide the amount and approval as per the repayment capability and credit score of the applicant. However, a gold loan does not need a borrower’s credit history. In the case of gold loans, you have to submit the gold items as collateral to banks to get the required money. It makes the gold loan secured for lenders as well. Thus, they do not depend on the credit history of the applicant.

Low-Interest Rate

As gold loans are secured loan types, banks and financial institutes charge reduced interest rates on them, unlike other loan types. Borrowers who can submit additional collateral can ask for further reduction in interest rates.

These are a few reasons to apply for a gold loan for the urgent requirement of cash. Make sure you check the eligibility terms and gold loan per gram rates before applying for a loan from a specific bank or lender.