Financial issues will seldom inform before arriving. If we have learned anything from the last few months of the pandemic, it is that financial preparation is essential, and having a reserve is necessary when such times arrive. However, even if you don’t have significant savings to guide you through bad times, there are several methods through which you can ensure a steady flow of cash.
The rise of gold loans
As Indians, one of the most significant advantages we enjoy is that we have been collecting and investing in gold for centuries. Over the past few years, this investment has paid rich dividends since gold is considered appropriate collateral for taking a loan. Lakhs people have been exercising their new financial power and taking loans against gold for a host of different reasons -- from medical treatment to housing and from business to education.
Advantages of gold loans
The reason for the immense popularity of gold loans is that they come with a host of different advantages. Let us look at some of the primary benefits of taking a gold loan.
- Lower interest rates: Nearly every bank that provides gold loans does so at interest rates lower than those for conventional loans against collateral. These lower interest rates allow lenders to pay back over a wider range of time and borrow a lot more. The loan’s interest rate varies with the loan’s time period and the amount of gold you are taking the loan against.
- Instant finance: When you take a gold loan, the collateral you present is physical gold items that you own. As a result, the bank doesn’t need documentation or site visits to assess the value of your collateral. All that it needs to do is determine how much the gold you have brought to the bank is worth, and provide you a loan for that value. This ensures that the amount of time required for the sanction of the loan is minimal; it is generally less than a working day.
- Multiple payment methods: When you take a gold loan, there are several repayment methods that you can choose from. You can opt for the conventional EMI method, in which you repay a part of the principal and the interest at regular time periods. You can also choose to repay the interest at regular time periods and the principal as a lump sum at the end. You may also repay the interest as a lump sum at the beginning or the whole amount as a lump sum at the end.
- No questions asked: In general, you will not need to provide a reason for which you are taking the instant loan against jewelry. You may take the instant loan for personal needs such as a medical emergency or marriage. You may also take an instant loan for capital needs when you are starting a business.
- Lenient eligibility: The eligibility criteria to get an instant gold loan are not as stringent as those for a conventional loan. The income bracket you belong to, and your finances do not decide the amount you are eligible for and the interest you will be paying. The only determining factors for an instant loan are the amount of gold you have, its purity, and the period of time in which you are willing to pay back the loan.
- Documentation: The amount of documentation required for getting an instant loan against jewelry is minimal. A purity certificate for your gold items might be helpful. Otherwise, the finance company will assess the purity of your gold and determine the amount of money you are eligible for.
Looking to take a loan against gold?
If you need to take a gold loan, among the best options you have is provided by Shriram City. Shriram City Gold Loans come with a host of different benefits and features, which are listed below.
- Great rates of interest: Interest rates for gold loans start at as low as 11.5%. The processing fees for an instant gold loan from Shriram City can be as low as 0.1%. Also, the company provides you a flexible schedule for loan repayment so that the process can be seamless and free of any hassles.
- Maximum loan amount: Shriram City helps you to avail a loan for as high as 75% of the worth of your gold. This significant proportion not only helps in safeguarding against future fluctuations in the cost of gold but also helps you reap the most important benefits of your idle gold.
- Easy process: Shriram City asks you for minimal documentation in your endeavor to get an instant gold loan. All you need to provide while availing the loan is your Aadhar Card, a separate proof of identity, proof of address, and recent passport-sized photographs.
- Instant disbursal: The process of approving your gold loan is as simple as it can be. Within a day, the worth of your gold will be assessed, and the principal of the instant loan you are eligible for is communicated to you. Within minutes of approval, you shall find the amount in your bank account!
- Gold insurance: Shriram City guarantees that your gold is completely safe and sound in their custody. For your assurance, they also provide you with insurance for your gold.
- No financial requirement: Shriram CIty does not need you to provide your credit history or proof of belonging to a certain bracket of income. All they need is the value of the gold that you possess.
- Loan renewal: If you want to extend the period over which you will be repaying the loan, you are also provided with the facility to renew your loan. The company makes sure your financial and life goals are within reach and that procuring liquid assets does not become a problem for you in your journey.
- Life insurance: Your loan is secured not just by gold insurance but also life insurance. In case the loan applicant meets with an untimely death, the outstanding loan is paid off. Once this is done, the loan that has been retained as collateral will be returned to the family.
- Repayment options: With Shriram City Union Finance, you do not need to worry about how you will repay the loan. It offers you multiple options for the same, including those that do not contain EMI.
When the financial atmosphere is fluctuating and income is not certain, individuals and families can often face uncertain times. Lack of liquid assets can come in the way of achieving goals in such situations. To ensure that this does not happen, Shriram City Union Finance offers highly flexible and low-interest gold loans to help you get instant cash against your gold.