Gold Loan
A gold loan is a secured loan where borrowers pledge their gold jewelry, coins, or bars as collateral to obtain funds. This type of loan is popular due to its quick processing, lower interest rates compared to unsecured loans, and flexibility in usage.
Key Features
- Quick Disbursement: Funds are disbursed rapidly, often within a few hours.
- Lower Interest Rates: Generally lower interest rates compared to unsecured loans.
- Flexible Repayment Options: Various repayment options including EMI, bullet repayment, or interest-only payments.
- No Credit Score Requirement: Minimal impact of credit score due to the secured nature of the loan.
- Retain Ownership: The gold remains in the borrower’s ownership and is returned after loan repayment.
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