Gold loans are gaining popularity as an increasingly favoured investment choice for many compelling reasons. In a world of financial uncertainty, gold distinguishes itself as an enduring and tangible asset endowed with intrinsic value.
Its historical reputation for stability and its capacity to hedge against economic fluctuations are well-established. Gold loan through a gold loan app presents an avenue to capitalize on the worth of one’s gold assets, granting swift access to funds without the necessity of credit assessments or protracted approval procedures.
Furthermore, the straightforwardness and adaptability of gold loans render them an enticing selection for individuals seeking both short-term financial liquidity and a secure repository for their wealth.
What is a gold loan?
It is a secured borrowing option where individuals offer their gold as collateral to get the required funds, where the appraised value of the gold provided determines the loan amount.
The borrowers find it attractive because it enables quick access to funds, requires significantly less documentation and offers lower interest rates because of their secured nature.
A Gold loan is a collateralized loan that involves keeping gold as your assets while borrowing. The lender sees these loans as reliable because gold is a mortgaged item.
Why is a gold loan beneficial?
- Quick and easy disbursal
They have an easy and understandable application and approval process. The loan is based on the borrower’s collateralized gold, so the lenders approve and extend their credit offers, making the process faster than other unsecured loans.
- No credit history
You do not need a credit check because these loans are secured by gold collateral, and loans are given quickly based solely on the asset offered, making them accessible to many borrowers.
- Low-interest rate
Gold loan interest rate is relatively lower because of its secured nature and no risk to the lender.
What are the different gold loan rates and charges?
Additional charges on gold loans can vary depending on the lender and the terms of the loan agreement.
- Processing Fee
Lenders charge a processing fee to cover the administrative costs of evaluating and disbursing the loan.
- Valuation Charges
Lenders might charge a valuation fee to determine the value of the gold as collateral.
- Late Payment Fees
Lenders may charge late payment fees or a penal interest rate if you fail to make your loan payments on time.
- Prepayment Charges
Some lenders charge a fee if you want to repay the loan before the tenure ends.
- Insurance Charges
Some lenders might require you to insure the gold, which you could be responsible for the insurance premiums.
How to calculate gold loan interest rate?
You can calculate the interest rate through a gold loan calculator on all websites and any gold loan app. This makes assessing all the inputs that help you make an informed decision.
It helps you calculate a precise interest rate, repayment instalments and term of the loan selected after going through the details and determining a plan matching your financial requirements.
How to avail of a gold loan?
A month ago, I was in immediate need of funds and decided to avail myself of a gold loan from the Bajaj Finserv app as suggested by my elder sister. It is user-friendly, and its interface makes navigation easy across the platform. You, too, can avail of one by following the steps given below:
- Download the Bajaj Finserv app on your Android or IOS.
- Sign up with your mobile number
- Under the ‘Products for you’ section, tap on Gold Loans
- Proceed further as per your requirement
Conclusion
In a continuously evolving investment landscape, gold loan stands as an illustrative example of how time-tested assets can be tailored to address the challenges of contemporary finance, rendering them an enticing choice for individuals and investors alike.
Furthermore, the straightforwardness and adaptability of these loans establish a secure sanctuary for wealth, effectively bridging the gap between time-honored practices and modern financial necessities.
