If we consider financially, a loan is the lending of money by one or more than one individual or organizations. The borrower incurs a debt and is commonly vulnerable to pay a hobby on that debt. It happens till it's interest is repaid and in addition to it, the main quantity or the principal amount borrowed is to be repaid. If anyone requires a loan s/he has to do a lot of paperwork and formalities. A lot and lots of documents are required generally. But, still, there may be chances that their loan may be rejected.
To avoid such tiring tasks you can avail a gold loan which is much easier and faster. A gold loan is a loan where a person gets some amount of money, according to the terms and conditions, for an eligible tenure, by pledging their gold as collateral to the lender. Hence, many times gold loans are also referred to as ‘Loan against Gold’. Gold loans were a convenient way of getting a loan even in ancient times as well.
Gold loans do not require too many paper works as compared to any other kinds of loans. Which makes it an easier and convenient process. Gold loans also do not require a credit score or what we usually know as a CIBIL score, which is another plus point. Gold loans are a much secured loan and generally have a lower interest rates (Gold Loan Interest Rates), which we usually do not find in any other loans like personal loans. The lender does the valuation of your gold on the basis of the present market rate of the gold and you usually get 60 per cent to 75 per cent of your pledged gold, based on its purity. So, it is advised to check for a better price for your gold.
Gold loans are provided by banks and NBFCs (Non Banking Financial Companies). The chief difference between the two is that NBFCs have much higher interest rates than banks. You can apply for HDFC Gold Loan,SBI Gold Loan it is one of the best suggested options.
Comments