9 Reasons Why You Should Take Gold Loan
Gold is an important asset class that has fascinated humans for centuries. Even the central banks hold large reserves of gold against their currency. It gives you a fair idea of the importance of gold as an investment. Gold is an appreciating asset, its value increases with time. Most people possess gold in some quantity as jewellery or coins. Gold is usually not sold unless the reasons are very compelling. How do you utilise the idle gold lying at home in an emergency? Assuming you do not have any other liquid assets to spare, can you look at gold as an option to raise funds? No, we are not talking about selling your precious jewellery. However, you can apply for an instant gold loan by using your gold as collateral.
Benefits of Instant Gold Loan
There are several reasons to consider an instant gold loan when the need for funds arises. Any Indian citizen or resident between 18 and 70 years of age is eligible to apply for an Instant Gold Loan. Let us analyze a few important ones.
- Putting idle assets to good use
- Lower interest rates
- Quick loan in minutes
- Minimal paperwork
- Flexible repayment plans
- Safety for your collateral
- Encrypted systems that provide data privacy
- No impact of low credit scores
- Great customer experience
Putting Idle Assets to Good Use
An Instant Gold Loan helps you put your idle gold to good use in the case of an emergency. The gold loan process is simple. Instead of borrowing from family or friends, you can mortgage your gold to get a loan for your business, children’s education, medical emergencies etc. Once you pay off the loan with interest, you can get back your gold.
Lower Interest Rates
As secured loans, Instant Gold Loans are available at low-interest rates. Gold Loan interest rates are quite reasonable. Hence, it becomes more appealing to go for a cheap gold loan at around 8-12% per annum compared to paying 15-24% on unsecured personal loans. If you have gold lying unused at home, this is the best way to use it. Similarly, you can resist the urge to swipe your credit card for big-ticket purchases. Credit card companies charge 2.5-3% per month when gold loans are available at as low as 0.67% per month.
However, selection of lending partners is extremely important for a customer to not fall in the trap of jumping interest rates. These loans are available at very low interest rates (0.35 to 0.50% p.m.) but with a jumping interest rate which means the customer ends up paying something in the range of 15-24% i.e. the same as a personal loan.
At SahiBandhu, we value our customers and offer loans without any jumping interest rate. So what you see is what you get.
Quick Loan in Minutes
Instant Gold loans are processed in quick time. Once you fill in the details on the SahiBandhu website, an officer will visit your home. He will complete the gold valuation and documentation. Once the documents are verified the gold will be placed in a tamper-proof sealed bag and the loan disbursement will take place. The gold will then be deposited in a bank branch nearest to you.
Unlike other loans, gold loan processing is simple. It does not involve complicated paperwork. As gold is offered as collateral, documentation regarding valuation needs to be completed. In addition, the following documents would be needed –
- Passport size photograph
- Identification proof – PAN Card, Aadhaar Card, Driver’s License, Passport/ Voter ID/ Ration Card (Any one of them)
- Address Proof – Aadhar Card/ Voter ID/ Driving License/Utility bills not older than 3 months/ Lease Agreement
No further documents are required.
Flexible Repayment Plans
You can get the best gold loans from lenders like SahiBandhu. They offer a slew of customer-friendly repayment plans. Depending on your convenience, you can make the interest payment on a monthly basis and repay the principal at the time of closure. Alternatively, you can repay both interest and principal in a single instalment at the end of the loan tenure. A third option is to take an overdraft gold loan where interest will be charged on a monthly basis depending on the usage.
Safety for your collateral
When you apply for an Instant Gold Loan, choose a trusted lender. Since you will be handing over your gold to them as collateral, you would need to confirm the safety precautions taken to protect your asset. At SahiBandhu, several steps are taken, to ensure the safety of the gold and provide peace of mind to the customer. The gold is valued and sealed in your presence in a tamper-proof pack. It is stored in the strongroom of your nearest bank branch. Whenever you close the loan, your gold is returned intact to you. When you book an appointment with SahiBandhu, the picture and details of the executive are shared via SMS. You can match the same with the ID shown by the executive to confirm authenticity.
Encrypted systems that provide Data Privacy
All digital platforms need to maintain the data privacy of the customers. Gold lenders adhere to these regulations as well. SahiBandhu has secure encrypted systems to protect the customer data which are collected via paper /digital mode. The information regarding the gold collected from customers is also stored securely.
No Impact of Low Credit Scores
Unlike personal loans, where CIBIL score plays an important role, it is not a very important parameter in case of instant gold loans. Since gold loans are secured loans, the need to have a decent credit score does not arise. The loan is backed by the gold provided. In case of a default, the gold can be sold to pay off the loan.
Great Customer Experience
Getting an Instant Gold Loan is so easy in the digital age. You can call SahiBandhu on 1800 309 8440 or request a callback on the website. A SahiBandhu executive will reach your home, value the gold, complete the documentation and disburse the loan after depositing the gold in the safety vault of your nearest bank branch. In case of an emergency, this could be a real saviour as you do not have to depend on anyone else. Once the loan is repaid, you can get back your gold. So, you do not have to move from your seat to get a gold loan, literally!
To Wrap Up
Instant Gold loans are a convenient mode to raise funds. They are easy to process and require minimal documentation. There are no demands of a decent credit score since the loan is backed by gold. Moreover, it gives you a good opportunity to make use of the unutilised gold lying at home when you need funds for an important purpose. Instead of opting for more expensive personal loans or credit card debts, it is prudent to obtain a loan against the gold. SahiBandhu offers convenient instant gold loans and charges the lowest gold loan processing fees in the industry.
You can visit https://sahibandhu.com/ for all information regarding the Best Gold Loans, and we will be glad to assist you.< Fixed Vs. Jumping interest rate gold loan: Which one is better for you?Five hacks to save money on your gold loan >