When a person requires instant funds, the first thing that comes to their mind is a gold loan. Gold loans are provided by the banks by pledging precious gold jewelry, articles, etc. as collateral security. Various banks and other NBFC’s disburse gold loans quickly at much-reduced rates, with moderate or no processing fees.
- Faster processing- If you reside in Jaipur and thinking of availing of the gold loan, they should go ahead because gold loans are the secured loans that involve minimal documentation with no processing fees. The lenders disburse the loan in a few hours. Also, the people who fulfill the eligibility criteria can obtain the gold loan in a few minutes. Thus, you can easily avail of the best gold loan in Jaipur with faster processing.
- Affordable interest rates- In comparison with other unsecured loans like personal loans, the gold loans are way better in terms of interest rates. The gold loan has a low rate of interest. Plus, if you attach another asset as collateral then the rate of interest could be more lowered.
- No processing fees- Various banks and other non-banking financial institutions levy zero processing fees on gold loans.
- Minimal documentation required- To avail of the gold loan, minimal documentation is required. Generally, some of them are- Land proof, Income proof, borrower’s signature on passport, etc.
- No Foreclosure charges- Most banks and NBFC’s do not charge any foreclosure fees while some do at 2-4%. It is always advisable to have a brief idea and connect with your loan provider to know more about such charges.
- No credit history needed- The other advantage of a gold loan is that you do not need a credit history. Credit history generally tells the history of loans taken by the borrowers. In the case of unsecured loans like personal loans if the credit history of a borrower is not good, then he\she is not eligible for taking a gold loan but this is not applicable in this case.
- Tenure period- Generally, the tenure period depends from lender to lender. The gold loan comes with flexible tenure repayment from months to 2 years.
- No other document than gold as collateral- The other advantage of a gold loan is that for taking a gold loan, only gold is considered collateral security, and no other documents are required.
- Safety- For taking a gold loan, you need to pledge gold as collateral security with the banks. The banks have complete transparency with the customers and thus, the gold is safe with them. Once you return the loan amount the pledged gold is returned to you in the same condition as it was before.
Gold loans are a safe and secure method that fulfills the urgency of the people. Various banks and other NBFC’s provide gold loans at much-reduced rates, with zero processing fees, with minimal documentation, and much more. Therefore, to avail of the gold loan, every bank has its terms and conditions. The gold loan rate in Jaipur is also low in comparison with unsecured loans like personal loans.