Opting for a Gold Investment in Emergencies

Financial planning is a necessary activity for being debt free. Apart from the usual practice of managing budgets, its important to consider contingencies and save for them. However, these events require having fund or a strong insurance cover to avoid burden on the savings.

Your planning may still fall short to life’s uncertainties and be forced to take loans to meet the financial requirements.

These uncertainties may be due to economic conditions or conditions beyond our control, it can be urgent medical fees, school fees, any major debts to be paid off immediately, raising funds for a new venture etc. reasons can be numerous. An alternative approach to meeting your uncertainty needs without talking a loan would be opting for a gold loan. The price of Gold in comparison to other forms of investment has only grown in the last 50 years, in addition to this it is a stable form of investment.

Let’s have a look at some benefits of taking a gold loan:

Interest rates

‘Gold’ is a collateral which means a secured form of loan. Secured loans carry lesser interest rate in comparison to unsecured loans.

Loan amount

Keeping gold as a security enables you to borrow a significantly higher loan amount. This plugged with the quantity, weight and carat of your gold will enable you to borrow higher amounts.

Repayment options

In comparison to other forms of loans Gold loan has the most flexible ways options of repayment. Below are some of the repayment options:

·       Partial payments

·       One shot payment at the end of the tenure

·       Regular EMI

·       Eligibility criteria

When borrowing loans factors like income, credit score, employment status plays a key role in determining your eligibility, when it comes to a Gold loan any individual with gold ornaments is eligible.

It is high time to start investing in Gold as a security. So, if you ever are in a situation where you have gold ornaments or gold in any form of jewelry you can explore the Gold loan option.