1. Build your Credit Score
2. Reduce your Current Borrowing / EMI Costs
Want to know which is the most popular way to get a loan, or which is the most popular loan option? A Gold loan! It is not a modern or recent thing either. People have been taking gold loans for centuries in India. Whenever money was needed, they would take loans in lieu of their gold ornaments.
Gold loans are mostly taken to meet emergency situations, such as a medical emergency, to save one’s business, to meet a sudden demand on the market, and such. Thus, these loans are not typically taken to meet anything other than sudden needs and emergency situations. There is a good reason for this. Gold ornaments are often hereditary items, and are passed down generations in the same family. Thus, gold items and gold family heirlooms have a lot of sentimental value.
However, such views are changing. People have started taking gold loans for going on a dream vacation, to open a business, to finance a wedding, and so on. Yes, the sentimental value for gold is still there, but people are using it not just for emergency reasons any more.
One of the biggest benefits of gold loans is its liquidity. Depending on your requirements, you can use this loan for anything. The other big benefit is the ease of getting this type of loan. Go for any other personal loan and you’ll see how long-drawn and hard the application process can be. Not so in case gold loans. You need to submit minimal documents, and your gold items need to be of sufficient quality and quantity to get the amount you want. However, do understand that gold prices fluctuate. Thus, it’ll be better to take gold loans when gold’s market price is high. This means you may have to wait a bit before taking loans to avoid loss.
Now, it may happen that you may find out your current gold loan lender’s service is not suiting you any longer. For such reasons, you want to transfer your gold loan to another lender or bank. This is what is called a Gold Loan Transfer. You basically transfer your gold loan from one lender to another.
Here is why people want gold loans balance transfers
Not being able to bear the burden of high interest rates
Getting lower loan amounts that are not equal to the value of their gold
Inflexible repayment options that cannot be adjusted
Not being provided enough security for their gold
Higher per gram rates: Some lenders offer more value in lieu of the gold you deposit. It pays to be with the one who gives more Loan to Value Ratio or LTV.
Better interest rates: Lots of banks offer lower rates if you transfer your loan over to them. Take this advantage and you can save a lot of money on interest.
Flexible repayment option: Some banks offer more and easier repayment options. Pick those that do.
Better security: If a lender offers better security, you may want to make the switch.