Home Business Why do people go for a gold loan with a minimum credit score?
Why do people go for a gold loan with a minimum credit score?

Why do people go for a gold loan with a minimum credit score?

by Samson

Support for a gold loan gets offered by a financial institution. You can get help from Fintech or NBFCs. In comparison to other loans with fixed terms, gold loans present flexibility to the customer to opt for any funds they offer. 

Compared to loans with a condition for using funds or fixed-term loans, gold loans come with more flexibility. People who go for gold loans use the funds in their terms. Whether it’s weddings, education loans, or medical emergencies, Rupeek.com lets you use the loan amount at your will that also comes with the facility of online gold loan

Besides, there is no credit score needed for gold loans. The main criteria of gold loan clearance are your precious gold. As a secured loan, the purity of yellow metal and collaterals play a pivotal role. It ensures that you get quick approval for gold loans. 

What are the benefits of pledging gold loans?

Rupeek says that the perks of availing of gold loans are many. Here is a rundown of reasons to go for gold loans. 

  • It needs quick processing for the gold loan. 
  • It needs minimal documentation for the gold loan. 
  • The interest rate is low when compared with other loan types. 
  • There is no or little processing fee. 
  • There are no clever foreclosure rules. One has the permit to close a gold loan at any time. 
  • The gold loan has easy repayment options and doesn’t thrust additional interest charges. 
  • An additional benefit of opting for a gold loan is that the estimated amount relies on the market price of gold.
  • Financial institutions like Rupeek offer triple-layered security to the applicant’s gold ornaments. Rest assured that the gold loan that you use as collateral is in safe hands. 
  • A financial institution has a separate vault to store all the pledged gold ornaments of the applicants.

Get to know about the gold loan eligibility criteria. 

When it comes to applicants, farmers, self-employed, traders or other professionals can apply for the gold loan. The minimum age to apply for a gold loan at Rupeek is 21 years. 

It should have a valid KYC document, identity proof, and address proof. It is the better option for people who want to apply for a gold loan due to a low CIBIL score. 

What are the factors that play a vital role in getting a gold loan approval?

  • The gross weight of a gold loan gets measured using a gold scale. Net weight gets calculated by reducing the gold loan by eliminating the stone available in gold. 
  • Rupeek.com gets your gold loan insured so that you get compensation in times of emergency. 
  • Only the KYC or Know Your Customer is essential for gold loan approval. 
  • The interest rate of the gold loan varies from 12% to 16%. There could be a valuation charge that gets waived out by lenders that have in-house valuators. 
  • The repayment tenure varies from 12 to 24 months. It depends on the financial institution issuing the gold loan. 

It is better to think of an online gold loanthe Rupeek team will take care of all the formalities needed.

Gold Loan and Chennai

Chennai is a spot of dishes like Dosa, beautiful beaches, temples, everything in one place. A place called ‘Namma Chennai’ (Our Chennai), a place where history was made. Specialized in manufacturing of shipping industries and automobiles. Currently, Chennai is boosting its manufacturing with the extra visionary people looking to establish businesses and those big businesses need a big amount of funds. That’s the main reason people positively opt for gold loan in Chennai

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