Top Benefits of Gold Loans

by Jeremy Thompson Web Marketer

Gold loans are an effective way to get fast cash if you are in dire need of money. We all possess gold items which can be exchanged for a good amount of money in times of need. These moments may include aid toward a child’s education, a medical emergency, down payment for buying a vehicle, starting a new business or its expansion. You can cash-in your valuables with banks and non-banking financial companies, and take-out loans. This is the quickest and most hassle-free way of getting cash.

This blog post by Oren is Better outlines more benefits associated with exchanging gold for fast money.

Instant Processing

Whether you make the transaction with your bank or an NBFC, they will hold your gold and credit the loan amount to your bank account within a few hours. Sometimes the process can take as little as forty-five minutes. The loan is only approved once the value of the metal is evaluated properly. The institution you work with will keep the gold until the loan is repaid. Therefore, the processing and disbursement time is less, unlike other types of loans.

Short-Term Financial Assistance

If you’re in need of fast cash due to an emergency or travelling purposes, you can benefit from this loan as it’s the best for short-term financial needs. The repayment term also ranges from six months to two years. This means you can close the loan within this time frame, according to your convenience.

Safe and Secure

When you hand over your gold to the bank or NBFC, they use triple layered security to keep it safe and sound. The gold will be kept in their vault throughout the term until the loan is repaid.

Easy Eligibility Criteria

If you’re above eighteen, you are eligible to apply for this loan. The approval of this loan depends on the value of your gold jewellery or other items, not your repayment history and credit score. Also, this type of loan is granted to a wide demographic of professionals and economic backgrounds.

Lower Interest Rates

Financial institutions charge a very low-interest rate for gold loans. This is because they hold your possessions as collateral if you’re unable to repay the loan. For instance, some banks offer rates as low as 10.5%, unlike personal loans starting at 11.49 to 12% or higher.

Flexible Repayment Options

With a gold loan, you have to pay the interest until the loan tenure and the borrowed amount at the end of the loan period, whereas for other loans,you have to pay the interest rate and the principal amount together.

No Processing Fee

There are many financial institutions that don’t charge any processing fee. They take the gold and it is held as collateral by the lender.

No Need of Credit History

As mentioned, the gold you exchange is collateral so there is no need for checking credit history or repayment capability.

Convenience

This loan type doesn’t require major documentation or any fee to process it. As long as the gold passes the evaluation and the value is determined by experts, the loan is granted by the bank or any other financial institution in a few minutes. This makes it convenient for people in need of fast cash.

If you are looking for a fast, interest-free loan, consider bringing your gold to one of the reputed gold buyers in Toronto, of which Oren is Better is one of the leading names. Reach us for instant gold loans or cash for gold.