Many people who are strapped for cash in recent years or even decades have realised that obtaining a personal loan, which may be advantageous and popular, is one of their finest options. This is something that many people have learned in recent years or even decades.
Because personal loans are unsecured, the applications of many borrowers are often denied for a variety of reasons. The most common of these reasons are a low income, a lack of credit history or a low credit score, a high EMI to income ratio, etc. However, the fact that personal loans are unsecured means that the majority of these applications are denied.
In the event that your application for a personal loan is declined, you could be at a loss as to what steps to do next. If you are in a position where obtaining an IIFL Gold Loan makes sense for you and you have a substantial amount of gold assets that you can use as collateral, then you should consider doing so at an IIFL Gold Loan Interest rate that is both reasonable and appealing. For a variety of different reasons, gold loans have proven to be a trustworthy alternative to personal loans.
Let’s take a look at the several benefits of receiving a gold loan to determine why an individual who was denied a traditional loan would be able to obtain this type of loan instead in order to satisfy their monetary requirements.
Quick release of loan proceeds
Don’t let the news that your application for a personal loan on the website or app has been denied depress you; you still have options available to you in the form of gold loans, and that too at a relatively lower IIFL Gold Loan Interest rate. Of all the credit choices, they unquestionably require the least amount of documentation, allowing gold loan providers to release them quickly, and frequently even instantly. Gold loans are secured by the borrower’s gold. However, the majority of gold loans are paid back on the same day that the borrower submits the loan application. This strengthens their image as one of the options’ fastest sources of credit, and in some cases, they might even be faster than personal loans.
There are no restrictions on how the Loan Amount is supposed to be used
Similar to other lending choices including personal loans and top-up home loans, the loan money is automatically credited to the applicant’s account upon approval and sanctioning of the loan application. As long as you don’t invest them in risky ventures, you are free to use the money anyway you see fit. This is valid whether the money is needed to pay for your wedding, your kid’s tuition, or your own medical bills.
This trait is shared by both a personal loan and an IIFL Gold Loan, thus we might consider them to be complementary alternatives to one another.
There are no clear laws that control credit scores
If you discovered that your application for a personal loan was denied because your credit score is subpar or nonexistent, there is still cause for celebration. When applying for a loan secured by gold, there is little to no need to be concerned about one’s credit score.
Most lenders, including the lender for the IIFL Gold Loan Interest rate, do not give the applicant’s credit score much weight when assessing a gold loan application because a gold loan is totally secured by the pledged collateral, which is gold. This is unquestionably what makes gold loans a viable alternative for borrowers with bad credit or no credit, as they could have trouble qualifying for other loan options like personal loans, where credit score is a key element in determining both loan eligibility and lending rates.
A variety of payments methods besides EMI being available
The fact that gold loans allow borrowers a variety of additional possibilities for loan repayment is another key advantage to keep in mind, especially if you have been turned down for a personal loan. This is in addition to the standard EMI option, which calls for the borrower to make monthly EMI repayments for both the interest component of the gold loan and the principle component of the loan.
Many gold loan lenders give customers the flexible choice to postpone principal repayment of the loan until the loan’s maturity date. This customised repayment option, which requires that clients solely service the loan’s interest rate component each month, delays the principal repayment of the loan until the IIFL Gold Loan‘s tenure is finished.
Paying only the interest part when the loan is approved and deferring paying back the principle until the end of the gold loan’s term is another non-EMI repayment option. The borrower has the option to choose not to pay interest on the loan for the duration of its term.
Not to mention, some of the lenders that provide gold loans frequently provide bullet repayment choices. By allowing the borrower to repay both the principal and the IIFL Gold Loan Interest rate component at the end of the gold loan repayment period, this allows the borrower greater flexibility when it comes to repaying borrowed cash.
Based on the resources you have, you are in control of selecting the most advantageous mode of repayment. Use the irregular EMI alternatives only if you are having issues with your income and cash flow; otherwise, select the normal EMI option. If you are having issues with income and cash flow, think about the irregular
Once you have repaid your debt in full, the gold that you promised will be returned to your possession. Instead of needing to completely sell the gold asset to get money, you can leverage it by taking out a IIFL Gold Loan. As a result, you can take out a loan against the asset rather of having to sell it, increasing the possibility that the lender will return the asset to you after the debt has been fully repaid.