Is It Wise To Buy Gold With A Personal Loan?
The Indian obsession with gold is no surprise. And over time, people have turned to the precious yellow metal for investment. No wonder that up until 2012, many lenders even offered loans specifically for gold investments.
However, since RBI’s blanket ban on lending institutions in 2012, one cannot avail of gold loans in the traditional sense. What you can do instead is get a personal loan to buy gold from a reputed lender. But is it a wise decision? Well, let us take a look at the advantages of securing personal finance to buy gold.
No need to provide a reason
You can easily get a personal loan from a lender without specifying a reason to your lender. So, whether you require funds for marriage, jewellery, education, travel, or even buying gold, you can easily secure them through this loan.
No requirement of collateral
Loans for personal use are provided collateral-free. Naturally, you never have to give up your assets as collateral to get a loan.
Additional Read – Is a Gold Loan Better Than a Personal Loan?
Easy to meet eligibility criteria
Though the personal loan eligibility criteria vary slightly from lender to lender, they are fairly easy to meet. Most lenders only require you to be an Indian national with a stable job and earn a minimum monthly income to apply. So, make sure you check the eligibility criteria carefully before applying.
When you opt for personal finance, you don’t need to run around to get your documents in order either. The reason? Lenders require only a handful of documents, including your photo ID proof (like Aadhar Card or Voter ID), Income proof (bank statements, ITR filings), copy of salary slips, Address proof, etc., for verification.
Flexible repayment options
Did you know you could pay off loans on your own terms? Yes, with personal finance, you can! Many lenders allow you to choose your repayment tenure, and some even offer structured repayment plans based on your credit handling capacity.
With this much flexibility, you can easily pay off a loan on your own terms without stressing out your finances in the process.
Once your loan application is approved, the loan amount is disbursed straight to your bank account. What’s more, if you want to speed up the approval process, you can even get your loan application pre-approved!
Given these advantages, there’s no denying that if you’re looking for a financing option to purchase gold in any form, personal finance is the way to go. However, before you invest, remember the gold market is highly unpredictable, making short-term holding extremely risky. Hence, only use a loan to finance your gold purchase if you’re planning on holding them for a long time.
Looking for a finance partner to get a loan? Turn to SmartCoin Financials! We offer tailor-made loans at competitive personal loan interest rates and only require minimal documents for verification. Best part – you get your funds directly into your bank account, in just minutes!