Gold is an existing asset that can be used by the population to avail gold loans, which carry a low rate of interest and can be repaid in various methods easy for the borrower. It does not require any collateral or income proof and can be availed by anyone who has sitting gold and needs urgent funds. It is a way to get loans that do not affect your credit score and do not require income proof and a person can even apply for a gold loan online. An individual can check the important aspects of a gold loan by using the facility of a Gold loan calculator online.
Some situations of financial crisis when a gold loan can benefit an individual are given as follows:
Repayment of Credit Card Debt:
High-interest Visa obligations can put weight on your funds and make it hard to arrive at your monetary objectives. At the point when you convey a spinning Master card balance, you're paying accumulating revenue on buys you've effectively made, which is a costly method to get cash.Refinancing credit card debt using a gold loan can save you money with potentially lower interest rates and easy repayment methods.
Home Improvement:
Home renovations can increase the value of your house and make it a better place to live. Many kinds of loans can be used for home improvements, but the hassle-free methods and lower interest rates of a gold loan, when compared to a personal loan, are quite advantageous. For example, Capital Small Finance Bank Gold Loan calculator is good method to calculate interest rate and provides an interest rate of 7% and it can be disbursed within 48 hours whereas the same bank’s loan carries a rate of nearly 12% and requires a long and tedious process to disburse the amount.
Making a Large Purchase:
Since gold loans can be used for virtually anything, some borrowers can use them to make large purchases. Like when suddenly an appliance breakdown happens, and a person does not have instant money, they can anytime just get a gold loan and pay it later in easy installments. A gold loan can also help you make ends meet in case of an urgent purchase.
Buying a car or Repaying an auto loan:
You can use a gold loan for buying a car, but for even repayment of a car loan, the main advantage of a gold loan being a much lower interest rate. Money can be borrowed against the gold which would be used to repay the auto loan and the gold loan can be repaid at a much lower interest rate and it does not require the car to be used as collateral, which would eventually benefit the borrower.
Paying off medical bills:
Right now, during the covid scare, gold loans can come in handy for most populations as they can even help to repay heavy medical bills. Bill piles up very quickly and can become difficult to pay off. A medical loan can be an option but the advantages of a gold loan are dominant and can help the borrower.
Covering Business Expenses:
Personal loans are not offered for helping businesses but the gold loan can be very helpful in this situation. Borrowers do not have to risk their credit score and their businesses also remain safe from the lenders as the only collateral, the gold is already held by the lender.
Wedding Expenses:
As stated gold loans can be used for virtually anything, that also means it can be used for wedding expenses. Weddings in India have the potential to put an individual under debt, at those times a gold loan can come in very handy. As weddings do not have a mainstream financing option and it has been established that gold loans are better than personal loans, they can be used.
CONCLUSION
A gold loan is a very quick way to establish money and can help different individuals in different times of financial crisis or expensive occasions. It is preferred over personal, auto, or business loans and sometimes is the only way of finance. Borrowers are not declined of the money like in other cases and it is in a whole a tension-free process.
Comments