f Gold Finance
The passion for gold runs deep in India. Indians buy gold for both, adornment and investment. Given the rising gold prices, the yellow metal can be resold at a favorable time for great profits. But if you are reluctant to sell it to address an urgent fund requirement, the gold loan can help your cause. Herein, you pledge your gold for a loan and reclaim it upon loan term expiry. That’s a win-win situation, as you can raise the required funds easily while retaining the gold.  
If you are still unconvinced, here’re a few benefits of a gold loan that’ll make you think otherwise.    
●  Low-interest rates:
The gold finance represents secured loaning, as the loan is sanctioned against the security of the gold. The lender has the legal right to put the pledged loan for auction in case of defaults. With the lenders’ risk being covered, they can offer low-interest rates. Conversely, unsecured loans, including personal loans attract a higher interest rate, starting from 15%.
Typically, you’ll be paying 13 to 16% interest annually for a gold loan. If you are a farmer, expect lending rates as low as 8%. However, it’s imperative to find the right lender to get the better end of the deal. Feel free to compare lending rates of different lenders to arrive on informed loaning decisions. You can pledge an extra asset to further slash the interest rates. 
Easy loaning:
The gold loan market is highly competitive with banks and NBFCs vying for customers. The lenders, especially NBFCs earn your business with simple and fast processes and end-to-end assistance. Your loan will be approved and the amount disbursed in your account within minutes. Apply online or just walk straight into the lender’s office, the choice is yours.  
The eligibility criteria are as simple as it gets. Any Indian aged between 18 and 65 years, salaried or self-employed, having 18 karats or purer gold to pledge is eligible. The paperwork is minimal. Just submit your KYC documents, and walk away with a loan. No income proof or credit history is taken into account for approvals. Raising funds cannot get any easier, isn’t it?  
Low cost of borrowing:
If you think lending rates are the only factor that determines the overall cost of borrowing, think again. The cash for gold arrangement usually involves up to 1% of the loan amount as processing fees. Banks often charge higher processing fees to compensate for the low-interest rates while NBFCs like Muthoot Fincorp restrict it to 0.25%.
The loan against gold can come minus prepayment charges, provided you borrow from an NBFC. Muthoot Fincorp doesn’t charge penalties for late payment, which otherwise inflate your overall cost of borrowing when prepaying the loan. The NBFC charges modest valuation fees and provides cashback on regular on-time payment for cost-effective loaning.
Safety of the gold:
Gold is more than an asset for you. It might be a valued heritage you inherited from your predecessors. You might be keen to pass it to the next generation. When stakes are this high, the safety of your pledged gold when in lender’s possession might concern you.
Put all your concerns to the past, as your gold is in safe hands. Lenders rely on professionals to safeguard your prized possession. It’s placed in strong vaults guarded round the clock through e-surveillance. Lenders even insure your pledged gold, wherein you’ll receive money equivalent to the gold’s market value in case of robbery. That’s one more reason to go for gold finance.     
Flexible repayments:
The cash for gold arrangement is highly flexible in repayments and tenors. Usually, the tenors range between 7 days to 5 years, depending on the lender. NBFCs might even customize tenors to suit your repayment capacity. Plus, with Muthoot Fincorp, you can even pay it daily, weekly or monthly. That’s not it, as Muthoot Fincorp also allows you to pay interest in low EMIs while the principal can be repaid in one lump sum payments at the end of the loan term.
No end-usage restrictions:
Unlike a home loan, gold finance is a no-strings-attached proposition. The lender is least bothered where you spend the loaned money until certain conditions are met. Whether you settle a medical bill or fund your business needs or your child’s higher education, it’s totally up to you. 

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