Why choose Gold Loan over any other loan?

 Loans are something that gives the impression of being difficult and complicated. Nine out of ten people tend to spend sleepless nights worrying about loans. Most of this worry is caused due to ignorance about loans. Loans are pretty simple if you know what they are. 

There are usually two types of loans: Secured and Unsecured Loans. Unsecured loans consist of Personal Loans which do not require you to keep any assets with the bank in exchange for the money. All you need to do is give some information which varies from bank to bank and after a quick verification, you will get the required loan. However, there are eligibility criteria that you are required to fulfill. If you fail to do so, your loan application gets rejected. Defaulting on a personal loan can create a dent in your credit score, which will, in turn, affect your plans to take a loan, in the future.

Unsecured loans, on the other hand, are loans that need you to submit an asset as collateral to the bank in exchange for cash. A case of default will give the bank the legal right to auction off the item. Gold Loans are a part of secured loans. They require an individual to give the bank gold in exchange for which they will get their money. Until and unless the loan is paid off, the gold will remain with the bank and default will cause the bank to transfer ownership of the gold to them.

Personal loans tend to provide more interest to the people. A Gold Loan Interest Rate depends upon the demand and the rate of gold in the market. The gold being provided to the bank should be above 18 carats and should be in a bar or coin shape. It should also positively have a hallmark. Gold loans do not require as many documents as a secured loan as collateral is involved. When it comes to gold loans, proper research is of utmost importance. Every bank has different rules for a Gold Loan. It is advisable to check every bank before applying for a gold loan. One bank that provides a good deal on a gold loan is SBI. 

The SBI Gold Loan is a user-friendly gold loan that is suitable for you. An SBI Gold Loan can be availed of by anyone who is in the middle of a financial crisis. You can submit your gold ornaments or coins as security in exchange for money. Anyone above the age of 18, can apply for this loan. The loan amount can be between 20,000 rupees to 50 lakh with an interest rate of 7.3% per annum onwards. They provide a tenure of 36 months. Once you provide them the gold, they will verify the quality and quantity. However, the repayment tenure varies. A simple gold loan allows 36 months. A liquid gold loan also allows 36 months. However, a bullet repayment gold loan allows only 12 months. 

Opting for a gold loan instead of any other is more advisable. This is because a gold loan processes your application faster than any other. It usually takes around 24-48 hours to do so. The loan amount too tends to be higher, as the bank has collateral. Gold loans also provide fewer age criteria. Therefore, if you are looking for a loan, a gold loan is what you go for. 

Also read this: Some significant gold credit offices in the country