The first and foremost thing that comes to our mind is the rate of interest of the loan is very low and the fees for the processing are very much lower than the other forms of loans. For example, if we'll talk about the HDFC Bank then it offers one of the best rates of interest for gold loans. Everybody knows that the customers of the HDFC banks are very much selected while opening or having a bank account. They can get benefits from the discounted rates as well. One can avail the benefit of the lower rate of interest. One of the minimum fees of processing compared to all the banks and The Financial Institutions for example like that of Bajaj Finance Gold Loan also gives such benefits. In this category, a person can extend if he is from a salaried or self-learning category then it can act as a boon for those kinds of customers.
In this period of covid-19, it has been noticed that many people were unable to pay the extra charges as well as the rate of interest. People are unable to pay due to the financial crisis which came into the world suddenly. At this time, what most banks need is to use the rules and regulations of their norms and conditions and also reduce the rate of interest.
Secondly, we can talk about the benefits of the documentation of the Gold Loan. For example, if a person is traveling to a different location. The person is with his family and has come out for visiting a particular place. While leaving for the tour, one day prior a person came to him who is the neighbor of that particular candidate asked for help, who will be availing the gold loan and asked for some help as he was unable to meet the shortfall and all the leftover funds which will be required.
During this time before coming to the tour, he approached a particular bank for an online mode of getting the loan against a gold bracelet that he used to wear. One of the best things that happened was that he was needed to submit the proof of address and proof of Identity. The processing went a little bit faster and there was the approval of the loan. After one day when the person came back and met the neighbor then he was very much happy to say that he is about to manage the funds which he has asked for. This is one of the second most important advantages of availing of a gold loan. As the documents required are very much minimum that is why there is no need of giving any kind of income proof.
The point then there is another golden opportunity for the borrowers who have availed of a gold loan. If anybody is thinking that he or she is having quite a good accumulated amount of money and can be paid as the principal along with the loan which he or she has availed in the past to some extent. A top-up of payment or Bullet payment something like that will be able to make his or her burden a little bit less. Most of the banks used to charge foreclosure charges for closing any kind of loan before the time. But now banks are reducing the charges as well as in some of the banks no foreclosure charges are being by the loan provider.
Conclusion:
We can discuss the flexibility can you and the flexible options for the repayment of the loan. There are many options to pay for the gold loan which has been availed. If anybody is wanting a long period as would be in a position of the bird if he price to pay at a very short period. Nowadays the banks always welcome such customers also they are having a period of a long time for the repayment structure. In this method of loan repairing a little bit of the interest is being paid by the customers.