Gold is a precious thing and the price of gold is increasing day by day in India. Also, if you have that much gold then you can avail the gold loan for any kind of emergency. In a similar manner, the demand for gold loan is growing exponentially in India but why, here are the reasons behind this.
No Collateral Required
In gold loan, you don’t need to submit any collateral because it is a secured asset. In another type of loans, you need to submit multiple documents, income certificates, Income Tax Returns, and bank statements but in this type, you don’t need anything. Rather than that, you only need basic identity documents to avail this loan.
Multipurpose
This is a multipurpose loan that you can avail for every kind of requirement. You can use that money for your any kind of personal need without showing that to the lender. Reasons may vary but the amount you can get easily. But you should not take extra amount unnecessarily because it may create a mess while repaying the loan.
Loan Value
This would be the first and biggest question that may come to your mind while opting to the gold loan that what amount you may get as a loan amount. In gold loan, you may get around 75% of the gold value as your loan amount. But it is advisable that you should not take extra money as your loan amount because it may create tension while repaying the loan.
Convenience of Repayment
Gold is most convenient to repay as there are plenty of lenders are available in the market that provides multiple repayment options. You can compare and can choose the lender that facilitates with a repayment option that will convenient to you.
Convenient of Loan Amount
In this type of loan, you can take the loan amount as much as lower like INR 3000 and as much as higher according to the value of your gold. This loan facilitates you to be worry-free and you can use your gold in any kind of personal emergency.