For many people who have had financial difficulties in recent years or even decades, obtaining a personal loan is one of the best ways to obtain credit.
Although personal loans offer several benefits, like quick credit approval, they are typically turned down by many applicants since they are unsecured. The most common of these problems include low income, a lack of credit history or a low credit score, a high EMI to income ratio, etc.
If your personal loan application is denied and you want to apply for another loan, you might not know what to do. You should consider applying for an IIFL Gold Loan at the low and alluring gold loan interest rate if you are in a position where doing so makes sense for you and you have a large amount of gold assets you can use as collateral. For a variety of reasons, gold loans have solidified themselves as a competitive alternative to personal loans.
So let’s look at the several benefits of obtaining a rupeek gold loan.
Gold-backed loans are often paid back rather fast.
Despite the fact that your online or mobile personal loan application was denied, be positive. Several gold loans with exceptionally cheap interest rates are still available. Of all available credit choices, they unquestionably require the least amount of documentation, allowing gold loan providers to release them quickly, and frequently even instantly. Gold loans are secured against the customer’s pledged gold. However, the majority of rupeek gold loan are paid back on the same day that the borrower submits the loan application. They develop a reputation for being a quick source of money as a result, frequently even quicker than personal loans.
You may use the borrowed monies in any way you choose.
The applicant is immediately credited with the proceeds of the loan as well as those from additional lending choices like personal loans and top-up home loans after approval and sanction. As long as you don’t take any risks, you can utilize the money anyway you like. This is accurate whether the money is needed to pay for a wedding, a child’s college expenses, or your own personal medical expenses. This characteristic unites both personal loans and IIFL Gold Loan, making them complementing options.
When approving a rupeek gold loan, little consideration is given to the borrower’s credit history.
Even if your application for a personal loan was denied due to your bad or nonexistent credit rating, there is still reason to celebrate. When applying for a loan secured by gold, there is little to no need to be concerned about one’s credit score.
Most lenders, including the lender for the gold loan interest rate, do not take the applicant’s credit score into consideration when considering a gold loan application because a gold loan is totally secured by the gold pledged as collateral. For those with bad credit or no credit who would have difficulty qualifying for other loan kinds, such personal loans, where credit score is a key element in determining loan eligibility and lending rates, IIFL Gold Loan are without a doubt a terrific option.
There are additional ways to repay gold loans besides EMIs.
Understanding the range of loan repayment choices that Gold Loans offers to its customers is essential. The main advantage is this. If you tried to apply for a personal loan but were declined, this is quite helpful. If the regular EMI option is chosen, the borrower is required to make equal monthly payments for the principal and interest of the rupeek gold loan.
Customers of many businesses who provide gold loans have the option to postpone principle payments until the loan’s maturity date. By following this personalized repayment plan, customers are only need to pay interest on the loan each month; principal payments are postponed until the gold loan’s term has ended.
Paying solely the interest when the loan is approved and deferring principal payments until the loan’s term is up is another non-EMI repayment option. Throughout the Loan’s term, the Borrower will always have the choice to pay interest.
Additionally, a number of gold loan businesses provide lenient terms for repayment. Because it enables the borrower to repay both the principal and the interest rate component of the gold loan at the conclusion of the IIFL Gold Loan repayment period, this gives the borrower greater flexibility when it comes to repaying borrowed money.
Based on the cash flow and other financial commitments you have, you can wisely be selecting the most beneficial mode of gold loan repayment. Only select irregular EMI options; otherwise, select regular EMI if your income and cash flow are problems. If your sales and cash flow are erratic, take into consideration the anomalies.
You will receive the gold you pledged once your loan is fully repaid. Instead of selling the gold asset completely to obtain cash, you can leverage it by taking out a rupeek gold loan. If you borrow money instead of selling the item, your odds of getting the item back from the lender once the debt is entirely returned increase.
Consider these other personal loan options if you need money in addition to gold loans.
a loan secured by real estate, an insurance policy, a bank-held fixed deposit, or another kind of loan.
pledging assets, such as stocks, bonds, mutual funds, and other securities, as security for a credit card loan
Despite the fact that a IIFL Gold Loan has many advantages, individuals who may not be qualified for one can look at the list of alternative loans above to find a means to pay their bills. Before determining whether or not to submit an application, take into account the applicable interest rates, terms of repayment, amount of loan, associated fees, and other features of the different loan options.
Dont jump to any conclusion without careful and thorough analysis, as once the loan is taken and sanctioned, you need to timely repay the EMis from your own pocket, and failure to do so can harm your financial health considerably.