Make the best use of your Gold Jewels
Gold is one of the most common assets that a majority of Indians invest in. The yellow metal holds a special place in the Indian households, due to the cultural and traditional connotations attached to it. Also, owning gold indicated owning a large amount of wealth and being rich.
People not only buy gold, but it is even passed on from generations to generations. However, in the modern era, not a large number of people do not preferably tend to wear it and it is only used for the storage purpose.
But, there are a number of options that can help you make the best use of your gold jewels. Out of all, borrowing a gold loan with your gold can help you make the best use of your gold jewels.
Use gold to borrow a gold loan:
Gold can be best used in times of financial crisis. The best way to use your gold is to borrow a gold loan. A gold loan is one of the easiest to avail loans. It can be borrowed by everyone irrespective of their occupation and income.
Borrowers are only required to keep their gold at stake, through which they can borrow funds. Thus, gold loans are secured loans in nature and can be availed for a maximum tenure of three years.
The gold loan further, allows a loan repayment flexibility, as the borrowers can avail the loan as per their own convenience.
Another best thing about gold loans is that it requires the least documentation. This is because the borrower’s income and occupation are not considered by the lenders, and thus no extensive documentation is required.
Also, it is a known factor that gold prices keep on rising day by day. However, this factor is highly beneficial for those who wish to avail a gold loan. The more the price of gold is, the more loan amount can be availed by the borrower.
Gold loans usually offer a higher loan to value ratio, that covers up to 70%-95% of the gold value.
Another important thing about gold loans is that it is offered by a number of lenders in the loans market. However, all these lenders provide gold loans at comparative interest rates.
Thus, before making the best use of the gold loan, one must choose the best gold loan interest rate, which in all cases is the lowest gold loan interest rate. The best part about these gold loan interest rates is that it is comparatively cheaper than all personal loan interest rates.
Gold loan interest rates are cheaper in comparison to personal loans because the gold loans are backed by collateral, which is the gold itself. Collateral-involved loans reduce the risk factor associated with the loan repayment, that’s why the interest rate is low.
Also, gold loans are easier to avail than personal loans, as the eligibility factors can be easily met and abided by. Unlike a personal loan that requires one’s to meet commitments like credit score, a gold loan can even be availed by homemakers.
On a concluding note, gold is the asset that can help one arrange funds quickly and easily in the times of financial crisis. All can easily avail gold jewels. Thus, one must always try investing in gold when possible.
However, before investing in gold, it is important to ensure that the gold loan is borrowed only in times of need and to fulfil important financial moves.