Study on the Benefits of Gold Loans in India
Indians love to buy Gold. In our country, if you have Gold, that means you are wealthy and prosperous. Today, we will look into the Gold loan segment, the history of gold loans in our country, some of the benefits of having a gold loan, and more.
After reading this blog, you will learn about the importance of gold in our economy, how differently we can use these loans, and tips that might help you choose the best gold loans in India. If possible, you can visit a personal loan DSA and get help regarding loans. These professionals are dealing with different loans and would accurately guide you on the right path.
The History of Gold Loans in India
As we have already told you, the relationship between gold and India has been since old age. It is in our custom to wear gold. Over the years, the use of gold has changed in many ways. Now, you don’t need to certainly have the gold to invest in it. Different forms of gold are available in the market. These things have made the transaction simple and effective in the market.
- You can easily find moneylenders that work locally. Once you go to them with gold, they will lend you money.
- Then, there are banks that offer similar gold loans, but the operations are much more sophisticated and fairer.
- Next, we have the modern-day non-banking finance companies who are specialized in these types of work.
There must be some other types as well. Unless you get into the market, you won’t know much about them. Always get professional help before making any major financial decision.
Learn about Some of The Popular Gold Loans in India
The time is right to talk about a few important and popular gold loans in the market. Have a look at them, gather enough information, and then decide which one is best for you-
- SBI Gold Loans
State Bank of India has really interesting Gold loan options. Here, the interest rate is attractive, and people from any financial status can have a loan in return for some gold.
- Muthoot Finance Loans
You must have seen those advertisements by Muthoot Finance. They are currently one of the largest Gold Loan distributors in the country. When you are looking for institutions that can give you the best loan-to-value ratio, Muthoot will be on top of it.
- Manappuram Gold Loans
Manappuram gold loans are another option that you can choose. This particular loan is hassle-free and comes with multiple easy repayment options.
- Gold Loans Offered by Other Banks
Apart from these loans, there are other gold loans offered by banks and financial institutions. Almost all the prominent banks have their classic gold loans for their customers.
What Are the Advantages of Having a Gold Loan in India?
We are done with the basics; now the time is right to understand a few important benefits of having the perfect gold loan-
- Easy Funding
Loans in return for Gold are the easiest to have. The loan disbursal process is easy. When you need money urgently, you should go for gold loans.
- Credit Score Is Not Necessary
Unlike other loans, here, you don’t need much credit score. Even if you have a low credit score, you can easily have the loan against your loan.
- Flexibility
Flexibility is another aspect that is important regarding gold loans. The loan company will not ask you about the use of the money. You can use that for your personal, business, or educational purposes. Understand the collateral rules of gold loans before having the loan.
- Interest Rates Are Lower Than Conventional Loans
Low interest rates are also responsible for the massive success of gold loans. Compare the interest rate with other unsecured loans to understand the difference. Check a DSA app for help.
- Loan-to-Value Ratio Is Quite High
Are you familiar with the loan-to-value ratio? Once you submit the gold, it will get you roughly 80% of the market value. It all depends on the loan company you have chosen. It is better to learn about options from different companies before deciding the best one for you.
- Better Repayment Opportunities
Finally, gold loans can get you some of the best repayment opportunities. EMI plans and loan tenure can be negotiable.
Don’t forget to consult with an expert before deciding.