During a financial emergency, a loans against jewellery is a fast and affordable way to get the cash you need. You don’t have to go through a lengthy application process or prove a healthy credit score to get this type of financing.
There are many ways to borrow against your jewelry, including pawn shops and dedicated jewelry lenders. Unlike pawn shops, these lenders specialize in handling jewelry and may be able to lend you at a higher percentage of your item’s value. They also sometimes charge lower interest rates and storage fees.
Collateral-free financing
When you apply for a loan through traditional financial institutions, you typically have to submit a lot of information before they will approve your application. This process can take time and cause stress for you.
However, Loan on Gold Jewelry can help you quickly get the funds you need without having to go through a lengthy vetting process or prove your credit history is healthy. These loans are perfect for anyone who needs cash urgently and doesn’t have the time to wait for a conventional loan.
You can also find collateral loans at community-based financial institutions such as credit unions. These organizations are nonprofit financial co-ops and have a mission of providing financial services to the members they serve. They may offer lower rates and better terms for collateral loans.
Easy access to finance
Gold-backed loans come with relaxed eligibility parameters, which translates to a faster processing time and lower interest rates. It also means that these financial products are a good choice for those seeking to buy their dream home, plan a family vacation, or make a major purchase like an engagement ring.
The most exciting part is the fact that you can borrow a significant amount of money with minimal paperwork. Unlike traditional lenders that require you to submit several forms and documents, a loan against jewellery is simple to apply for online or by mobile app. The lender will then verify the value of your jewellery and offer you the funds within 24 hours. Depending on the lender you choose, your financing could be for as little as $100. The best way to ensure that you get the right deal is to do your research and shop around. You can even ask your local jeweler if they can recommend a reputable lender.
Repayment options
Unlike a loan against real estate, loans against jewellery offer multiple repayment options to ensure that borrowers are able to pay their debts within the stipulated timeframe. These include regular EMIs, interest-only repayment, and bullet payments.
Choosing a gold loan repayment option is also dependent on your finances and personal preferences. If you have a steady source of income, repaying your loan by EMIs is preferable.
However, if your finances are unpredictable, you may choose to repay your loan in full at the end of its tenure. This is called a bullet repayment and is useful if you have the resources to make such a large payment at once.
Besides offering flexible repayment options, most gold-backed loans allow borrowers to recover their jewelry if they default on their EMI payments. This helps lenders keep their costs low and convenience levels high. Moreover, it reduces the risk of borrowers selling their gold jewellery outright.
Transparent financing
Whether you want to remodel your kitchen, pay for medical emergencies or fund your child’s education, gold loans offer quick financing that can help you achieve your goals. They are also a good option if you want to avoid relying on credit cards and other debt options.
Unlike most microfinance loans, loans against jewellery are transparent and easy to understand. They allow borrowers to repay their loan in full at any point during the loan term.
IIFL Finance offers a simple and transparent gold loan scheme that enables borrowers to pledge their precious jewellery against a loan. Its pan-India network and doorstep service ensure a fast and seamless process.
Transparency is critical to a financial industry that provides essential products and services to consumers. It entails clarity about the prices of stock, market depth, audited financial reports and other key data.
