How buying gold can be the best way to procure small time business loans
Gold is the evergreen metal which never gets old. In India, no matter what the occasion is, people buy gold, and when there comes a situation of cash crunch then you can use it as a loan too. When there is a need for a loan for business purposes for a short period of time then the gold loan is the best answer. The gold loan has significantly gained popularity in recent years as they provide instant funds with lower interest rates. The increasing price of gold has made it easier for people to depend on it for business loans. For example, gold pendant design with price ranging from Rs. 5,000 to Rs. 1,50,000 are the best for procuring small time business loans. Many non-banking financing companies and banks provide a gold loan to people for personal as well as business purposes at lesser interest rates. Therefore, it is advisable to buy gold so that you can use the same at the hour of need.
What are the advantages related to buying gold for a business loan
● In exchange for gold, several banks and NBFCs can provide loan as high as Rs. 20 Lakh and as low as Rs. 50,000. Some banks can even give you loan amount less than Rs. 50,000.
● The good thing about the gold loan is that you do not have to provide any proof of your income. To avail the business loan, you only need to be present with an identity proof and an address proof. This could be anything – PAN card, driving license, Aadhaar card, Voter ID, passport and photograph.
● Lower interest rates give you the credit to opt for a business loan in an exchange with gold. These interest rates could range between 10 to 15 per cent.
● Reputed banks and NBFCs can offer 75 per cent loan for the value of gold. Also, the taxes you paid or the making charges are not considered when the value of gold is determined.
● The interest amount is to be paid on a monthly basis and the capital amount can be paid at the time of maturity. To repay the gold loans, several banks also offer EMI facility.
● If for any misfortunate reason, you are unable to pay the amount in the specified tenure, then as per the terms and conditions, you can again renew your gold loan for one or two years.
Gold is not only considered as a decorative ornament but has also played its role in people’s lives whenever there is a financial drop or when you need to work on your business to expand or start. You never know what a small gold pendant could do for you when there is a short of money while running a business and there is an urgent need for instant cash to stabilize it, thus for a small sum of money you can always rely on the gold that has been stacked in your cupboard.