In times of financial crisis or disaster, what exactly do you look for? We believe it would probably be having the money in hand to address the situation which has arisen due to the financial crunch. Today, one of the easiest ways to get money is by taking a loan, which is available on simple terms & conditions. Banks and NBFCs offer a particular loan for every situation. For instance, there are education loans for meeting the financial requirements for completing higher studies; to own your dream house, there is the Home Loan; or if you need to take a loan for any personal reason, there is the option of availing a personal loan.
Now, while all these types of loans offer the necessary monetary assistance to the borrower, they also come with certain terms and conditions, which everyone may not be able to comply with.
And then there’s a secured form of loan where the only point of eligibility is owning the monetary asset against which your loan will be secured; yes, we are talking about a Gold Loan.
Deemed a commodity whose market movement is similar to a currency, Gold is an auspicious purchase that is made generally during occasions, and in many cases is passed on from generation to generation.
Know what a Gold Loan is
A Gold Loan is a type of loan which is given against the collateral of gold jewellery, and can be availed for any purpose, be it marriage, studies, financial problem or any other personal reason. Over a period of time, people in need of money have started to rely upon this type of loan, for they believe instead of keeping the gold at home or in the bank lockers, it is better to use it for meeting the monetary requirements (without the need of selling and parting away with it). Come to think of it, gold is one of the ‘strong’ assets that anyone can own, so when taking a gold loan, you are essentially making your asset ‘work for you’.
Why should you prefer a Gold Loan?
Here is the list of reasons that make applying for a Gold Loan a superior option: –