In this time of uncertainty, many people and businesses are facing financial challenges. They are unable to meet their basic needs as well as cater to emergencies. Hence, they are looking for ways to strengthen their finances. Fortunately, a number of financing options are available to help them tackle these hurdles. One of them is a doorstep gold loan.
This type of loan is a secured finance facility that allows you to borrow against your gold possessions. It has several advantages, including a high LTV and low-interest rates. It is also an ideal way to strengthen your credit score, as it entails minimal documentation and eligibility criteria.
The process of obtaining a gold loan is simple and fast. You only need to submit a few documents and undergo a short and easy KYC procedure. The process can be completed within 24 hours of application, which is beneficial for borrowers who need funds quickly.
No Income Proof Needed:
Unlike other loans, gold loans do not require you to submit income proof. This can be especially useful for borrowers who have no income at all but are in need of money to handle an emergency situation. Moreover, a gold loan can be repaid in small installments, thus ensuring that you don’t have to pay interest on the entire amount at once.
Lower Processing Cost:
A gold loan is backed by physical gold, which means that lenders do not have to go through the hassle of conducting extensive eligibility checks. This enables them to process loans faster, as they are less likely to lose their capital in case the loan goes bad.
No End-Use Restriction:
Another great feature of a gold loan is that it does not entail any end-use restriction, which allows you to use the money to fund any financial requirement. This makes it an excellent choice for individuals who need funds to cover various monthly expenses, such as electricity bills and credit card dues.
Tax Benefits:
A gold loan can be considered a business expense under the tax law, thereby helping you save on your tax liability. It is also possible to claim a portion of the interest expense on your tax return, which can significantly reduce your overall costs.
Low Interest Rate:
Gold loans are generally offered at a much lower interest rate than other types of unsecured loans, such as personal loans. This is due to the fact that gold is a valuable asset, and banks are more likely to lend against it than other kinds of assets.
Higher LTV:
Gold loans offer a higher loan to value ratio than other forms of finance. This translates into a substantial percentage of the market value of your gold holdings, which makes them an ideal choice for individuals who need to strengthen their finances.
In addition to this, there are some best gold loan companies that offer online gold loans through a quick process. These companies are client-centric and focus on providing the highest level of customer service.
