By Priyank Kothari
Financial emergencies may arise due to urgent medical needs, demanding quick access to funds. In such situations, the required funds surpass the current available resources. Prakash, a salaried individual from Vijayawada, encountered a similar situation when he navigated through the smart choice of taking a gold loan.
Life was all merry-go-round for Prakash until he got news of his brother being admitted to the city hospital after a road accident. The disheartening news also brought a challenge of arranging funds for an immediate, life-saving operation to be performed upon his brother. Being the sole earner with a family depending upon his limited salary, he had no surplus available for this medical emergency. After inquiring through relatives and close friends, he still fell short of a substantial amount. It was then his wisdom prevailed that he thought of pledging the idle gold jewellery and availing a gold loan. The required funds were arranged and disbursed, and the medical emergency was navigated well.
Gold as saviour in financial crisis
In addition to the sudden medical situation faced by Prakash, the unexpected financial crisis arise sometimes for even less pressing matters like seizing a business expansion opportunity or meeting higher studies educational expenses. It is always prudent to be proactively prepared for such unforeseen situations with the available resources and overcome them without enduring significant harm. The rationale of keeping aside a portion of income for gold investment was best understood by Prakash when he availed of a gold loan. The gold investment is twofold: it serves as both an investment and a safety net during potential financial downturns. This principle remains valid to this day.
Also Read : Want To Buy Gold This Diwali? Check Out The Tax Implications On Your Purchase
Why gold loan is advantageous?
The below points underscore why a gold loan stands out as the most advantageous form of credit.
Hassle-free process: Taking a gold loan is absolutely hassle-free. It has the least documentation and does not require income proof, credit score, etc. like for other loans.
Instant: The gold loan is instant. Once the valuation is done the disbursal is immediate.
No Credit Score: Since the borrower is submitting gold as collateral no other documentation is needed. In fact, a gold loan is the best option for borrowers with lower credit scores.
Lesser Charges: Gold loans do not have pre-payment charges and incur the least processing fees, hence are always cheaper than other loans.
Large Loan Amount: Unlike other loans where the documentation and processing are directly proportionate to the loan value, a gold loan is the quickest to arrange large funds required for any business investment or medical emergency. Lenders can sanction a maximum amount based on gold’s market value.
Repayment Customisation: The repayment of a gold loan can be tailored to suit the borrower’s convenience. The lenders have multiple schemes to match every borrower’s needs.
Safest: Once the borrower has repaid the loan, the gold pledged is returned.
No Purpose Restriction: The gold loan has no purpose restriction. The borrower is free to use it for business or leisure.
In today’s digital world, the gold loan has become more convenient. Now the borrowers need not visit the branch for every occasion like application, disbursement of loans, interest payment, loan closure, etc. The Arvog gold loan offers doorstep service. So no more worries about any unforeseen financial crisis. A gold loan is the most convenient and quick way to access funds in times of need; however, it is advised to borrow responsibly and understand all the terms as stated in the Key Facts Statement before signing for it.
(The author is the Director of Arvog, a new age finance company.)
[Disclaimer: The opinions, beliefs, and views expressed by the various authors and forum participants on this website are personal and do not reflect the opinions, beliefs, and views of ABP News Network Pvt Ltd.]
