Why Gold Loan Is a Best Option to Fulfill for Your Financial Needs

The Covid-19 pandemic has changed how people have been traditionally handling finances and household expenditures. The pandemic saw millions of people struggle with expenses they did not have a provision for, like hospital bills, costs of medical tests/treatment, the need for laptops and mobiles for online classes and work from home jobs, and more. Since the beginning of the pandemic, 97% of household incomes have declined. These increased expenses had to be handled along with severe financial crises like job losses, salary cuts, and shutting down of businesses. More than a staggering 10 million people lost their jobs in the second wave of the pandemic. 

Sudden financial needs that may surface

So how does one deal with such and other financial needs? Apart from the pandemic, there could be several other occasions when a sudden need of cash arises, like, the marriage of a child or their education, a sudden need for surgery, a cash crunch in a running business, or a planned vacation abroad. To fulfill these financial needs, you may take a personal loan. However, the interest rates of a personal loan are high, and it takes long processes, documentation, and time for disbursal. A convenient and time-saving alternative to overcome your financial crunch is a gold loan. Further, to calculate the EMI you need to pay on your gold loan, you can use an online gold loan calculator and understand how much loan you can take as per your paying capacity.

Why a gold loan is the best Option to Fulfill your Financial Needs

A gold loan comes with several advantages, making it the best option to meet your emergency and planned financial requirements. Let us understand in what ways a gold loan can benefit you:

• Low rate of interest: Gold loans are available at a much lower interest rate as compared to other loan options such as personal loans, which may be as high as 20%. On the other hand, with a reputed name like Muthoot FinCorp, you can avail of a gold loan at just 6.99% per annum. If the loan amount is high, the interest rate will make a significant difference in the final amount you will have to pay against the loan.
• Minimum documentation required: The documentation and paperwork involved in availing of a gold loan is very less. The only 2 proofs you need to get a gold loan approved are a photo identity proof and an address proof. This can help take away a lot of stress of gathering the documents and undergoing long form-filling and verification processes. 
• Instant loan: A star feature of gold loan is its unmatched quick disbursal. Just walk in with your gold jewelry and basic identity and address proofs, pledge your gold as collateral, and walk out with the money within as few as 30 minutes. Use the online gold loan calculator in advance to know how much loan you can avail yourself of against your gold. 
• High loan amount: You can get as high as 75% of the value of the gold you pledge against the loan. The purer is the gold you pledge, the higher will be the loan amount. 
• Minimum foreclosure charges: If you take a gold loan with a trusted name like Muthoot FinCorp, you will have to pay the minimum, and in some cases, even zero foreclosure charges of making prepayments on your loan after three months of availing the loan. This is an added advantage and saves you from hidden costs that you may have to pay for other kinds of loans as prepayment charges. 
• Low processing fee: Getting a loan usually attracts high processing fees from the lender. The processing fee may go as high as 2.5% for a personal loan. If the loan amount is huge, this processing fee can dig deep into your pocket. With a gold loan from a brand like Muthoot FinCorp, you can save significantly on this processing fee. Muthoot FinCorp offers you a gold loan at a nominal processing fee starting at Rs. 20 only (inclusive of GST). 

The Covid-19 pandemic has changed how people have been traditionally handling finances and household expenditures. The pandemic saw millions of people struggle with expenses they did not have a provision for, like hospital bills, costs of medical tests/treatment, the need for laptops and mobiles for online classes and work from home jobs, and more. Since the beginning of the pandemic, 97% of household incomes have declined. These increased expenses had to be handled along with severe financial crises like job losses, salary cuts, and shutting down of businesses. More than a staggering 10 million people lost their jobs in the second wave of the pandemic. 

Sudden financial needs that may surface

So how does one deal with such and other financial needs? Apart from the pandemic, there could be several other occasions when a sudden need of cash arises, like, the marriage of a child or their education, a sudden need for surgery, a cash crunch in a running business, or a planned vacation abroad. To fulfill these financial needs, you may take a personal loan. However, the interest rates of a personal loan are high, and it takes long processes, documentation, and time for disbursal. A convenient and time-saving alternative to overcome your financial crunch is a gold loan. Further, to calculate the EMI you need to pay on your gold loan, you can use an online gold loan calculator and understand how much loan you can take as per your paying capacity.

Why a gold loan is the best Option to Fulfill your Financial Needs

A gold loan comes with several advantages, making it the best option to meet your emergency and planned financial requirements. Let us understand in what ways a gold loan can benefit you:

• Low rate of interest: Gold loans are available at a much lower interest rate as compared to other loan options such as personal loans, which may be as high as 20%. On the other hand, with a reputed name like Muthoot FinCorp, you can avail of a gold loan at just 6.99% per annum. If the loan amount is high, the interest rate will make a significant difference in the final amount you will have to pay against the loan.
• Minimum documentation required: The documentation and paperwork involved in availing of a gold loan is very less. The only 2 proofs you need to get a gold loan approved are a photo identity proof and an address proof. This can help take away a lot of stress of gathering the documents and undergoing long form-filling and verification processes. 
• Instant loan: A star feature of gold loan is its unmatched quick disbursal. Just walk in with your gold jewelry and basic identity and address proofs, pledge your gold as collateral, and walk out with the money within as few as 30 minutes. Use the online gold loan calculator in advance to know how much loan you can avail yourself of against your gold. 
• High loan amount: You can get as high as 75% of the value of the gold you pledge against the loan. The purer is the gold you pledge, the higher will be the loan amount. 
• Minimum foreclosure charges: If you take a gold loan with a trusted name like Muthoot FinCorp, you will have to pay the minimum, and in some cases, even zero foreclosure charges of making prepayments on your loan after three months of availing the loan. This is an added advantage and saves you from hidden costs that you may have to pay for other kinds of loans as prepayment charges. 
• Low processing fee: Getting a loan usually attracts high processing fees from the lender. The processing fee may go as high as 2.5% for a personal loan. If the loan amount is huge, this processing fee can dig deep into your pocket. With a gold loan from a brand like Muthoot FinCorp, you can save significantly on this processing fee. Muthoot FinCorp offers you a gold loan at a nominal processing fee starting at Rs. 20 only (inclusive of GST). 

All these factors point out that a gold loan is the most prudent option to cater to your financial needs. Use a gold loan calculator and calculate how much loan you can get on pledging your gold as collateral and plan your finances accordingly to save yourself from a sudden financial crunch.