Are you looking for a safe and secure borrowing option? If yes, gold loans are the way to go about it. Believe me or not, accepting gold as a mortgage has been prevalent in India since ancient times. They are easy to get, and the process is relatively more straightforward than any other loan.
You can now borrow using a gold loan app, saving you the hassle of physically visiting a financial institution and giving you the convenience of managing your finances in the comfort of your home. They are the easiest and the safest way of getting a quick loan, especially at the time of emergency.
What are gold loans?
Gold loans are collateralized loans that involve keeping gold as your assets while borrowing. The lender sees these loans as more promising because of the involvement of a mortgaged item, making it a secured loan.
In this type of loan, the borrower guarantees their gold as security, and you can retrieve your gold once you have paid back your monthly instalments. It is a terrific option to meet your urgent financial needs.
What are the benefits of availing gold loans?
● No credit score
You don’t need a good credit score to avail of a loan from a gold loan appas it is a secured loan, and you can mortgage your gold items in exchange for money, with the option of getting it back once your repayment is completed.
● Easy and simple to avail
It requires minimal documentation as the lenders are satisfied with the mortgaged asset and do not ask for a long-drawn application procedure; they are more than ready to lend and approve the loan amount.
● Relatively liquid
Gold loans are relatively more liquid than all the other loans, so if you require instant cash and are looking for a loan, this is the right choice. The nature of your loan does not matter, and it can be health, home, car or any other.
● Low-interest rate
Gold loan interest rateis relatively lower because of the nature of the given loan. This is because there is no risk involved, and the only risk is borne by the borrower, which would be losing the gold pledged, so lenders have no reason to charge a high-interest rate.
● Regulation and valuation
These loans are regulated by government entities that have implemented strict rules and regulations to protect the rights of borrowers and lenders. The advancement in technology has led the whole process to be transparent and has made its valuation easy.
How to calculate gold loan interest rate?
You can calculate the interest rate through a gold loan calculator on all websites and loan apps. This makes it extremely easy to assess all the factors that help you make an informed decision.
It gives you a precise interest rate, repayment instalments and tenure of the loan that can be selected after going through the details and matching it with your financial needs.
Which is the best gold loan app?
I have used the Bajaj Finserv app for all my financial needs for the past year. It is user-friendly, and its interface makes navigation easy across the platform.
Furthermore, this application is the only one that is easy to understand and operate. Here, you can apply for a gold loan within minutes and get it approved with minimum documentation.
Conclusion
The evolution of credit has seen it all, with gold being a constant throughout, right from ancient times to the modern, it has been of help to people with immediate financial needs. The liquidity it offers is commendable and makes borrowing accessible to many people. With the introduction of new technology like the EMI calculator app, the whole process has become a cakewalk!
