By Ravish Gupta
There are events in life where extra expenses are needed in a short period of time. In such situations, the person’s regular source of income is often insufficient and financial assistance is needed. In such cases, a gold loan becomes the preferred option as it is one of the quickest and most secure sources of finance. Gold loans from formal institutions have become very popular in a short time, thanks to their flexibility and advantages.
Let’s look at some of the purposes for which gold loans make perfect sense:
Business Expansion: In business, additional funds are often needed for expansion or to meet sudden cash flow needs. Extra cash helps overcome these sudden conditions and bring the business to fruition. Gold loans can be helpful in such situations.
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Academic requirements: Sometimes student loans may not be available for various reasons such as not having adequate collateral or not having a good enough credit profile. In such cases, filing fees for a family member who has qualified for admission to a good college can only be possible by taking credit, and gold loans come into their own here. There are many flexible repayment options for Gold Loans, and interest rates are lower than other types of loans.
Health care: It often happens that a family member falls ill or encounters an unfortunate accident and requires a large sum of money for treatment. Gold lending can be a preferred option as the interest rate is low thus protecting a borrower against heavy EMIs.
Wedding: A family wedding often involves spending a considerable amount of money. If the funds are not available internally from the family, the borrower can opt for a gold loan. Such a loan is a lifesaver where no documentation is required besides minimal KYC documents.
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Holidays: Going on a dream vacation, whether it’s a honeymoon or a relaxed vacation in an exotic destination, can cost a fortune. Since gold loans can be used for no specific purpose and can be used as needed, they solve the problem of expenses like flight expenses and hotel stay at any place in India or at the stranger.
(The author is Business Head – Gold Loan, Capri Global Capital Ltd. The opinions expressed above are his own and not necessarily those of financialexpress.com)