When is it a Good Idea to Take a Gold Loan?

With the availability of various kinds of loans in the market, it becomes difficult for people to choose the best one. Gold loan, however, can be used for a variety of purposes. By definition, gold loan or loan against gold is a special type of loan where the borrower collaterals his/her gold ornaments in order to secure a loan. Gold loan is provided by both banks and NBFCs. A lot of people are interested in gold loan due to the fact that gold is one metal which enjoys great capital appreciation. 

Gold loan provides you with instant cash against your gold jewellery. So if you possess gold ornaments and want immediate cash, taking a gold loan from one of the best gold loan companies in India is your safest bet.    

Let’s understand the conditions when opting for a gold loan is the best idea:       

Unlike other kind of loan, gold loan provides you with instant cash. So if you immediately need to buy something, you can simply apply for a gold loan. After your application gets processed, the bank or NBFC (where you applied for the gold loan) will call you to deposit the gold jewellery with them. Depending upon the market value of the gold, the institution will credit the amount in your account instantly against the gold you have deposited. This greatly reduces the processing and fund disbursal time.

If you have any short term financial requirements, there is nothing better than a gold loan. The normal tenure of gold loan ranges from 6 months to 2 years. This implies that this loan can be closed earlier as compared to other types of loans. 

People who want to take a loan of less than 1 lakh can’t go for personal or business loans. However, with gold loan, you have got the much-needed flexibility. So whether you want to take a loan of Rs. 50, 000 or Rs. 50 lakhs, gold loan is at your rescue. While the former is suitable for fulfilling short term financial requirements, the latter fulfils your long-term financial requirements.     

All in all, gold loan is one of the most affordable credit facilities available in India. The only thing you need to remain careful with gold loans is the type of institution you are choosing. There are tons of ways to check the credibility of an institution offering the gold loan. Some of these companies also offer other online financial services like forex exchange so you can easily buy forex online in India and save yourself the from last-minute hassle. 

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