Last Updated on November 17, 2022 by
Financial emergencies often knock at our doors unannounced and catch us off guard. It was extensively proved time and again during the Covid-19 pandemic. Most people were left grappling with financial losses and uncertainties due to enormous medical expenses and unstable incomes. In such times, when you need a way to quick funds, gold loans have time and again proved to be the saving grace for innumerable people. There are multiple reasons why a gold loan is a common people’s choice when it comes to arranging emergency funds. Here’s why you can opt for a loan against gold in your times of need:
– Acts as a Saving Grace
You may consider asking a relative or a friend for money during your tough times, but they may not be willing or capable to help you when you need it. Moreover, it may affect your relations with your close ones and put you in an undesirable situation. Another option you may consider is selling off your valuable assets such as gold jewellery or property. Chances are, you will not get the justified value for your possessions when you try to sell them in a hurry, and it would also deprive you of the future increase in their value. Instead of selling off your gold ornaments, you can consider pledging them with a trusted lender to get a loan against them, and you can conveniently pay back the loan and get your ornaments back.
Wondering how I can find a gold loan near me?
– A Stress-free Application Process
Since a gold loan is a secured loan, the process involved in sanctioning a gold loan is quick and easy. With a reputed name like Muthoot FinCorp, all you need to do is, walk into their nearest branch, submit the bare minimum documentation, get your gold valued, deposit your gold, and walk away with the best possible loan amount you can avail on reasonable interest rates.
Thinking about how I can find a gold loan near me?
– Low Interest Rates
Commonly people think of taking a personal loan during financial emergencies. However, personal loans are unsecured loans and come at a very high rate of interest, which may be as high as 25% p.a. Additionally, the eligibility of getting a personal loan is much more strict than a gold loan. A loan against gold is available at a lower internet rate and the eligibility criteria are also easier to meet. This happens because the lender has the security of the gold you pledge with them as collateral. In case of a default, personal loan lenders will not have any way to recover the losses, unlike lenders of a gold loan.
– Flexible Repayment Options
Muthoot FinCorp offers you flexible repayment opportunities, giving you the freedom to pay back the loan on terms convenient to you. They offer borrowers multiple EMI schemes, with different tenures. You can choose the scheme best suited to your other financial commitments and monthly budget.
– No Foreclosure Charges
Usually, lenders charge a hefty amount as foreclosure charges if you want to payback your loan before the decided tenure of the loan. This adds up to your loan cost. Muthoot FinCorp does not put any foreclosure charges on early pay back of the loan after three months of sanctioning the loan. This makes Muthoot gold loans even more attractive in difficult times when you are already trying to budget your finances.
– Low Processing Fee
Lenders charge a processing fee on the loan you avail of. This processing fee may be as high as 2%, which is a significant amount if the loan is of a high value. On the other hand, Muthoot FinCorp offers you gold loans starting at a processing fee of only Rs. 20, inclusive of GST, on some of its gold loan schemes.
– Minimum Documentation
The documentation required for a gold loan is very basic. All you need is identity proof and proof of income, and you can apply for a gold loan. Also, the paperwork required while applying for a gold loan is less, compared to other kinds of loans. This saves you precious time when you need emergency funds.
The various advantages gold loans offer over other kinds of loans make it a borrowers’ favourite whenever they need funds for emergency purposes. Finding the answer to ‘where to find a gold loan near me’?
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