What are the benefits of taking a loan against gold?

Taking a loan against gold jewellery or ornaments offers several advantages compared to other types of loans. Here are some of the key benefits:

• Quick Access to Funds: The loan processing is faster compared to other loans as only the gold ornament evaluation is required. If everything fits right, you can get the loan disbursed on the same day.
• Competitive Interest Rates: Loans against gold generally offer competitive interest rates typically ranging from 9% to 15%, depending on the loan provider and the loan amount. Generally, the rates are lower than personal loans or credit cards.
• Higher Loan Amount: You can avail a high loan amount depending on the gold's market value. Generally, you can get a loan up to 75% of gold's market value.
• Flexible Tenure: Most loan providers offer flexible repayment tenures from a few months to several years for the loan. You can choose a tenure that suits your repayment capability.
• Gold Ownership: You retain the ownership of gold ornaments or coins pledged. Typically, the gold articles are safely stored in bank lockers during the loan tenure.
• Minimal Documentation: Limited documentation, such as ID proof, residence proof, proof of gold ownership, and a gold valuation report is required. This enables quick processing.
• Foreclosure Flexibility: Many loan providers allow you the flexibility to foreclose the loan anytime without penal charges.