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Why to pledge jewellery & take a Gold Loan?
Posted on Monday, January 9th, 2023 | By IndusInd Bank
A secured loan, a gold loan comes with low interest rates and flexible repayment tenures. With myriad advantages to borrowers, an IndusInd Bank gold loan is a swift and secure way to get instant access to credit, while ensuring the safety of your jewellery.
Gold jewellery in India has traditionally been looked upon as an asset, akin to land and property. Ornaments made of the precious metal are greatly valued across the country, and often serve as heirlooms passed down through generations of a family. But gold jewellery is not coveted just because it is beautiful or is considered a mark of wealth and prestige. Since gold is a valuable commodity that can be pledged as collateral for a loan, it can be really helpful in times of financial crises, as it can give people instant access to funds.
What is a Gold Loan?
A gold loan (also known as loan against gold) is a secured loan taken by a borrower from a lender by pledging their gold ornaments as collateral. The loan amount provided to the borrower could be up to 75% of the value of the pledged gold, depending on the current market value and quality of gold. The borrower gets back their gold jewellery once the loan is repaid along with the interest amount.
Like a personal loan, a gold loan can be availed to meet all your short-term credit requirements such as taking care of a medical emergency, funding a child’s education, setting up or expanding a business, or any other personal exigency.
Why should you take a Gold Loan?
While the pandemic appears to be in its last legs, its ripple effect continues, with many people still embroiled in financial difficulties. If you own gold jewellery and are wondering if it is a good idea to take a loan against it for meeting an urgent financial need, read on to discover 5 major reasons to take a gold loan:
- A gold loan is a practical way to secure urgent funds without having to dip into your savings, liquidate your long-term investments, or sell your valuables
- Since gold serves as collateral, gold loan interest rates are typically lower as compared to unsecured loans such as a personal loan
- As a secured loan, a gold loan calls for minimal documentation and is quickly sanctioned and processed
- With flexible end-usage, this type of loan can substantially help meet a variety of short-term credit requirements
- Gold loans come with a flexible and convenient repayment schedule
Fund your Dreams through IndusInd Bank Gold Loans
Worth a million sentiments, your gold jewellery is infinitely precious and IndusInd Bank understands this. With simple documentation and attractive interest rates, a gold loan from IndusInd Bank can easily help you tide over difficult times. Some of the defining features & benefits of an IndusInd Bank gold loan are as follows:
- A transparent and swift process marked by same-day credit disbursal
- Low interest rates, nominal processing fees, and valuation charges.
- A highly secure process entailing valuation and sealing of your gold ornaments in your presence to ensure peace of mind. Kept inside the bank locker, your gold is fully safeguarded.
- Loan amount could be up to INR 20 lakhs, with availability of flexible repayment tenures ranging between 3-12 months
Fulfil your financial needs with a gold loan from IndusInd Bank today!
Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.
