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A variety of loans are available to people today. The most popular loans are personal loans, education loans, car loans, and property/home loans. Aside from these options, you can also borrow against gold, silver, or platinum. Gold loans from NBFCs or banks are ideal for immediate expenses like quick family holidays, vehicle purchases, or medical emergencies. The following are the top 10 benefits of taking out a loan on gold from a financial institution via bhumifinance.com.

1. Instant processing and disbursement

You receive the loan amount from the financial institution once the gold jewellery is analyzed. Lenders keep the gold as collateral until the loan is repaid. Since the value of the gold depends on the spot, funds are available within days, sometimes within 45 minutes, reducing the processing and funds distribution process.

      2. Achieves your short-term financial goals

It takes 6 months and up to 2 years to repay the loan, so you can close it earlier than most other loans. A gold loan can also meet short-term financial needs and goals. Loanbaba offers long-term loans that are suitable for your situation.

   3. Borrow in thousands and lakhs

Personal loans and business loans under 1 lakh do not usually qualify. If you choose a gold loan, you can borrow from Rs. 50,000 to Rs. 50 lakhs, or up to 75 percent of the gold's current value. It means your gold assets can cover financial needs of all sizes.

4. We keep your gold safe and secure

A triple layer of security protects gold ornaments you submit as collateral. A bank vault will safely store the gold if the loan is repaid in full.

 5. Using the loan funds is totally up to you

People take out loans for investment, medical expenses, business expenses, wedding expenses, etc. There is no restriction on the purpose of loans. If the intent of the funds is legal and not improper, you can use the amount for an essential purchase, home repairs, vacation, etc.

  6. No CIBIL score, only basic documentation

Gold loans, however, require only minimal paperwork such as proof of identity and address and a passport-sized photograph, while personal loans and other loans are evaluated based on your credit score, your income, and income tax returns.

 7.Simple Eligibility Criteria

Gold loans are available to people over the age of 18. People over the age of 21 are usually eligible for other loans. When it comes to the best gold loan, your credit score or repayment history is not critical, but the value of your gold ornaments does. Everybody can apply for a loan, so even homemakers can do so if they have a good repayment capacity.

  8. A low-interest rate

Gold loans have low-interest rates compared with unsecured loans. Since the gold jewellery as collateral, the bank/NBFC will not lose the principal loan amount in case of default. Certain home loans have an interest rate as low as 10.5%, while personal loans start at 11.49-14%.

9. Low monthly outflow and flexible repayment options\

Generally, the EMI for a loan includes both interest and principal components. In contrast, the best gold loan scheme requires only interest repayment. You pay back the principal upon repayment.

10. The gold loan scheme

Women and farmers are eligible to apply for special gold loan schemes. Ask your financial institution if they offer special programs whenever you apply for a gold loan. Many lenders offer gold loans at discounted rates. The loan is also available to business people and small businesses.

An affordable gold loan can help you in times of financial crisis. Since gold assets increase in value over time, lenders are more likely to lend to you if they trust you. Our website allows you to apply for Gold Loan Online and receive funds the same day.