Financial planning is the key to a successful life and a tension-free retirement. However, even the best financial planners find themselves in a soup at some or the other time.
There may be a sudden cash requirement for an unplanned holiday or the college fees of your child, or a more serious event like a medical surgery.
An individual can arrange funds in several ways; taking a loan is the most prudent of them.
Out of the various loan options available to the customer, a loan against gold is becoming very popular in India.
A loan against gold or a gold loan offers several attractive features to the customers like low-interest rates, easy repayment options, minimum documentation, quick processing, and high loan to value.
If you are wondering what purposes you can take a gold loan for, here’s a complete guide to the purpose of taking a gold loan.
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What is the purpose of taking a gold loan?
Among the various benefits of a loan against gold mentioned above, the most significant feature is that the borrower has the freedom to use the loan amount as he wishes. Below are some common purposes for which people take gold loans.
- For business purposes: The coronavirus pandemic has left innumerable people struggling to restart their business ventures, which requires cash inflows. Business owners can get quick loans without having to justify the purpose by taking a gold loan from a trusted lender like Muthoot FinCorp. You may have a great business idea but no capital to execute it. In such a case also, a gold loan can provide funds for your dream project.
- For funding education: Some lenders offer education loans for higher studies, but they have several restrictions on the loan. Lenders usually give an education loan for only premium colleges, and a student seeking admission to an average college may not get an education loan. Additionally, education loans only cover college expenses and do not account for airfares, accommodation expenses, books, etc. A gold loan can give ample funds due to its high LTV to cover all these expenses without putting restrictions on the choice of college and course, like education loans.
- For a dream wedding: Weddings are a huge affair in India. People are opting for lavish theme weddings and extravagant destination weddings carried out with all pomp and show. You do not need to compromise on the wedding arrangements or your wedding dress due to a shortage of funds. Take a gold loan at low-interest rates from Muthoot FinCorp, where gold loans start at only 11.99% per annum and plan a memorable wedding.
- Miscellaneous expenses: Sometimes, an individual may not need funds for a single purpose but for a variety of reasons. He could need money to get a new air conditioner, renovate the kitchen, buy a new phone, or get surgery done. Getting individual loans for such expenses is impossible, instead, you can get a gold loan quickly from Muthoot FinCorp by giving only your ID and Address proof as documents and covering all such miscellaneous expenses.
Muthoot FinCorp offers gold loans ranging between Rs. 1500 and Rs. 50 lakhs for a low processing fee between Rs. 20 and 0.25% of the loan amount.
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