Gold Loan for Debt Consolidation: How it Helps Manage Finances Easily?

Thanks to fintech, getting an instant gold loan, a personal loan or any other loan, has become a lot easier. In fact, today you can get a loan in a matter of hours, minutes even, depending on the lender you choose.

While this easy accessibility helps you meet your needs without any hassles, ensuring timely repayment is your responsibility. Although many instant gold loan lenders offer repayment flexibility, having too many loans can make managing repayments difficult.

A simple solution to this is debt consolidation and there are many ways you can avail of this option. Here, an instant gold loan can prove to be more beneficial for debt consolidation. Read on to know why.

What is Debt Consolidation?
Before delving into why an instant gold loan is a smart option for debt consolidation, understanding debt consolidation is crucial. Debt consolidation, in simple terms, means paying off your existing credit with a cost-effective solution.  

With this option, you take on a new loan to repay all your other loans in one instalment every month. As such, instead of making multiple monthly instalments, you make only one instalment as a repayment for all your loans. 

This in itself enables you to enjoy many benefits, and by availing a gold loan in Delhi or in other areas to consolidate your loan you can manage your finances more efficiently. 

Benefits of Gold Loan for Debt Consolidation
Besides the fact that you don’t have to worry about multiple EMIs or active credit accounts, debt consolidation has other perks. 
●    Reduces Borrowing Costs
Debt consolidation by itself helps reduce your borrowing costs as the overall interest outgo does get reduced. This is because your credit accounts will have different interest rates. However, by consolidating it, the average interest rate can be lower than the overall rate.

This is exactly why a gold loan is a good option, and this is because it is a secured loan. These generally have a lower interest rate as compared to unsecured loans. As such, an instant gold loan for debt consolidation can become more beneficial than other forms of credit that generally have a higher interest rate. 

However, be sure to compare and choose a lender that offers the best option.

●    Offers Higher Loan Amount
In other forms of credit for debt consolidation, like a personal loan or a credit card, the amount you can avail is fairly limited. It generally depends on your eligibility, and lenders may have strict terms. As such, you may not get the amount you need, causing financial strain.

However, in an instant gold loan, the amount you can get as a loan depends on the value of your gold. As such, if the value is high, you can get a higher amount. Moreover, the increasing gold price enables you to get more from your asset and keep your financial wellbeing secure.

●    Makes Repayment Easy
Other debt consolidation options may not offer flexible repayment terms with a higher loan amount. However, if you avail of a gold loan in Delhi or anywhere else, you can get higher loan amount and repayment flexibility.

This adds to the easier repayment benefit of debt consolidation. This is because you can easily manage your repayment through a single instalment and make the instalment amount manageable.

●    Lowers Risk of Debt Trap
Debt consolidation in itself restricts your ability to take on a new credit. This helps ensure you do not end up in a debt trap and put your financial wellbeing at risk. An instant gold loan in this case becomes more beneficial as it helps keep your repayment manageable. 

This, in turn, can help reduce the need or possibility of getting a new credit to meet your finances. As such, you are less likely to get into a debt trap and jeopardise your financial health.

Other Benefits of a Gold Loan
●    Affordable
An instant gold loan is a secured loan and therefore available at a lower interest rate than an unsecured loan. This reduces your borrowing costs and keeps your EMI more manageable, making it affordable than other options.

●    Multipurpose
While you can get an instant gold loan to consolidate your debt, you can avail a gold loan for other purposes too. This includes business investment, education, emergency, and more.

●    Accessible
With advancements in fintech, you can now apply for a gold loan in Delhi as well as other states and cities with just a few clicks. Today, lenders offer doorstep facility, eliminating your need to visit their branch and giving you quicker access to funds. 

Moreover, lenders do not have stringent eligibility criteria for a gold loan. This coupled with reduced borrowing costs makes the loan accessible and preferable.

●    Asset Security
When you avail of an instant gold loan, you pledge your gold as security with the lender. The lender returns your asset after you complete the repayment. During the loan tenure, the gold is stored in secure vaults, ensuring maximum safety all through.

How to Apply for a Gold Loan?
Today, a majority of the lenders offer an instant gold loan through a digital application. As such, you need minimum information and time. 

To apply for a gold loan in Delhi or anywhere else, follow the steps outlined below:
●    Visit the lender’s website
●    Navigate the instant gold loan tab
●    Click on ‘Apply Now’
●    Enter the required details
●    Submit the information

Once you submit the application, a representative will get in touch with you for further process. Be sure to choose a lender that offers the maximum amount as loan and at a competitive interest rate. 

Armed with above information, be sure to make smart decisions and manage your finances effectively to secure your financial wellbeing. Whether you apply for a gold loan in Delhi or anywhere else in the country, carefully go through the terms and conditions to make the best decision.

Use the online tools like eligibility and EMI calculator to optimise your instant gold loan and borrow efficiently. Doing so will enable you to consolidate your debt without adding undue burden or jeopardising your finances.