Reasons why a gold loan is always cheaper than a personal secured loan

Credit and debts are two very essential financial tools that maintain a Ying-Yang of balance between the two faces of the economy. Today we are going to share some important stuff about one of the most popular credit systems with our readers i.e., Gold Loans. Gold loans have been around for a while now. The Indian economy and almost every economy around the globe has its foundation deep-rooted on the basis of gold. Today in the 21st-century gold loans have made gold more frequently accessible to pledge loans on top of them for a short period of time. And thus, you can efficiently utilize your gold jewelry kept in vaults in difficult financial times and get a gold loan against it. As soon as you pay back the loan amount along with the interest, you can reclaim your gold ornaments.

When it comes to looking for secured loans for more limited time lengths, there could be no more excellent choice than looking for a gold loan. Despite the fact that there are many benefits of getting a Gold Loan, for this blog we have picked the best motivation to discuss for example rate of Interest, repayment methods, and FICO scores. One of the generally asked questions is for what good reason people should not look for a personal loan rather than a gold loan, so today we will try to clear that one small step at a time. Here is a concise correlation of a gold loan to a personal loan depending on various boundaries we mentioned above.

1. FICO score is not a barrier to being eligible for gold loans

FICO score or the credit score of an individual is very important for a person to be eligible for any kind of loan. This follows with the secured personal loan even. Many people in spite of having decent collateral cannot qualify to get a personal loan because of a poor FICO score. This can be because of failing to deposit EMIs and clearing loans in the past. But this is not the case with gold loans. With Rupeek you can get the best gold loan and all you need for it is a small KYC and your gold jewelry, which if passes all the quality checks, qualifies for the gold loan.

2. The rate of interest is way too much with the personal loans

For the most part, gold loans accompany lower interest commitment than a personal loan, which implies the expense of a gold loan is not exactly like other loan types. Additionally, you will be needed to remove less cash from your pocket to reimburse the loan. With Rupeek you can get a gold loan for interest rates as low as 0.49% per month or just5.45% per annum.

3. You can get a higher principal loan amount with a gold loan

A gold loan normally gives a higher greatest cap on the loan sum than a personal loan. Most banks and monetary establishments offer personal loans for up to Rs.40 lakhs while loaning foundations give gold loans to a limit of Rs.4 to 5 crores. On the off chance that you have a higher loan sum necessity, you can favor gold loans. Although this factor also depends on the LTV that the bank or NBFCs offer. Rupeek has a very high LTV, so that you can get more value out of your ornaments eligible for the loan amount.

4. More flexible repayment options

With Rupeek, you get highly flexible repayment options for your gold loans. India is an economy whose biggest segment of contributors lies in the middle-class salaried segment of employees. This is the reason why repayment options are a very essential point to ponder upon.