Since ancient times, Indians have preferred gold as a wealth-building instrument. Gold holds significant cultural value in our country apart from its investment value. It is considered a symbol of prosperity, and no auspicious occasion is complete without gold. Be it weddings, festivals, or the arrival of a new child, gold finds a constant place and mention. It's no wonder that India is one of the largest importers of gold globally.
However, do you know that gold can also be a source of instant funds apart from its capital appreciation value? Yes! We are talking about Gold loans!
There might be situations like a health crisis, education expenses, starting business ventures, purchasing vehicles, etc., when the time is short, or the eligibility criteria for any other loan are not met. For such cases, Gold loans are “golden” solutions.
Let's have a look at some benefits of a Gold loan:
With the Gold loan, you do not have to wait for days to get your application assessed, approved, and loan disbursed. Since it's a secured loan, where physical gold is available as collateral with the bank and they need not worry about the loan going as NPA, the processing and disbursal become significantly easier and faster.
The lender will only ask for your KYC documents to process your Gold loan. Since it is backed by collateral, you do not have to submit any income proof or credit history. This makes it a much easier and hassle-free process.
Since it's a secured loan, the interest rates are lower than other unsecured loans like a personal loan. At Shriram City Union Finance, we offer simple interest rates, starting from 11.5%, with a flexible repayment schedule.
This is one of the many unique features that Gold loan offers. You may keep paying the interest component during the loan tenure and pay the principal towards the end or during the loan’s closure process.
In almost all unsecured loans, lenders check the borrower's repayment capability and credit history to grant the loan.
However, the Gold loan is not dependent on credit history since the lenders have physical gold as collateral, and hence zero possibility of the loan turning NPA.*
But, here is the surprise: Gold loans can help you improve your credit score if you pay all your instalments on time.
*NPA: Non Performing Asset. A loan or advance for which the repayment remained overdue for a period of 90 days.
Keep your gold safe and, at the same time, get funds against the metal. Most lenders provide a loan of value up to 75-80% of the gold value. We, at Shriram City Union Finance, guarantee complete safe custody of your gold and also provide insurance cover for the same.
At Shriram City Union Finance, the disbursed amount of Gold loan is secured by a life insurance cover. In case of uneventful demise of the borrower, insurance pays off the outstanding loan amount, and the gold that is kept in custody is given back to the borrower’s family.
Most banks and NBFCs charge around 2.5% processing fees on personal loans. Likewise, home loans and auto loans attract considerable processing fees. However, Gold loan processing fees are mostly zero since borrowers instantly provide gold as collateral.
Gold loan do not attract any foreclosure charges, which, in the case of personal loan or home loan, can be as high as 4%.
Most lenders also provide a loan renewal facility.
Min Age: 18 years
Maximum Age: 60 years
Who can avail: Salaried, self-employed professionals, business owners, and other individuals
Gold loan has numerous benefits, as discussed above. As lenders, we also love this loan because it's a hassle-free and secured loan. We do not have to worry about the loan not being paid and turning into an NPA since we have the physical gold as collateral.
Apart from that, providing quick financial assistance to every customer in need without depending on their credit history or repayment capacity gives us next-level satisfaction as a financial solutions provider.
At Shriram City Union Finance, you secure a Gold loan in a few minutes. With the lowest interest rates, fastest loan disbursal, and minimum documentation, Shriram City Union Finance is the best option for a Gold loan.
To check our calculator and complete details about the Gold loan at Shriram City Union Finance, Click here.