Why Is A Gold Loan Better Than A Credit Card Loan?

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Gold Loan interest rate
Gold Loan interest rate

Loans, for the most part, are perceived by many in a negative light, however, that does not mean that all loans are bad. The truth is taking a loan at the right time can actually be helpful and make your situation better. In certain instances where you need money to pursue your passion, or get yourself out of an emergency situation it can be the best decision that you ever make to take a loan.

Credit cards are designed as a quick and convenient way to acquire monetary assistance. However, there is a catch with it. In order to be eligible for such financial assistance, you have to make sure that the card doesn’t carry any annual or monthly charges while offering the maximum time period within which one can pay back the owed amount.

If you have a credit card and you need funds urgently, the solution is right before your eyes. It’s called cash advance. A cash advance is a way to withdraw money from your credit card by borrowing against your existing balance. There are no added fees or interest charges that come with this type of loan; however, it could be subject to an additional penalty APR if you miss payments.

A gold loan can be the best way to arrange the funds required as this will ensure that there is an increase in the net worth of your asset.

THE INDIAN SCENARIO

Buying gold ornaments is one of the most secure ways to invest money. Gold prices have always gone up and there have been times when the price has shot up by 20% in just a year. This investment option comes with the safety of having a wide variety at one’s disposal, someone can select from a lot of options and make their own choice, this helps them choose the most attractive product for them. So, buying gold jewellery should be a sensible investment decision.

WHY YOU SHOULD GO FOR A GOLD LOAN INSTEAD OF A CREDIT CARD LOAN?

Gold loans make it possible for you to enjoy the benefits of owning gold while making them work for you by earning some interest on your assets. A wide range of terms and rates are available at different banks, which mitigate the risk of making an impulsive decision. Use our website to find the best options for you and take advantage of this great opportunity to make your gold assets work for you.

A gold loan is a simple and hassle-free way of borrowing money suited for people who don’t have enough credit score to get regular loans. A gold loan gives you a quick loan in just one day, at an affordable Gold Loan interest rate, with flexible repayment plans and with no collateral. It doesn’t matter how poor your credit score is and whether you have a house/car or not, you can still avail this type of loan quickly and easily.

Better Interest Rates

Loans are typically unsecured loans since your credit rating is the only thing that can guarantee that you pay back the loan. Gold loans are backed by gold, hence the name ‘gold loans’ and this makes them much safer for lenders as well.

Lower Processing Fee

Gold loans are much more affordable as compared to loans against credit cards and also provide more flexibility in terms of repayment period. They are a great alternative for traditional options and secure your safety from financial instability.

No Credit History Required

Gold loan is a secured loan that you can avail even with a not-so-good credit history. If you want to apply for a gold loan, you need to have a valid identity proof along with an address proof and voter ID card. Additionally, many banks and NBFCs also require an Aadhar number for the application process. You can take the help of an online portal or bank’s customer care representative to apply for a gold loan online.

Loan Amount

A gold loan is vastly different from a credit card loan. In a Gold Loan, you can avail a loan amount up to 75% of the actual worth of gold you are going to pledge. Thus, you can get a much bigger loan amount unlike the case of applying for a credit card loan where your credit limit is the deciding factor.

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