Gold loan is considered a more convenient financial product when compared to most other secured and unsecured funding options. This is primarily due to the several features and benefits accompanying the secured loan option.
In fact, as per our view, taking out a gold loan is an effective way to access cash by leveraging the gold lying idle at home.
But how can you make the most of this funding option?
It’s simple! Find out about the secret features of the product that manifest as - gold loan benefits for borrowers.
Take a quick look below to understand what we are talking about!
7 Top Gold Loan Benefits – At a Glance
The most popular benefits of gold loans are discussed below. Take a quick look to find out how can you benefit from them:
1. Low-interest rate
Compared to unsecured financial products, the gold loan interest rate is relatively low. This offers borrowers the opportunity to save a substantial amount on interest payout and ensures a low cost of borrowing. To ensure more savings on cost of borrowing, compare the gold loan interest rate levied by different lenders and select the lowest one with the most benefits.
2. Lack of dependence on credit history
You do not necessarily need to possess a credit history to apply for a gold loan, which is often not the case for other loans. In fact, most loan application approval depends heavily on the applicants’ credit history and CIBIL score. However, the case is different for gold loan borrowers because applicants provide gold as collateral to access funds.
3. High loan quantum
A gold loan is probably among the best options if you wish to access a high loan quantum. Some leading financiers can sanction up to 75% of the gold item’s value. Thus, providing access to a substantial loan amount.
4. Limited additional charges
One of the top gold loan benefits is that it does not accompany multiple charges. In other words, most leading financiers levy a nominal foreclosure or processing fee charges on gold loans. This allows borrowers to manage and repay their debt as per convenience, without incurring additional charges.
5. Simple documentation
Most other loans accompany thorough documentation, which often delays the verification process. However, you do not need to worry about that with gold loans. To apply for a gold loan, applicants need to submit only the basic documents such as KYC documents, proof of identity, and proof of address. Since the list of documents is short, the overall process does not take long to complete.
6. Quick processing and disbursal
The minimal documentation accelerates the verification process. Needless to say, this quickens the approval process as well. For instance, SBFC disburses gold loans in just 15 minutes due to the simple documentation requirement. This helps to access funds faster, allowing borrowers to account for their requirements with ease.
7. Flexible repayment options
The flexible repayment tenure also acts as a bonus for borrowers. For example, the gold loan extended by SBFC comes with a repayment of up to 3 years. This flexibility allows applicants to select a tenure that matches their repayment capability and helps settle the debt without straining the monthly budget.
Conclusion
These are among the top gold loan benefits that make it an ideal funding option. Also, don’t forget to check the additional facilities to further maximise the benefits.
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