Should you take a Gold Loan or sell your gold when you need funds

Read to know why getting a gold loan is often better than selling your gold jewellery.
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Should you take a Gold Loan or sell your gold when you need funds
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2 min read
14 July 2023

When you find yourself in need of funds, it can be tempting to sell your gold jewellery. However, before you make that decision, consider an alternative option: taking a gold loan. With a gold loan, you can retain ownership of your precious assets while accessing the funds you require.

Read to know the benefits of opting for a ​​gold loan over selling your gold, allowing you to make an informed decision that aligns with your financial goals.

Retain ownership of your gold 

One of the most significant advantages of taking a gold loan is that you can keep possession of your treasured gold jewellery. Gold holds both sentimental and monetary value, making it a valuable asset worth preserving. By opting for a gold loan, you maintain ownership of your gold while unlocking its potential as collateral for a loan. This way, you can fulfil your financial obligations without having to part ways with something that holds personal significance or may appreciate in value over time.

Quick and hassle-free process

When you choose to sell your gold, you may face various challenges, such as finding a trustworthy buyer, negotiating a fair price, and dealing with lengthy paperwork. Obtaining a gold loan, however, is often a quick and hassle-free process. The loan application process typically involves minimal documentation and straightforward evaluation of the gold's value. Once approved, you can receive the loan amount quickly, enabling you to address your financial needs.


Multiple repayment options

Another major reason to consider a gold loan is the flexibility it offers regarding repayment. Unlike selling your gold, which involves a one-time transaction, a gold loan allows you to repay the borrowed amount over a specified period. With a Bajaj Finserv Gold Loan, you have multiple repayment options – you can repay the interest on a monthly, bi-monthly, quarterly, half-yearly, or annual basis. This flexibility helps you to choose the repayment schedule that suits your cash flow and financial goals. By opting for a gold loan, you can maintain control over your finances while ensuring the smooth repayment of the loan.


Lower interest rates

 Gold loans often come with lower interest rates compared to other types of loans, such as personal loans or credit card advances. The reason behind this favourable interest rate is the security provided by the gold collateral. Bajaj Finserv offers Gold Loans starting from Rs. 5,000 up to Rs. 2 crore with interest rates starting at just 9.50%. By opting for a gold loan, you can access the funds you need at a more affordable cost, ultimately reducing the financial burden. This advantage makes a gold loan an attractive option when you require immediate funds but want to avoid the higher interest rates associated with other loan products.

While selling your gold may seem like a quick solution to address your financial needs, opting for a gold loan provides numerous benefits. By choosing a gold loan, you retain ownership of your precious assets, benefit from a quick and hassle-free process, and enjoy multiple repayment options with ​​lower gold loan interest rates. These advantages allow you to access the required funds while preserving your treasured possessions and maintaining control over your financial future. 

Next time you find yourself in need of funds, consider the long-term value and sentimental significance of your gold and explore the option of a gold loan. To apply for a Gold Loan, you can simply visit the Bajaj Finserv website.

Disclaimer

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