Exploring the Various Types of Gold Loans for Quick Funds
When you need quick access to cash, gold loans offer a convenient and secure way to get funds by leveraging your gold ornaments. With rising popularity, various types of gold loans are now available in India to meet different financial needs. Let’s explore the key types of gold loans you can consider. 1. Term Loan A term gold loan is the most common type. You pledge your gold and receive a lump sum amount, which you repay over a fixed tenure in EMIs. It’s ideal for planned expenses like education, medical bills, or weddings. 2. Overdraft Facility This type of gold loan works like a credit line. Based on your gold’s value, a credit limit is sanctioned, and you can withdraw funds as needed. Interest is charged only on the utilized amount, making it perfect for business owners and self-employed professionals who need flexible funding. 3. Bullet Repayment Loan In this option, you pay the interest and principal amount together at the end of the loan tenure. It is a great option if you expe...