In the present day, with skyrocketing costs of living and growing necessities, opting for a loan has become an essential requirement for most people, whether it is an instant personal loan, which is unsecured in nature or a gold loan and home loan, which are secured with gold or by mortgaging your home.
This article will go into detail about gold loans and discuss a tool that can make this process easier, such as a gold loan calculator and allow you to secure loans more conveniently.
What is a gold loan?
A gold loan is a secured loan where gold is offered as collateral in exchange for money. This type of loan is one of the preferred options as most households in India have some quantities of gold. Other than this, due to being a secured loan, even Indians who do not have a credit history or score can apply for a loan.
Why should someone opt for a gold loan?
- No credit score dependency
Due to being a secured loan, gold loans are often not dependent on credit score, reducing the ambit of interest rate and granting instant liquidity.
- Minimal documentation
Getting a secured loan also has another benefit of requiring minimal documentation. That is because the lender’s risk of lending money is significantly reduced.
- Gold has largely similar value
Being a commodity and an internationally recognised asset for exchange, gold is valuable worldwide.
- No end-use restrictions
Gold loans, like personal loans, have no end-use restrictions, allowing borrowers to use that money for various expenses.
- The gold comes back to you
Unlike selling gold to raise money, if you can repay a loan or have gold you can spare for a few months and get back, a gold loan is a better option. This is because the gold you put up as security returns when you repay the loan.
What are some key features of gold loan calculator?
- Real-time gold valuation
Gold loan calculators offer accurate valuation per gram of gold. This gives borrowers a precise understanding of how much loan they can get for their gold.
- Interactive user interface
Gold loan calculators are interactive, allowing users to get real-time information about the loan by changing the values there. Borrowers can change loan duration and repayment options to check the gold loan interest rate and EMI options.
- Choose the loan amount or gold amount
There are two ways by which you can use a calculator. The first is to see how much loan you are eligible for with your gold, and the second is how much gold will be required to get the loan amount you need.
How to get a gold loan?
With a gold loan app, getting a loan for your gold is as simple as just a few clicks. Earlier this year, we had to get an emergency loan to renovate our house. As I have never had to get a loan before and I didn’t have a credit card, I didn’t have a lending history or a credit score. This is why I was regarded as an unreliable borrower and had to pay a higher interest rate.
My wife and I then decided to get a gold loan as we had gotten a lot of gold during our wedding and saw an ad from Bajaj Finserv. We went ahead and downloaded it and used the calculator to see how much gold we would have to put up to get our house repaired. We did that, got the money in our account, and could proceed with the renovation.
Conclusion
When faced with an emergency expense and a personal loan is not preferable, opt for a gold loan and get a secured loan quickly. And with gold loan apps like Bajaj Finserv, with their incredible innovations in calculators allowing us to make informed decisions, it is an excellent option if you have gold you can give as security for the loan duration and pay back the loan to receive the gold back.
