Tips to get your gold loan approved

In our country, few years back it was considered a good habit to pay for things in cash. People preferred to stay within their means. They bought things only if they could afford to pay for it right away. Taking a loan was an option that was considered only for financial emergencies. But the young generation of today feels strange to wait till they save enough to achieve their goals. They want to own all the luxury items they can think of; and they want to do it now.


Whether you need cash for an unplanned emergency or you need it to fulfil all your dreams, loans help you meet these goals.  If you have a good credit score, getting approved for a loan is relatively easy. Lenders put their trust on people who have a good history of managing debts in the past. But what if you never took any loans in the past and have no proof of your credit worthiness? What if your credit records show that you are a risky applicant? Getting loan in such case may seem a difficult thing.


This is where gold loans come to your rescue. If you have gold jewellery, you can use it like collateral to secure a gold loan. Banks do not check your credit score before offering such loans. Yes you heard it right! Your previous debt repayment patterns do not play any role in getting funded through this instrument.


What’s more! You can get access to gold loan even if you do not have any proof of income.

The paperwork hassles are the minimal in such loans. Since it does not require excessive documentation or verification your application gets processed really fast. All you need to submit is your ID and address proof. Just give your gold jewellery to the bank, get it verified and based on its valuation walk away with cash in your hand in less than 24 hours. It not only saves time but a lot of money too. The interest rates charged on gold loan is relatively lesser than personal loans.


Personal loans require a lot of documentation formalities and a minimum of 3 days of processing time. They are unsecured so they carry a higher rate of interest. Credit cards are an instant way to borrow money, but they too charge exorbitant rates discouraging people from using that option. Moreover, securing a personal loan or a credit card requires you to have a good credit score which is not the case in gold loan.


You can approach any private or public sector banks, cooperative banks or private lenders to get a gold loan. Some banks require you to pay interest periodically and return the whole principal amount in one go at the time of maturity. Other banks require you to pay a percentage of principal along with the interest every month.


So if you have a short term cash requirement gold loan is the fastest and easiest means. It is also a lucrative option for those who are struggling with their credit history. If you missed payments in the past or defaulted on loans you may not be eligible for most types of loan. Even people without any past credit history have to face rejection by banks when they are in dire need of cash. In such situations Gold loan is a best bet. You can not only get access to cash without worrying about your credit score you can even use it to improve your score. Servicing your obligations promptly and repaying the loan on time will affect your credit records favourably and help in raising your credit score.


When you are hard pressed for cash gold loan is a better bargain; be it in terms of ease of applying, interest rate or convenience.