Special Features of Gold Loans That Everyone Should Know
In India, gold is considered a symbol of prosperity and has also become an important financial asset. Many people invest in gold as a hedge against inflation or as a means of diversifying their investment portfolio. But what many people may not know, is that gold can also be used as collateral to secure a gold loan.
Gold becomes crucial during financial emergencies in India due to its versatility, liquidity, and ability to act as a store of value. Individuals can use their gold jewelry as collateral to borrow money, which is especially helpful during emergencies where quick funds are necessary. Additionally, gold prices tend to rise during economic downturns or inflation, making it a valuable asset to hold during such periods. Overall, gold can provide much-needed financial assistance and a sense of security during uncertain times. In this blog, we will discuss some of the key features that everyone should know.
Special features of availing of a gold loan
Loans against gold offer a range of special features that make them a unique and attractive financing option for many individuals.
- High Loan-to-Value Ratio:
One of its main advantages is that it offers a high loan-to-value ratio (LTV), which means that you can borrow a substantial amount of money against the value of your gold. The LTV ratio can range from 60% to 90% depending on the lender and other factors such as the purity of the gold and the prevailing market conditions.
- Quick Disbursal:
Another advantage of loans against gold is that they can be disbursed quickly, often within a few hours of submitting the necessary documents. This is because the lender does not need to assess your cibil score or income as the gold acts as the This makes gold loans an ideal option for those who need urgent funds to meet unexpected expenses or emergencies.
- Low-Interest Rates:
Gold loans are also popular because they offer lower interest rates compared to other types of loans such as personal loans or credit cards. This is because gold serves as collateral, which reduces the risk for the lender. As a result, borrowers can enjoy lower interest rates, which can help them save money in the long run.
- Flexible Repayment Options:
Loans against gold also offer flexible repayment options, which can help borrowers manage their loans more effectively. Depending on the lender, borrowers can choose from different repayment options such as EMI-based repayments, bullet repayments, and overdraft facilities. This allows borrowers to select a repayment option that best suits their financial situation and repayment capacity.
- Minimal Documentation:
Compared to other types of loans, loans against gold require minimal documentation, which makes the loan application process quick and hassle-free. Typically, borrowers only need to provide identity proof, address proof, and proof of ownership of the gold.
However, it is important to carefully consider the terms and conditions of the loan agreement and select a repayment option that is most suitable for your financial situation and repayment capacity. If you are considering getting a gold loan after weighing the various special features, you may be worried about selecting the best gold loan provider. Let us help you find the best one based on your needs and preferences.
Why is SahiBandhu the Best Gold Loan provider?
SahiBandhu aims to empower people by providing them with access to affordable and convenient gold loans. We work for the financial inclusion and economic growth of the underserved areas of India.
We have set up branches across India, providing borrowers with a convenient and accessible way to access financing. Our branches are equipped with modern facilities and staffed by experienced professionals, ensuring that borrowers receive a high level of service and support. We also offer a doorstep facility to avail of gold loans so that the borrowers do not have to go through the hurdles of finding and locating a branch.
Apart from these, SahiBandhu offers competitive interest rates, making it an affordable option for borrowers. Additionally, the instant and efficient loan processing system allows borrowers to receive their loans within 30 minutes. This is particularly important during financial emergencies when borrowers need quick access to funds.
We also offer flexible repayment options, such as SahiMax, SahiDelight, and SahiFlexi, which provide borrowers with various options to repay their loans, depending on their financial situations. Let’s have a detailed look at the repayment options available.
- SahiMax: In this mode of repayment, you only can repay the monthly interest and the principal amount at the time of the loan closure.
- SahiDelight: It is a single repayment mode which means you can pay interest and principal amount at loan closure.
- SahiFlexi: It is an overdraft of gold which means you can pay monthly interest as per usage.
This makes it easier for borrowers to manage their repayments and avoid defaulting on their loans.
Another reason why SahiBandhu is considered the best gold loan company is its focus on customer service. The company has a dedicated team of customer service representatives who are available to assist borrowers with any queries or issues they may have. This ensures that borrowers receive a high level of customer service and support throughout the loan process.
Finally, SahiBandhu gold loan is committed to maintaining transparency and ethical business practices. The company provides borrowers with clear and concise information about their loan terms and conditions, ensuring that they fully understand the loan agreement before signing it. This transparency and ethical conduct have helped SahiBandhu to earn the trust and loyalty of its customers.
SahiBandhu’s flexible repayment options, competitive interest rates, efficient loan processing system, focus on customer service, and commitment to transparency and ethical conduct makes it one of the best gold loan aggregator platform in India.< Does settling your loan affect your CIBIL score?Different Method of Repaying Your Gold Loan >