Gold Loan: The repo rate has been increased for the sixth time by the Reserve Bank. After this increase, taking loans from banks has become expensive. The pressure on people to pay monthly EMI has increased. People are looking for alternatives to reduce their EMIs and eliminate loans. In such a situation, a gold loan can be a good option for you.
For the last few years, the gold loan has emerged as a better option in India. The gold loan can be a good option for big purchases, buying a home, a loan for personal work, for any journey during festivals or to improve your financial condition, as there is no high-interest rate under it. Let us know how it is a better option than a personal loan.
Easy process to take gold loan
Eligibility under Gold Loan has been a matter of concern for many for a long time. The process of a gold loan has been simplified. CIBIL score is also not required for this. Anyone above 18 years can take a loan. You can spend this loan on everything from studies to buying a house.
This loan is available soon
With the advent of digital technology, the gold loan comes to your account faster than before. Some companies claim instant transfer to the loan account.
High amount of gold
In 2020, the Reserve Bank of India issued a letter to increase the LTV ratio on loans from 75 per cent to 90 per cent, offering borrowers the option of paying more for their gold jewellery.
Cheap interest rate
The interest rate on the gold loan is close to 8.5 per cent per annum. At the same time, more interest is being charged by banks on many home loans to personal loans.
Easy to repay a gold loan
One of the major attractions of a Gold Loan is the flexibility with which one can repay the loan. You can choose to pay only interest for the initial period. You can pay the rest of the money in a later period. The penalty is also not imposed under this.
