When we have cash crunch and feel that we need extra money to meet expenses, loans come in handy. The financial institutions give us immediate purchasing power so that we can invest in properties, organize wedding and other events, finance businesses, and sponsor our children’s higher education. Business loans, personal loans and home loans are terms that dominated the financial industry for some times. Therefore, Cash Loans in Cannock, cheque cashing Cannock, Payday Loans Cannock and other places of the world were the preferred options of people. But loans against jewelry have become a popularly chosen option in the recent times with the same schemes of loan retrieval from the financial institution. Let us make a comparative study on personal loans and gold loans. We will be able to know why loans against jewelry have become popular. |
• Guarantee becomes an issue
When people take personal loans from financial institutions, they do not have any collateral. But gold loans have your jewelry as the most dependable security for the financial organizations. Thus, the interest that is charged against the borrowed amount is comparatively higher in case of personal loans.
• Hidden charges exist
The same question of security strikes a difference between gold loans and personal loans. The absence of security makes the financial institutions ask you for authentication of your proof of income and address proof. The process of validation requires money. Eventually, the financial institutions ask for processing fee. It can range up to 1% of the amount you have asked for! Now you can imagine the amount of money you will have to pay as processing fee when you borrow a lump sum amount. But you are wavered from any processing fee or hidden cost when you go for gold loans. Since your personal jewelry works as guarantee, the financial institutions do not need any further documents.
However, if you are taking loan against jewelry from banks then you might be asked to pay some processing fee. But such fees not required by private financers who give loans against jewelry.
• Elaborate processing procedure
When people take personal loans, the banks and other financing agencies remain skeptical. They wish to ensure that the borrowed amount will be repaid in due course of time. Since they do not have anything that guarantees this, they ask for lots of documents and proofs. Consequently, case of gold loans.
The process of applying for loans and getting the borrowed amount becomes too lengthy at times. But nothing like that is experienced by people who take loans against their jewelry. The entire process of applying for loan and getting the money in the form of Cheque Cashing Cannock is incredibly faster in case of gold loans.
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