Gold is a precious asset and acts as a hedge against inflation.
Gold can be considered as a means to get out of a crisis. Many years ago, the Indian Government also used gold to get out of financial distress.
In 1991, the Indian Government faced an acute balance of payments crisis.
So, they took a loan of $2.8 billion from the IMF (International Monetary Fund) and the Union Bank of Switzerland, giving 67 tonnes of gold as collateral.
Today, when the people of India are facing the Covid-19 emergency, they are also doing the same. They are also taking loans against their gold to fulfil their sudden cash requirements.
The interest rates on gold loans are usually lower than other loans, and the approval process is quick and easy.
A gold loan can help you fulfil short-term financial needs without having to sell your assets or investments.
It is considered to be one of the easiest ways by which one can raise cash in difficult times.
How can a gold loan help to fulfill your financial needs?
A gold loan can help in fulfilling your financial needs such as:
- Meeting Financial Emergencies
The pandemic in the country has shown how medical emergencies arrive untold.
If a sudden emergency arrives and requires instant money for hospitalization or treatment, you can take a gold loan and fulfill your financial needs.
The interest rates on such loans are also less than other loans (such as personal loans); thus, gold loan EMI will also be less.
With Muthoot FinCorp, taking a gold loan is so quick that it takes only 30 minutes for your loan to be processed.
If you want to know more about Muthoot FinCorp’s gold loan, click here.
- Funding education
Every parent wants the best education for their child. However, sending a child to college can be expensive, and many families don’t have the resources to cover the cost. That’s where the gold loan comes in.
Individuals can use a gold loan to pay for any type of cost involved in education, including tuition, hostel, textbooks, and more.
A gold loan is a good option as it offers a way to get the funds you need quickly and easily.
Gold loans typically have low-interest rates (i.e., less gold loan EMI), which can help save money in the long run.
- To fund business
When it comes to starting and financing a business, there are many options available. Taking a gold loan can be one of the options.
A gold loan is a loan that is secured by gold jewellery, so they have competitive interest rates, making them a more affordable option than some other types of loans (because of lower gold loan EMI).
- Buy an automobile
One of the common reasons why people take out a gold loan is to use the money to buy a car. A gold loan is a great way to get the cash you need to buy a car without having to go to a bank.
In fact, you might not be required to give an income proof or credit score, the interest rates will also be lower compared to auto loans, and the process will also be easy and quick.
- Other personal purposes
There may be times when you require money for purposes like repair in the house, a vacation, or to fund any other short-term goal, but you do not have enough liquid cash.
Selling your assets or investments might not be suitable at that time. Thus, you can take a gold loan. A gold loan will provide you with instant cash, and the gold loan EMI will also be less than other types of loans.
Conclusion
In conclusion, gold loans are a way of fulfilling your short-term financial needs without having to sell your gold jewellery, any other assets or investments. The interest rates on gold loans are typically lower than those on personal loans, and the process of obtaining a loan is simple and quick.
So if you need money quickly, a gold loan may be the best option for you.
With Muthoot FinCorp, getting a gold loan is relatively easy and hassle-free as the process is approved quickly at the best interest rates, with minimal documentation.
For further assistance, reach out to us at 1800 102 1616 or visit a Muthoot FinCorp branch for support.