Benefits of a Gold Loan

Gold is an asset which every household has as an Investment, as part of their savings, as a security and in case of a need it is a savior, since one can pledge it to avail the funds for emergencies.

The benefits of Gold Loan:

• Banks/NBFCs normally do not check regulatory scores (such as CIBIL, CRIF, Experian etc.) while availing a Gold Loan
• It can be used as a tool to increase the regulatory scores which helps one to avail bigger loans at a future date with or without collateral
• The processing is too fast (most of the times the same day)
• Can be taken as a one time disbursement or have an Overdraft facility (pay interest for the number of days the loan is used)
• Mostly online process or with minimum documentation
• Rate of interest is competitive (almost equivalent to Home loan rates)
• Flexibility of part payment or pre closure without much hassle
• Since gold works as a primary collateral to funding agencies no additional property collateral required
• One can avail Gold loan in addition to any existing loans
• Banks/NBFCs do not ask for a reason/purpose of end use of funds

Subsidies available if it is taken from a particular bank branch location