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Different types of loans, and how does the gold loan work?

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Rupeek India approves the loan at a low-interest rate.

All loans are not equal. If you want to borrow money, know the type of loan apt for your financial condition. As you compare loans, a credit score is a vital factor. Utilize loans for purchasing various things in today's world. Use it for funding a start-up to buy appliances. In this article, we will talk about.

Different types of loan

How gold loan works 

Why gold loan is the best option for borrowers

Personal loans 
Most financial institutions sanction personal loans to their customers. It lets you use the amount for paying bills to buy a new laptop. Banks need customers to submit certain documents like asset proofs, payscale documents before sanctioning personal loans. 

Credit card
If you want to use a credit card, you need to fill in a form given by the card issuer. You've to pay a huge rate of interest linked to the money you borrow as a credit card loan. Use your credit card wisely and repay the amount on time. 

Payday loan 
It is likewise known as a salary loan. It is a short-term unsecured loan that needs the applicant to have a steady income source. Banks approve payday loans based on the income and age of the customer. Documents needed for salary loan include income documents and relevant proof. 

Loan against credit card
It is a pre-approved personal loan that acts against credit cards. It doesn't require additional document verification. Based on lenders, personal loans get converted to interest-free personal loans. It holds for a definite period. After some time, it adds an interest rate to the loan. It includes a processing fee linked with converting a credit limit assigned to the loan. 

Loan against gold
A gold loan is a share borrowed from the lender in exchange for gold ornaments and essential documents. The loan amount approved by banks is a portion of the value of golden ornaments. Payback through monthly installments and get back your gold ornaments. Do you want to know how gold loans work? The best part of availing a gold loan is that there is no specific end use of the amount. Fund your daughter's wedding, education, or vacation. 

Rupeek India approves the loan at a low-interest rate.

How does the gold loan work?
A gold loan works the same way as a secured loan. Borrowers take gold articles and a set of documents. After verifying the document, the lender approves the gold loan. According to the agreement, you pay back in fixed installments with the interest rate. Once you pay back the amount, you get back the pledged gold articles.

Why is a gold loan the best option for borrowers?

  • For gold loans, Rupeek India follows a fast and simple process. Borrowers need to submit collateral and essential documents. 
  • While a personal loan approves 40 lakhs to the borrowers, gold loan lenders let you borrow up to 1 crore. 
  • While a personal loan applies an interest of 17% to 22%, a gold loan has a lower interest rate of 5% to 13%.

 

Photo by  Zlaťáky.cz on Unsplash

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