By Ravish Gupta
There are some occurrences in life where extra expenses are required in a short time. In such situations, the person’s regular source of income often falls short, and some monetary help is needed. In such cases, a gold loan becomes the preferred option as it is one of the fastest and most guaranteed funding sources. Gold Loans by formal institutions have become very popular in a short period, thanks to their flexibility and advantages.
Let us look at some of the purposes for which Gold Loans make perfect sense:
Business Expansion: In business, extra funds are often required for expansion or to meet sudden cash-flow needs. Additional liquidity helps tie over such sudden conditions and carry the business smoothly. Gold Loans can come in handy in such situations.
Educational Requirements: Sometimes education loans may not be available for various reasons like not having adequate collateral or not having a good enough credit profile. In such cases, depositing the fees for a family member who has qualified for admission to a good college may only be possible by taking credit, and Gold Loans make perfect sense here. There are many flexible repayment options for Gold Loans, and the interest rates are lower than other types of loans.
Healthcare: There are often when someone in the family falls ill or meets with an unfortunate accident and requires a large amount of money for treatment. Gold Loan can be a preferred option as the interest rate is low, thus safeguarding a borrower for heavy EMIs.
Wedding: A family wedding often involves spending a considerable amount of money. If the funds are not available internally with 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.
Vacation: Going on a dream vacation, be it a honeymoon or a relaxed holiday to an exotic destination, can cost a fortune. Since Gold Loans can be availed with no fixed purpose and can be used as needed, it solves the purpose of meeting expenses like flight costs and hotel stay at any location in India or abroad.
(The author is Business Head – Gold Loan, Capri Global Capital Ltd. Views expressed above are his own and not necessarily of financialexpress.com)