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WHAT ARE THE BENEFITS OF TAKING A LOAN AGAINST GOLD?


Gold is one of the most valuable items in our country. Indians love to invest on it and keep them as valuable possession for the whole of their lives. It is not only valuable in the current market, but it also appreciates decently over time. Therefore one can even make a significant amount of profits by trading in jewelry. It is one of those elements which can help you get instant cash whenever you need it because of its high demand. Many banks and other financial institutions offer "Gold Loan" to the people. This can be one of the quickest and easiest ways to get a hand on some much needed financial aid.

Do you have an idea about why it can be beneficial? No? Not a problem. We will be discussing the benefits of a gold loan in this article. So keep reading!

·              Quick Processing: Jewelry is a solid and physical element which can be provided to the lender instantly. You take the jewelry, and the lender gives you the cash in direct exchange. That is the reason why the overall process of getting cash in exchange for gold is much faster than any other asset. For instance your house, the lender will have to verify all the documents, conduct valuation and carry out another process before giving you the money. Therefore if you want emergency cash, then gold loan is the best option you have.

·              Much Lower Interest Rate: It carry much lower interest rates when compared to other loans. Since a it is a secured transaction, the banks usually charge a lower rate of interest in the loan. Personal loans carry an interest rate of generally around 15%-17%, whereas a jewelry loan carries an interest of 12%-13%. That is the reason why many people choose to take these loans than other loans available to them.

·          No Processing Fees: Most of the banks, and other financial institutions do not charge any processing fees for "Loan Against Gold". Since the jewelry to be deposited is submitted immediately, processing fees are not charged on the same. The gold remains as collateral to the loan that has been provided to the individual and will be submitted back once the credit and other charges are cleared.

·      No Proof Of Income Required: It involve very less paperwork, unlike personal mortgage. Another important feature of this loan is that it does not require any kind of income proof. Individuals who have jewelry in their home but do not have a stable financial income can also take a gold loan. This is not possible with other loans where the individual will have to produce income proof.

Most of the banks and financial agencies offer gold loans nowadays without any hassles. So if you need immediate cash for any emergency, choosing to take the gold loan is the best option that you can opt for.

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