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7 Reasons Gold Loan Proves To Be The Best Financial Solution

If individuals are going through financial distress and want to overcome the situation, a gold loan is the most reliable option that can help them to gain easy access to quick money.

Gold loans are a type of lending in which the borrower pledges their gold as collateral to the lender.

Why is a Gold Loan the best Financial Solution?

A gold loan is the best financial solution for an individual, let us see why:

  1. Fulfil Your Needs/Goals

People apply for gold loans mainly to serve their financial obligations. Gold loans are seen as one of the easiest ways to get cash during challenging times as it eliminates the need to sell your assets or have to borrow from friends or relatives.

Once you repay the loan amount, your precious asset will be returned to you.

  1. Simple and Quick Process

Getting a gold loan is very simple, and it is a quick process that can be completed from the comfort of your home. As soon as you submit the gold articles, your loan will be processed and the funds will reach you within a few hours. 

With Muthoot FinCorp, approval is immediate, and the money is processed within 30 minutes upon receipt of the documents required for gold loan

  1. Usage of the Loan Amount 

The loan amount granted against your gold can be used for any purpose, such as renovating the house, buying a car, wedding, education, medical emergency, etc. Lenders do not put any restriction on the usage of funds.

  1. Easy Eligibility Criteria 

Gold loans are available to everyone (salaried, businesspersons, etc.). You do not need a credit score or a repayment history for taking a gold loan. The approval of gold loan applications is decided solely on the value of the gold you have.

With Muthoot FinCorp, eligibility criteria are easy to meet.

  1. Minimal Documentation

Documents required for gold loans are minimal; therefore, it is an excellent opportunity for those who do not have a very good credit history. You will only have to provide identity and address proof as documents for gold loans.

With Muthoot FinCorp, documents required for gold loans are minimal.

  1. Lower Interest Rates

Banks and NBFCs charge a very low-interest rate for loans against gold. This is because they know that they will be able to keep your jewellery as collateral and collect the loan amount in total if you do not repay the loan. 

Usually, interest rates on gold loans range between 7.35% to 29% p.a. 

Muthoot FinCorp offers gold loans at attractive interest rates starting only from 6.9% p.a.  

  1. Gold is Stored Safely 

The gold is kept secure in a bank vault throughout the duration of the loan, and individuals get it back as soon as they repay the money.

Conclusion

India is considered to be one of the biggest markets for gold. The country’s growing affluence and culture are driving an increase in gold demand. 

Gold is believed to be a symbol of wealth and status and an essential part of many rituals in India. India’s rural population has deep empathy for gold because it provides security and is portable.

Thus, taking a loan on gold is a crucial decision that individuals make.

However, before taking them, you can consider the pros and cons. Take the loan amount, which you can repay quickly. 

Failure to repay the loan can lead to your gold being seized, which could hurt your credit score.

With Muthoot FinCorp, getting a gold loan is quick and hassle-free, at attractive interest rates, minimal documentation, and flexible repayment options.  

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