GOLD LOAN IN INDIA: -
Most of the households in India have the articles of gold lying idle in their lockers. And the good news is that we can put that gold into good use when we are in need of money. If a person is in urgent need of money, he can use the articles of gold to fund his financial requirements immediately. You do not have to sell your gold now to get some money in a financial emergency, because you can easily apply for a gold loan and can use the money to cater to your financial requirements. There are a lot of banks and Non-Banking Finance Companies across the country that offer gold loans to customers at an affordable and attractive rate of interest. Before applying for a gold loan, a borrower should be aware of all the aspects of a gold loan like its procedure, merits, demerits, etc.
WHY A GOLD LOAN IS A SHORT-TERM LOAN?
A gold loan is a short-term loan and it has its own benefits. A short-term loan provides you quick cash when your cash flow is not adequate. These have a shorter period of repayment than the normal loans and the interest rates here are also lower. A small business owner can also go for a short-term loan.
Gold loans are short-term loans and they have a flexible tenure of repayment which ranges from a minimum tenure of one month to a maximum tenure of 5 years or more, it depends on the moneylender that what maximum limit he can give. As a gold loan is a secured loan, you have to be careful about the repayment of the loan and you should also take the amount of money that you actually need and the amount that you can repay comfortably to the bank or to the moneylender. You need to pay the amount back to the bank or the moneylender or the gold articles that you have pledged will be taken by the moneylender and he will then, have all the legal rights to freeze your articles and sell them or auction them to recover the amount of loan.
FEATURES OF A GOLD LOAN: -
Following are the features of a gold loan: -
- Short term loan- A BANK OF INDIA GOLD LOAN is a short-term loan and it is really beneficial as you can get the cash really quick and the short-term loans also have a flexible tenure of repayment.
- Attractive interest rates- The interest rates on a gold loan is affordable and reasonable as compared to the other loans. Here, the rate of interest is low because the moneylender is provided with the gold and he has a satisfaction that if the borrower will not be able to repay the loan due to any circumstances, he can freeze and sell your gold and can get the money back.
- Secured loan- A gold loan is a secured loan, which is beneficial for both the moneylender and the borrower. The gold particles will be kept by the moneylender and after the successful completion of the loan, the gold articles will be given back to the borrower.
Also read this: What are the terms and conditions of avail the gold loan?