If you’re considering taking a loan, which offers considerably better terms than other types of loans, the following are the reasons you should go for a gold loan from Muthoot Finance over other types of loans.

1. Rapid Approval, Rapid Application

For individuals in need of immediate cash or financial help, gold loans may be a lifeline. The approval procedure is speedy for such loans. The whole process is finished in record time at top non-bank financial companies (NBFCs) such as Muthoot Finance. All you have to do is bring your gold to the branch closest to you and have it assessed (which takes just a few minutes!), and you are ready to go. The branch’s staff is well-equipped to assist you at every step of the trip, from determining the gold loan interest rate to discussing possible tenure choices and terms & conditions.

2. Loans are disbursed in less than an hour.

Personal loans are typically issued within 48 to 72 hours, but when it comes to gold loans, all you need to do is collect your gold and your Aadhar Card, and the money will be in your bank account within an hour or two. It is especially true while visiting gold lending establishments such as Muthoot Finance. Thus, it provides you with the dual advantage of rapid disbursement and a reduced interest rate.

3. Transaction fees

Processing costs for gold loans have been significantly lowered, and some are even complimentary. For example, most banks impose an average processing fee of 2.5 percent on personal loans. Even mortgages and car loans are subject to reasonable processing fees, but you are free from such charges in the case of a gold loan.

4. No prior credit history is required.

Additionally, you do not require a credit history. Thus, if you apply for a personal loan and have a poor credit history, your bank may deny you. But, since gold is used as collateral, the history of gold loans is irrelevant. As a consequence, it is now much more valuable.

5. There is no need to show evidence of income.

Additionally, a gold loan does not need evidence of income. Other loan kinds require the applicant to provide proof of income. Obtaining a loan without a bank statement, a paystub, or any other sort of evidence of income is almost difficult.

6. You may pay just interest.

In the situation of gold loans, you may only make monthly payments on the interest. For example – if you get a gold loan at a rate of 12% for a sum of 1 lakh, you can simply pay only Rs. 1000 per month and make a one-time payment of Rs. 1 lakh whenever you wish to release the gold.

7. There are no consequences associated with an early closing.

Gold loans are not subject to foreclosure. However, personal loans may have interest rates as high as 4%, which is excessively expensive.

8. What are your alternatives if you do not have a CIBIL score?

Gold loans do not need credit checks, such as the dreaded three-digit number. You may apply for a gold loan regardless of your CIBIL score, which must be between 300 and 800, in the case of other loans. It makes no difference whether you’re nice or evil or whether you’re in the middle of nowhere. This is not feasible with other types of borrowing, such as credit cards or house mortgages. To qualify for these loans, you must have a high CIBIL score. Isn’t it much preferable to get a gold loan now?

9. Ensure the privacy and security of your data. Just like your lockers, but better.

Delivering your gold as collateral to the lender guarantees its security, just as if you were storing it in a safe deposit box. In contrast to lockers, which need you to pay annual maintenance fees, gold loan lenders do not charge you extra for securely keeping your costly jewelry. If you select a gold lending company, your gold is totally secure. It makes it appropriate to utilize anything that is already idle in your locker and for which you are accountable for upkeep in this case.

Conclusion

While gold loans are convenient and quick, they must be repaid on time, or the gold will be seized. Given the possibility of expedited distribution, a gold loan business rather than a bank might be a better location to get one.