Gold is always considered an asset. There are huge investments made over gold as a commodity as it works out as a good hedging. Ladies in India are fans of gold as they emotionally and sentimentally adore the shining metal. So, in our country gold is more than just a shining metal. So, as asset, gold is eligible for money in exchange. This valuable metal is therefore used as a security in getting a loan approved.
In Exchange For Money
Every person has to face a sticky position one or the other day. In a hope that it does not transform into a sticky end there are several economical alternatives. Bank loans are available on various properties, whether they are movable or immovable. Gold is one such security that can let you exchange money for it.
Sensibly, gold is a perfect gateway for cash at the time of emergency. For instant cash people turn at the banks or agencies that can approve a loan without making their clients wait. Gold loans are so instantaneous that you do not have to wait too much. Since it is a valuable asset, it will undergo a quality check first then the loan will be approved without undue delay unless the gold proves to be faulty.
Why Gold Loans Are Better?
Instant cash: Gold is a material that is handy. Also the authorities can check for the authenticity and report it to the official instantly. Ease of availability: There are a large number of institutions and lenders who are licensed to offer loans against gold. So, gold loans are easily available. No membership: There is no membership required to claim a gold loan. All you need is gold. Many banks and co-operative societies are ready to exchange gold for cash without excessive red tapism and documentation. You may be asked to provide the identification, proof if you are a member or have a live account in the respective bank or society. High money value: Considering the volatility of gold rate, the loan amount can be as high as 20, 00,000. And this big amount can help you to sail huge distances. Good for businessmen: Gold loans are good for business. For the businessmen, when they claim the expense of interest against the gold loan they are eligible for tax exemption. However, gold loans hardly provides any benefits for the people who are paid salaries.
Gold loans are easy and fast to avail. Though you will find some facts you prefer to remember. You will have to pay a processing fee that is 0.56%. Loan amount, loan period, loan interest are a few things you should discuss with the loan providers. It is always better to redeem the gold and mortgage again, otherwise your gold may be taken out of storage. In case you are not able to pay back the loan amount within stipulated time, your gold may be auctioned after three years. This time period may vary from one bank to another.