This article is all about the various categories of gold loans and the numerous purposes gold loan has to do with various types of fields. At the end of the article we will briefly tell you the various categories where the gold loan can be used, so stay tuned and let’s get ahead.
One thing to remember is that gold loan is not always taken just for the sake of financial needs or wants. There might be various uses of gold loan and it’s completely the borrowers or the customers choice on what they wish to use the gold loan for. Now, let us briefly look at a few of the categories of the gold loan in various banks and how they are put in use when the borrowers and customers get sanctioned with the gold loan from the respective banks.
For instance, let us consider a borrower has been applied and approved a gold loan from Bajaj finance gold loan, and now let us consider the various categories where this gold loan can be used in.
Gold loan for Agricultural purpose These type of gold loan mainly for agriculture are applied by the farmers in large number, and when this gold loan is approved it can be of major help for the farmers to achieve the purchase of their raw materials for the crop production, maintain their capital, proper maintenance of the lands, to purchase the required machinery and to hire the works and pay them wages accordingly. And as the farmer's income is lower when compared to other professions, hence the banks and the non-banking financial companies offer these kinds of gold loan with relatively low-interest rates, so that the repayments can be made easily and they can enjoy the benefits of the loan. And the tenure period offered starts from 1 month onwards and can last up to 24 months.
Gold loan for Medical emergency Gold loans can be taken on a safer side for medical emergency purposes because we cannot predict this type of emergency. When the gold loan is taken for this purpose it can be used to pay the medical bills, bear the hospital expenses, pay the doctors fee, etc. These loans can also be used when some kind of sudden surgery has to be done and also can be used for medical tourism purposes. Things to consider are, these medical loans can be slightly high that is the interest rates will be more compared to the agricultural loans.
Gold loan for Weddings Weddings can have a lot of pressure on the families to cope up with the high expenses which include the cost of accommodations for the guests, to book a wedding hall in advanced, the cost for the dresses and pieces of jewellery, and if it’s a destination wedding in that case the travel expenses will also be high. Therefore, when a gold loan is taken for the wedding, all the above-mentioned cost factors can comparatively be easier to pay for and the wedding can take place without any troubles.
Gold loan for Higher Education This type of gold loan is one which has increasing demand every year and this is because most of the students opt for their higher education in universities which have very high tuition fees and these are mostly the abroad colleges and universities which are preferred by most of the students. When a loan is taken for higher education, it can make the process easier by providing money to pay the university fees, the cost for the accommodation of the student, and can also make the travel a bit easier.
Gold loan for travelling Everybody wishes to travel and explore now and then, but travelling can come with a certain range of high costs and prices and therefore most of them drop out. But when a gold loan is granted it can also be used for the travelling purpose of an individual as it will help them with the cost of ticket booking, hotel or the room accommodations etc. Therefore most of them opt for a gold loan in advance before they plan a trip or wish to explore.
These are few of the popular categories of the gold loan.
Comments