Why you should choose a gold loan for emergency
Gold has always carried a high aspirational value in India. While gold has always been an investment option, it is also effective for taking a loan in times of emergency. Keep reading this post to know why.
Possessing gold has been looked upon as a mark of prosperity in Indian households since time immemorial. People in the country have emotional attachments to the gold jewellery they possess. Many people consider gold as collateral for taking a loan when faced with an emergency or sudden shortage of funds.
Mentioned below are the reasons why you should consider taking a gold loan to support your finances in the face of any emergency or urgent requirement of funds.
1. Instant disbursal of funds
One of the biggest advantages of the gold loan is you get instant funds whenever there is an emergency. The ICICI Bank Gold Loan disbursal is quick, and it is the best alternative to meet your financial needs, be it education, medical crisis, business expansion, or any other specific end-use.
2. Lower Interest Rates
The first and the foremost advantage of gold loans are that these are secured loans. The lender holds your gold as collateral.
3. Higher Loan Amount
You can borrow a significant amount of loan against your gold securities. ICICI Bank offers a loan ranging from a minimum of Rs.10,000 and a maximum of up to Rs 1 crore against your gold jewellery. You can use the Jewel Loan Eligibility Calculator that will give you the estimated eligible loan amount once you enter details such as loan tenure (in months), number of gold ornaments, the weight of the gold and carat details.
4. Flexible Repayment Options
Among all the secured loans, gold loans enjoy the most flexible repayment options. The borrower is generally allowed to choose from any one of the following loan repayment options.
No EMIs. Just pay at a shot at the end of the loan tenure.
Pay a part of the principal amount and interest every month.
Overdraft facility. Withdraw as and when the requirement arises. Interest will be charged only on the withdrawn amount. Pay principal at the end of the tenure and service the interest monthly
Flexi payment. Flexible repayment options without foreclosure charges.
Every repayment option comes with its own financial implication. You are free to choose after assessing all the options.
5. Lenient Eligibility Criteria
Since gold loans are relatively risk-free for the lenders, the eligibility criteria are very lenient.
Anyone with gold ornaments can apply for a loan.
The credit score of the borrower is not a major deciding factor.
The income and employment status of the borrower is not accounted for.
6. Faster, Safe, and Easy Processing of Loans
Gold loans do not have a complicated documentation process. You can just walk into the lender's office, submit KYC, get your gold evaluated, and you can walk out with an approved loan.
If you want quicker processing of the gold loan, apply online through the lender's site and follow the instructions accordingly.
It is high time to realize and unleash the value of your gold ornaments. Family gold reserved do not have any practical use when kept inside a locker. However, the same gold can rescue you in times of crisis. Once you are past your emergency, you can always go back and redeem your gold after paying back the loan amount.
ICICI Bank offers instant Gold Loan at attractive interest rates. To apply, you may give a missed call on 84448 84448 or visit the nearest ICICI Bank branch.
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