When emergencies enter our life, they don’t come with explicit details; instead, they bring more uncertainties and questions into our life. This period of life can stay for a short or long period. These situations demand a permanent solution so that they do not become recurring. In these circumstances, where the immediate attention of the individual or entity is required, the gold loan can save the day by providing funds within 45 minutes.
The yellow metal that people usually get as a gift for a loved one or many a time as an investment can be utilised to solve the cash crunch faced by them. The features of this facility are as glittery and alluring as the shine of this metal. The rise in demand for the yellow metal has continuously increased over the years irrespective of the fluctuation in the prices.
With the consumer being more aware, gold loans have established a good market in the past few years. A gold loan is simply a loan against gold provided by the financial institutions (banks and non-banking financial companies). It is a secured form of a loan. The lender’s risk in this credit facility is comparatively lower; this means the gold loan interest rate is affordable. Here, the gold is pledged as a security with the lending institution and the lender disburses funds based on the current loan-to-value ratio of that particular lender. Manappuram gold loan facility is a good option as the borrower can get instant cash and has further options to select from within the facility.
The tenure is reasonable and as per the borrower’s convenience. The tenure is usually 12 months, but it can be extended if or when needed. The borrowing individual or entity has to be cautious about the tenure as the interest rate might be low but paying back the total credit amount can be difficult if it is during a shorter tenure as the monthly installments will be higher in this case. Any delay in the payment will attract a penalty, and any default can call for legal action against the borrower.
The collateral pledged by the borrower will be auctioned off by the lending institution if needed. The borrower has to be prepared for any uncertain situation that might occur after the amount has been disbursed. A person who is very sure about repaying the amount within stipulated time should go for a shorter tenure; otherwise, a longer tenure should be preferred.
Whether or not there is an urgent situation, a gold loan can be used by the borrowing individual or entity as per their convenience. The lending institutions provide the utmost comfort to the borrowers, and the borrowers have to make sure that they provide the collateral with the underlying documents on time to avail of the funds. Gold loans can be a knight in the shining are more for those who need funds at short notice and without going through any lengthy procedure. This is a facility that can help people in their good as well as bad days.
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