Many people who are short on money have found that the option of obtaining a personal loan, which may be beneficial and popular, is one of their best choices in recent years or even decades.
However, because personal loans are unsecured, applications of a great number of applicants are turned down for many reasons, the most prevalent of which include a low income, no or a low credit score, a high EMI-income ratio, etc.
However, if your application for a personal loan is denied, you may find yourself wondering what steps to take next. When faced with such circumstances, it is prudent to take out a gold loan at the low and attractive gold loan interest rate, provided you have sufficient gold assets that you can sufficiently pledge as collateral. Gold loans have been a powerful personal loan alternative for a number of reasons.
So let’s have a look at the variety of advantages that come with taking out a gold loan, which shows why a person who was turned down for a can instead take out this loan in order to meet their financial needs.
Quick distribution of the monies
When you find out that your application for a personal loan on the website or app has been denied, don’t let the news depress you since you still have options available to you in the form of gold loans and that too at a relatively cheaper gold loan interest rate in the form of manappuram gold loan interest rate. They undoubtedly involve the lowest level of documentation among the different forms of credit, which is why gold loan lenders are able to disburse them quickly and often even instantly. Gold loans are secured by the borrower’s precious metals. However, the majority of gold loan disbursements take place on the same day that the loan application is submitted. This further strengthens their stature as a super quick source of credit among all of the available credit options and can even turn out to be quicker than a personal loan in some cases.
There are no restrictions placed on the loan amount’s intended use.
Gold loans, like other loan alternatives such as personal loans and top-up house loans, do not contain any restrictions on the final usage of the loan amount, which is credited to the applicant’s account upon approval and sanction of the loan. You are free to spend the money any way you like, as long as it is not put toward speculative endeavours. This applies whether the money is needed to pay for your child’s higher education, your wedding, or medical bills.
As a result of the fact that both a personal loan and a gold loan share this characteristic, we can consider the former and the latter to be complementary alternatives to one another.
There are no hard and fast rules regulating credit scores.
If you have found out that your application for a personal loan was denied due to your low or nonexistent credit score, there is another reason to be upbeat about the situation. When applying for a loan against gold, there is a limited or sometimes nonexistent need to worry about one’s credit score.
The majority of lenders, including manappuram gold loan interest rate lenders, do not place a great deal of importance on the applicant’s credit score when considering an application for a gold loan because the loan itself is fully secured against the asset that is pledged, which is gold. This is certainly what makes a gold loan a viable choice for applicants with a low or no credit score, as they can find problems in availing of other loan options like personal loans, in which credit score is a vital aspect not only for loan eligibility but also for determining lending rates as well.
The availability of a variety of alternative methods of repayment to EMI
In addition to the regular EMI option, which requires the borrower to make repayments on both the gold loan interest rate as well as the principal component of the loan on a monthly basis in the form of EMI, gold loans offer borrowers a wide variety of other options for loan repayment, which is another important benefit to keep in mind, especially if you have been turned down for a personal loan.
The repayment of the principal component of the gold loan is not required to begin until the maturity date of the loan, which is offered by many gold loan lenders as a flexible option. This customised repayment option requires borrowers to only service the manappuram gold loan interest rate component of the loan each month, while the repayment of the principal component is deferred until the maturity of the tenure of the gold loan.
Another non-EMI repayment option is to repay only the interest part upfront initially at the loan sanction time, and don’t worry, the principal component’s repayment can be made at the end of the gold loan’s tenure. This option allows the borrower to avoid paying interest on the loan for the entire duration of the loan.
Last but not least, some of the gold loan-providing lenders do tend to also offer bullet repayment. This allows the borrower to repay both the principal and the gold loan interest rate component of the gold loan at the end of the gold loan repayment tenure, providing the borrower with more flexibility regarding the repayment of borrowed funds.
You are responsible for selecting the appropriate mode of repayment in accordance with your available resources. Go for the non-regular EMI options only if you have cash flow and income issues, and go for the regular EMI option if you have cash flow and income issues. If you have cash flow and income issues, go for the non-regular
After successfully making all of your loan payments, the ownership of the gold that you pledged will be returned to you. You don’t have to completely liquidate the gold asset in order to get access to funds; rather, you can leverage it by taking out a gold loan. Because of this, you are able to take out a loan against the asset rather than having to sell it, which leaves open the possibility that the lender will return the item to you once you have finished repaying the debt.