Share
Medical emergencies can strike out of the blue and can be a huge strain on your finances. If you are in such a situation, an instant Gold Loan is a great way to attain emergency funds without hefty documentation and requirements. With a Gold Loan, you can easily borrow against your possessed gold jewellery or other assets and attend to a medical emergency faster.
Why Consider a Gold Loan for a Medical Emergency?
Medical emergencies create a significant financial burden on the family. If you need quick access to funds, an instant Gold Loan is one of the most trustable and hassle-free methods of securing it.
- Quick Access to Funds: In case of a medical emergency, timing is essential. Unsecured loans take a long time to process and have a long list of rigid criteria and a longer processing time.
This makes it almost impossible to access emergency funds at the time of crisis. With a Gold Loan, however, the process requires less time and effort.
This quick access to funds makes a Gold Loan for emergencies a smart alternative. - High CBIL Score is Not Mandatory: Regular, unsecured loans for emergencies require borrowers to have a high CBIL score. Lenders use the score to determine creditworthiness.
Having a CBIL score of 700 and above is considered ideal for securing a loan.
In the case of a Gold Loan, however, the loan is being taken against collateral, making your CBIL score a less impacting factor in determining the loan amount. - Flexible Loan Amounts: The amount of money you can borrow in a Gold Loan depends on the type, quality, and quantity of gold assets you can offer.
As per RBI guidelines, financial institutions can offer up to 75% of the collateral value as the loan amount.
Hence, your loan amount predominantly depends on how much collateral you can pledge to the lender, making it a more flexible option for emergencies. - Lower Interest Rates: Gold Loans typically carry lower interest rates than traditional loans.
The presence of collateral greatly affects the final loan amount and applicable interest rates. These low rates reduce the financial burden of repayment. - Flexibility in Type of Gold: You can acquire a Gold Loan against different types of gold assets. You can pledge not only gold ornaments but also gold coins and bars.
Gold coins should not weigh more than 50g and should be authorised by the government or should be bought from a recognised bank or jeweller. - Loan-To-Value Ratio: A loan-to-value ratio is the amount of money a lender can provide you against your pledged collateral.
Manappuram Finance Limited offers up to 75% of the current market rate on your pledged gold jewellery as your loan amount. - Minimal Documentation: Typically, a Gold Loan application requires minimum documentation to provide quick funds.
For instance, lenders like Manappuram Finance Ltd. only require a copy of your identity proof, address proof, etc.
With this need for minimum documentation, the application process becomes simpler and faster, ensuring you get access to the required funds instantly to handle the medical emergency.
How Does a Gold Loan Work?
- Secured loans: The first step in securing a Gold Loan is submitting your gold as collateral. Pledge your gold to the lender based on a loan amount, and interest rates will be calculated. Make sure of two things:
- The purity of the gold is between 18K and 24K.
- You are the owner of the gold you are pledging as collateral.
- Type of Gold Accepted: Check the gold assets that are acceptable to your chosen lender. At Manappuram Finance Ltd., we accept jewellery as collateral. This flexibility makes it easier for people to obtain Gold Loans during emergencies.
- Maximum Loan-To-Value Ratio: As mentioned above, the maximum LTV permitted by RBI is 75% of the collateral submitted. So, the amount you will receive in a Gold Loan for emergency will be up to 75% of the current market value of the gold you are pledging.
- Eligibility and Documentation: The eligibility and documentation criteria for a Gold Loan are much less rigid than those for a traditional loan. In order to secure a Gold Loan at Manappuram Finance, you must be at least 18 years of age and possess a valid proof of identity and address.
- Credit Approval: Once you have pledged your gold and submitted all the documents, the lender evaluates your gold and Gold Loan application. At the end of the approval process, the borrower receives the loan amount in their registered bank account.
Steps to Get a Gold Loan for Medical Expenses
The process to avail an instant Gold Loan is very simple and involves a straightforward process:
- Collect your gold items.
- You can apply to us either online or at your nearest Manappuram Finance Ltd. branch.
- Submit the gold along with the documents mentioned.
- Our officials at the counter will measure your gold and check its purity.
- Based on the evaluation, a loan amount will be stated to you.
- If you are okay with the amount being offered, you will have to sign the agreement papers. The agreement paper will also mention the tenure and the rate of interest for the loan.
- Once the paperwork goes through, you will receive the loan amount in your registered bank account.
Other Options in Loans for Emergencies
While a Gold Loan for emergencies makes a compelling case, you can also opt for a secured personal loan or a digital personal loan.
They may carry a comparatively higher rate of interest, but the application process is simpler, with minimum documentation and charges.
You can take a personal loan for any kind of emergency—from attending to a medical emergency to boosting your business to arranging funds to get married, the Manappuram Finance Ltd. Personal Loan for an emergency helps meet a wide range of your financial needs.
Conclusion
When a medical emergency arises, quickly securing funds is crucial. Using a Gold Loan can provide the immediate financial support you need.
With lenders like Manappuram Finance Ltd. offering instant Gold Loans, you can focus on getting the necessary medical care without added financial stress.