Gold Loan is better than other Loans

Various banks or private lenders provide a loan to individuals for fulfilling a variety of personal needs like electronics' purchase, education of kids, relationship and so on. This type of loan known as a personal loan. The gold loan also offers you with similar facilities, however, need a security as gold, that is not essential in the event of personal loan. Listed here are a few of the benefits of choosing a gold loan instead of a personal loan. 

1. Minimum Or No Processing Fees 

Simply because that a personal loan will not really need collateral, banks necessarily and carefully look at your documents provided as income proof, and hence need some processing fees to bring in by you. This fee is mainly within the range of 0 .5 percent to 1 percent of the loan amount. Comparatively, when it comes to cash against gold you can be not needed to provide any specific income proof and also hence do not incur any specific processing charges in maximum cases. 

2. Lower Interest Rates 

One more reason for selecting precious metal loans is the astounding variance between their interest rate along with the interest rate of personal loans. The market craze of gold loan rate of interest lies between 12 to 15 percent each and every year whereas the personal loan rates range from 18 percent to 24 percent. 

3. No Pre-Payment Charges 

The requirement of personal-loan, in general, is the fact that its repayment can be achieved via regular payment of EMI over a set time period. This also gives you an option to pre-pay a part of the amount in exchange for a pre-payment fee of regarding two percent of the current excellent principal amount. The situation differs when it comes to cash for gold. It offers you with the facility of repaying any amount or even closing your loan account any time you wish. 

4. No EMI, Only Pay The Interest Amount 

This specific thing is easily the most unique feature connected merely with Cash for Gold in Chandigarh. The gold deposited by you is actually worth a lot more than the amount borrowed by you, therefore the lender will offer you the no EMI option easily. This will save enough money as the EMI is a mixture of interest amount plus principal repayment. You just need to keep paying the interest quantity regularly to maintain your loan account active. 

5. The Loan Amount Will Not Depend On Your Salary 

The amount to be borrowed in the event of a personal loan depends on the salary whereas the amount of cash you may get in case of a gold loan rests on the worth of gold you deposit. Most lenders give you 70 percent of the current market worth of your gold which could vary up to 90 percent based on interest rates. Know more about gold buyers in Chandigarh...