Discover 3 Key Benefits of Taking a Gold Loan
- harshitbansal440
- Oct 18, 2023
- 2 min read
Gold is the most valuable possession that people hold in their households. It has monetary and sentimental value, especially in Indian households. It also works as a reliable asset for people who need to borrow urgent funds. Taking a loan against gold is a quick and easy solution for scenarios like sending your children to study abroad, funding your child’s marriage, paying hospital bills, etc. The interest rate can vary significantly depending on various factors. Muthoot gold loan per gram rate Today, like many other reputed non-banking financial companies. Mentioned below are some benefits of taking a loan against gold.
Higher Loan Amount
Since gold is a highly-priced asset you can get good value against it. However, its price keeps fluctuating so its value changes as well. Nevertheless, the price of gold is always on the higher side. When you take a loan against gold, you are offered the amount based on the loan-to-value (LTV) ratio. A person can get up to 75% of their gold’s value as a loan provided the purity of gold is 22 Karat.
Competitive -Interest Rates
Since gold loans are secured loans many lenders offer gold loans with lower interest rates as compared to personal loans. Your providing collateral as gold to your lender makes it a low-risk credit. So, gold loan interest rates usually start from a favorable range such as 8.5% p.a.
Instant Credit
The best part about taking a gold loan is that there is no extensive documentation. All you need is your KYC documents to get this loan. It has very easy paperwork requirements which you can check out on the official website of the lender you choose to get a loan from. People who take a gold loan do not have to go through long verification processes. The procedure for taking this loan is faster; the only condition is that the purity of your gold must be up to the mark.
Gold loan lenders have competitive rates so negotiate for the best interest rate and choose a shorter loan term with favorable terms and conditions.
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