Gold Loans: Myths debunked and facts revealed

Gold Loans have been a trusted financial tool for centuries, yet several myths surround them, causing potential borrowers to hesitate. By understanding the truth about Gold Loan eligibility, Gold Loan interest rates, and more, you can make informed decisions and leverage this financial product to your advantage.

Common myths about Gold Loans

1. Myth: Only those in financial trouble take Gold Loans

Reality: This is a significant misconception. Gold Loans are not solely for those facing financial difficulties. Many individuals, including business owners and professionals, use Gold Loans to fund opportunities, such as expanding a business, financing education or making investments.

2. Myth: Gold Loans have high interest rates

Reality: Contrary to popular belief, Gold Loan interest rates are typically lower compared to unsecured loans like Personal Loans or Credit Card debts. The interest rate on a Gold Loan is influenced by factors such as the amount of gold pledged and the lender's policies.

3. Myth: The bank can sell your gold at any time

Reality: Lenders are bound by strict regulations and cannot arbitrarily sell your pledged gold. They must follow a legal process if a borrower defaults, which includes issuing notices and providing opportunities to repay the loan.

4. Myth: Only gold jewellery is accepted

Reality: Many believe that only gold jewellery can be pledged for a Gold Loan. However, gold coins and gold bars are also acceptable, provided they meet the lender's criteria. This flexibility allows you to use various forms of gold assets to secure a loan.

5. Myth: Poor credit history disqualifies you

Reality: One of the significant advantages of Gold Loans is that they are secured loans, meaning your credit history has minimal impact on your eligibility. The gold you pledge acts as collateral, reducing the lender's risk. This makes Gold Loans accessible to a broader range of individuals, even those with poor credit scores.

Axis Bank Gold Loans

Axis Bank Gold Loans provide quick access to funds, offering high-value loans ranging from ₹25,001 to ₹40,00,000. With these loans, you benefit from fast disbursement, with funds available within just 60 minutes. The repayment terms are flexible, ranging from 6 to 36 months.

You can use gold jewellery, coins or bars as collateral, making the loan accessible even with a poor credit score. Your pledged gold is securely stored in bank vaults, ensuring safety.

The interest rates are competitive, typically lower than unsecured loans, and the documentation process is simple, requiring basic KYC documents.

Also Read: Benefits of taking a Gold Loan

Conclusion

Understanding the myths and facts about Gold Loans is essential for making informed financial decisions. Gold Loans offer a flexible, quick and secure way to meet your financial needs without the hassle of stringent eligibility criteria or high interest rates.

By learning about common myths and realities, including Gold Loan eligibility, you now have the clarity needed to consider a Gold Loan as a viable financial option. Partner with Axis Bank and secure the funds you need today!

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author shall not be responsible for any direct / indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision