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Top 10 Benefits Of Gold Loan

Check our top 10 benefits of Gold Loan at IIFL Finance. Know more about the features of Gold Loan and advantages of applying for gold loan at IIFL Finance

27 Oct, 2023 17:28 IST 4175
10 Smart Benefits Of Taking A Gold Loan

A large quantum of Indian households buy gold for religious and auspicious occasions, which they store in bank lockers. However, individuals familiar with the value of gold in the domestic market leverage the gold locked in the bank lockers to take a gold loan and raise adequate funds from lenders such as banks and NBFCs.

Gold loans have become widely popular because of their gold loan benefits. This article details gold loan advantages and benefits of gold loan.

Gold loans include numerous advantages that allow you to cover your expenses without draining your hard-earned savings.

1. Immediate Capital:

A loan against gold offers immediate funds approved  and disbursed after approval into the borrower's bank account.

2. No External Collateral:

Lenders provide the loan amount based on the total value of the gold ornaments without the need for any external collateral.

3. No End-Use Restrictions:

The borrower has complete freedom to use the loan amount without explaining the nature of each expense.

4. Added Liquidity:

Gold loans provide easy liquidity based on an asset otherwise dormant in the bank lockers.

5. Online Process:

The process to apply for gold loan is entirely online and does not require visiting the lender’s official headquarters. The loan application process is simple and quick.
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6. Minimal Paperwork:

The application process for gold loans requires minimal paperwork, which saves time and offers quick disbursals.

7. Gold Loan Tax Benefits:

If you use the gold loan amount for home improvement, the construction or purchase of a residential property or as a business expense, you can avail of gold loan tax benefits under section 80C.

8. No Credit Score:

Unlike other loans where a credit or CIBIL score above 750 is necessary to qualify, lenders offer the loan amount without a good credit score.

9. Lower Interest Rates:

Gold loans are secured loan products with comparatively lower gold loan interest rates than other unsecured loans. Low-interest rates ensure that the financial obligations are within the budget.

10. Security Of Physical Gold:

One of the best benefits of a gold loan is the security of the physical gold pledged by the borrower.

The lender keeps the gold in secured vaults and protects it further with an insurance policy against theft. The lender returns the gold to the borrower once they repay the loan completely.

Avail Of An Ideal Gold Loan With IIFL Finance

With IIFL Finance gold loans, you get industry-best benefits through our process designed to offer instant funds based on the value of your gold within short time of application. IIFL Finance Gold Loans come with the lowest charges, making it the most affordable loan scheme available. With a transparent fee structure, there are no hidden costs you have to incur after applying for the loan with IIFL Finance.

FAQs

Q.1: What documents are required to take a gold loan with IIFL Finance?
Ans: Documents required are Aadhaar Card, PAN Card, Driving License, Passport, Ration Card, Electricity Bill, and a few others. Visit the IIFL Finance gold loan page to get the complete list of gold loan documents to submit.

Q.2: What are the interest rates on IIFL Finance Gold Loans?
Ans: The interest rates on IIFL Finance gold loans are according to market.

Q.3: What is the gold loan tenure of IIFL Finance gold loan?
Ans: The maximum gold loan tenure is 24 months at  IIFL Finance

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Disclaimer: The information contained in this post is for general information purposes only. IIFL Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. Given the changing nature of laws, rules and regulations, there may be delays, omissions or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Gold/ Personal/ Business) loan product specifications and information that maybe stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Gold/ Personal/ Business) loan.

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