Why GOLD loan always act as a SAVIOR?

1
Why GOLD loan always act as a SAVIOR?
2
There are many reasons why someone might need a
loan. It can be to invest in a start-up or share
market, to purchase a new car or property,
students might take it for paying their tuition,
or just for other personal reasons. When taking a
loan, the person is required to submit something
as a mortgage, usually property papers in bank
loans. This is to ensure that the lender does not
go into loss in case the borrower is not able to
pay it back.
A gold loan is nothing but a kind of a loan where
gold jewels or ornaments are given as a mortgage,
and the monetary value of the gold is lent as a
loan. The ornaments can be collected back once
the loan amount is returned (with interest).
Meanwhile, they stay in constant protection of
the loan lending company.
3
There are many advantages of taking a gold
loan over taking any other loan. Gold loans
usually have much lower interest rates than
regular loans. There is usually pressure on the
borrower by his family to get the familys gold
back as soon as possible due to the possible
ancestral significance hence it makes the lender
feel more secure in lending money in exchange for
gold jewelry, thus making the loan obtaining
process easier. Unlike other loans, the lender
does not ask for your credit score or your income
proof while giving the loan, reducing the time
wasted in getting the documents right. And since
the entire process is legally documented, the
borrower does not need to fear any theft either,
as long as the loan is borrowed from a recognized
company. The gold remains secured with the
company for no extra charge.
4
Moreover, there is no processing fee in case of a
partial return of the loan before the decided
time period. The borrower can return a part of
the loan money and collect back the equivalent
value of the gold ornaments he earlier submitted
as a mortgage if needed. Since gold jewelry is
worn on certain occasions and at other times is
kept in secure locations at home or in a locker,
a gold loan gives the option of keeping the gold
safe while also getting equivalent money with
low-interest rates that can be repaid at any time
to collect the gold back.
This flexibility makes gold loans a much better
option than regular loans. In certain situations,
this flexibility of gold loans can even act as a
savior for both the borrower and the lender. The
lender can sell the gold in case the loan is not
paid back, while the borrower can pay back the
money to collect his gold at any time as per need.
5
Naturally, the interest rates, the amount of
flexibility, and the documentation needed all
depend on the money lending company. Still, the
points mentioned above are something commonly
observed and practiced by companies giving gold
loans. Therefore, it can be concluded that when
possible, and when the situation needs it, going
for a gold loan instead of a regular loan can be
a savior
6
THANK YOU
Address 912, Indra Praksh Building, 21-
Barakhamba Road, New Delhi 110001 Call us at
011-40078601 /2/3/4/5, 9289905548 E-mail us
basant.indiaa_at_gmail.com For more visit
https//www.basantfinance.com