People take Gold Loans in India for a variety of reasons. This could be for a personal reason, such as schooling or the purchase of a property, or it could be for the purpose of funding a business. Borrowers can choose from a variety of loan options to satisfy the various requirements of each of these demands.

Gold loan market in India is becoming increasingly popular for a variety of reasons, including the fact that they can be used for a variety of purposes without requiring a specific explanation. Most individuals are aware of the benefits of gold loans, which include their affordability, convenience, and speed. However, many people are unaware that gold loans in India offer much more, making them the ideal solution for their financial demands.

What are the advantages of gold loans?

The following are some of the most significant advantages of gold loans:

Quick Processing - Because gold loans are secured by genuine gold, banks and other lending organisations may simply give them. Lending against gold is a safer choice for banks since they can quickly sell the gold if the borrower defaults. As a result, banks typically disburse such loans within a few hours. As a result, processing times are reduced, resulting in more convenience for borrowers.

'Pay Interest Only' Option - A common element of gold loans is the ability to pay only the interest component while repaying the loan. The primary component might be paid at the end of the loan term or during the loan closing process.

Interest Rates are Lower - Because gold loans are secured loans, banks charge a lower interest rate than unsecured loans like personal loans. Gold loans include interest rates ranging from 13 to 14 percent. Personal loan interest rates, on the other hand, are often around 15%. The bank lowers the interest rates on gold loans for applicants who can supply additional collateral.

Zero Processing Fees - Because gold loans are granted promptly with gold as collateral stored by the bank, many banks and NBFCs do not charge any processing fees.

No-income Proof - Borrowers are not required to provide income evidence in most gold loan applications because the loan is secured by the gold promised by the borrower.

Poor credit history has no bearing - In most loans, the bank determines the loan amount based on the borrower's repayment abilities and credit history. This is not the case with gold loans, though. Because gold is used as collateral, lenders are confident in the repayment of the principal component and do not base their decision on the borrower's credit history.

Security of Physical Gold - It is the lender's responsibility to keep the physical gold safe. Borrowers do not have to worry about it because it is generally kept safe in the bank's vault. The bank returns the gold once they have paid back the loan.

Convenience - India consumes the most gold in the world, with the majority of it being stored in Indian households. As a result, gold is a very accessible item that can be found in most homes. Furthermore, most gold is kept at home or in bank vaults. With all of this in mind, a gold loan becomes a more practical option than other secured loans such as mortgages.

Ruptok offers gold loan benefits.

Ruptok provides all of these gold loan advantages in India, as well as many others. Ruptok offers the highest LTV, lowest interest rates, and immediate loan disbursement. Ruptok also strives to make your gold loan experience the best possible, which is why we operate entirely online to make the procedure as simple as possible.

All gold loans made with us come with the extra convenience of doorstep services. To apply for a gold loan, simply set up an appointment with us, and we'll come to your house to conduct the assessment, KYC verification, and loan disbursement all at once! Check out our website to learn more.