Are you facing a financial crunch or need funds for an urgent expense? In such situations, it is essential to explore your borrowing options wisely. Over the years, a gold loan has become a desirable credit instrument.
Here are five compelling reasons why you should consider a gold loan to meet your financial needs
1. Higher loan amounts
One of the most significant advantages of a gold loan is that it allows you to borrow a substantial amount of money, even if you have a low credit score. Your credit score doesn't play a significant role in the approval process for a gold loan. Instead, the loan amount is determined primarily by the value of the gold you pledge as collateral.
So, if you are worried about not being eligible for a loan due to a less-than-perfect credit score, a gold loan offers a lifeline. With Bajaj Finance, you can get a gold loan starting from Rs. 5,000 to Rs. 2 crore. The gold you pledge significantly reduces the lending risk, making you eligible for a significant sum of money.
2. Lower interest rates
Gold loans typically come with lower interest rates compared to unsecured loans like personal loans or credit cards. This is because a gold loan is a secured loan, and your gold serves as collateral. Lower risk for lenders translates to more favourable interest rates for borrowers like you.
The interest rates for gold loans are generally reasonable, making it an attractive financing option. With us, you can get a gold loan interest rate starting at just 9.50% per annum.
3. Multiple repayment options
When you choose a gold loan, you gain access to multiple repayment options. Unlike many other loans that come with fixed monthly instalment requirements, a gold loan provides you with more freedom.
You can decide how you want to repay the loan based on your financial situation. For instance, you may choose to pay only the interest amount monthly, bi-monthly, quarterly, half-yearly, or annually. However, the principal amount and pending interest, if any, shall be due for payment at the time of loan maturity.
This flexibility allows you to manage your finances more effectively, ensuring that you do not find yourself in a financial bind while repaying the loan.
4. Quick and simple processing
Need funds urgently? Gold loans are known for their speedy processing. The application process is straightforward, and the documentation requirements are minimal. This means that you can expect to receive the funds in as little as 15 minutes*.
If you are an Indian citizen, aged between 21 and 70 years, all you need is 18-22 karat gold jewellery and basic KYC documents. You should have any one of the following documents – Aadhaar Card, Voter ID card, passport, driving licence, NREGA job card, or a letter issued by the National Population Registration.
5. Free insurance of gold jewellery
When you opt for a gold loan, you are putting your gold jewellery to work for you. With Bajaj Finance, you don't need to worry about the safety and security of your jewellery. Your gold jewellery is kept in secure vaults under 24*7 surveillance.
This means that you can access the funds you need while ensuring that your valuable gold remains protected. It's a win-win situation that allows you to meet your financial requirements without any sleepless nights over the safety of your gold.
Hence, a gold loan can be an excellent choice when you're facing financial needs. Its higher loan amounts, low-interest rates, flexible repayment options, quick processing, and the security it offers to your assets make it a compelling financing option. So, the next time you need funds to meet an urgent financial need, consider a gold loan as a reliable and efficient solution.
