There are often times when a person’s bank savings fall short. The situation can range from a medical emergency, a child’s admission to college, marriage or business. There are many loans available to meet these needs. However, gold loans are the best in terms of flexibility. The reason for this is the presence and importance of gold in every household. It is easy to get a loan by mortgaging gold.
The loan to value (LTV) for the gold loan is quite high, which means you can get a loan of up to 75% of the value of the gold you put down as a mortgage. Gold loans can be used to meet any expenditure. There are no compulsions or conditions attached to them. Here are some ways in which a gold loan can be utilized.
Business or startup loan Gold loan can be the perfect way to raise capital to start a new business or to meet day-to-day expenses associated with a new business. This is because of the high loan-to-value and attractive interest rates of gold loans. Gold loans can be a good option for rural women to materialize their business plans and set up their own enterprises.
Education loan There are many financial institutions that provide education loans for studies in India and abroad. However, there is a small issue with this. Banks generally give loans only for education in top-level institutions. In such a situation, a gold loan can be a good option as there is no eligibility criteria for it. Also, this money can be used for admission to any kind of college.
Medical emergency It is said that ‘trouble never comes pre-announced’. Medical emergencies are also like this. The cost of medicines and treatment can eat up all the hard-earned money of a person. In such a situation, gold kept at home can help you. Easy processing and quick disbursal makes gold loans a suitable option to meet a range of medical expenses.
Helpful in meeting other expenses Low-interest rates and the freedom to spend the loan amount as per your wish make gold loans a good option in many ways. Through them, the cost of repairing the house, other big expenses, and expenses like foreign tours can be covered
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