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Gold Loans

8 Benefits of Gold Loans You Can’t Ignore

Are you in dire need for cash? Instead of selling off your gold ornaments, a better solution might be to opt for a gold loan.

Let’s have a look into the benefits of gold loans:

Faster Processing

It is easier and faster to get gold loans as they are backed with your precious metals. In case you default, the lender has the option to sell off your gold. Lending against gold is safe for the lender which makes the processing quick and easy.

No Processing Fee

There are some places where processing fees are not charged, thanks to the gold being put up. The lender will check the quality of the gold and give you instant cash without hassle. However, some banks do charge processing fees, but most reliable gold lenders don’t.

No Proof of Income Required

Gold loan lenders won’t ask you for proof of your income. The gold you brought gets used as a security deposit for your loan, easing worries they may have.

Credit History Not Required

Gold is used as collateral. Therefore, unlike other loans, credit history and repayment capability of the borrower is not checked. If the borrower is unable to pay the loan repayments as agreed, then the collateral (that’s the gold) is seized by the lender to recoup the loss.

Low Interest Rate

Secured loans, like gold loans, have a low interest rate. This is one of the main reasons why gold loans are preferred over regular loans.

Flexible Interest Rate

Attach a collateral security with gold and your interest rate will go down. In other words, the higher the security deposit for the loan, the lower is the interest rate charged.

Pay Interest Only

This is an exclusive feature of gold loans, where the borrower can get away paying the interest only, while the principal sum can be paid back at the time of loan enclosure.

No Debt Trap

If you are unable to prepare the loan amount, then you are not caught in a debt. Just ask the lender to keep the gold jewelry and terminate the loan agreement.

Instead of keeping your gold safe in your locker or at home, seek a ‘gold loan’ if you’re in a bad financial spot position. Several banks and lenders will be willing to provide you with instant cash for gold. Make use of this opportunity to get yourself back on your feet.

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