If you need quick money to pay for school fees, expand your business, for weeding to pay for your dream holiday destination, or for buying a house, then you don’t need to go for a personal loan. If you have some gold jewellery lying in your house, then that is the quickest way to get funds. Any bank in Melbourne and Australia at large will be willing to offer you instant loans equivalent to the value of your gold. According to Australia Bureau of Statistics, gold loans are controlled by the Reserve Bank of Australia (RBA).
Why Gold Loan?
Gold is used as storage of value by banks in Australian and worldwide. That is why its value has been increasing constantly over the years. It does not depreciate and that is why most financial institutions prefer to other collaterals such as property (land) or cars. However, there are numerous benefits that make loans against gold the options to most borrowers. Here are some of the key benefits getting loans against gold.
Fewer Requirements
Getting a loan against gold is very easy compared to a normal bank loan. First, you do not require tons of documents to access these loans. According to Cash Stop Financial Services Pty Limited, gold dealers in Melbourne, all you need to secure these loans is a photo ID and Proof of Current Address. That will be enough for you to secure a loan.
Faster Processing
Unlike other bank loans that require for the valuation of the collateral before the loan can be processed, gold loans are different. They are backed by physical gold and thus the only process that could take place is checking whether the gold is genuine and then its value. That means you can get into the bank and come out with a loan. That is what makes gold loans great option for quick cash.
Lower Interest Rates
The level of interest rates is another major benefit of loans against gold. There are many reasons why banks would tend to attach lower interests compared to other loans. First, the loans are categorised as “secure loans.” That is because the bank has the actual collateral (gold) and they can sell it any time if the borrower defaults. It can even go lower if you attach another security as collateral to the gold loan.
No-Income Proof Required
You don’t need to be employed or proof any form of revenue to secure these loans. That is a requirement for most of the loans especially the unsecured ones. That simply is because the bank or dealers will not have a problem recovering their money if you default.
Bad Credit Is Not An Issue
If you are a perennial defaulter, banks will have a problem trusting you with their money. In fact, no one will be willing to lend you money if you have a bad credit history. But for the gold loans, that is not a worry. Any financial institution will be happy to offer you any loan equivalent to the value of the gold.
Conclusion,
If you have some gold lying in the house and you need quick cash, then a gold loan is one of the best options to consider. Any financial institution in Australia including banks will be willing to extend a loan equivalent to you gold. The processing is very fast and the interest rates are lower compared to unsecured loans. It is a great option to consider.
References
· http://www.abs.gov.au/ausstats/abs@.nsf/featurearticlesbytitle/E5753676ADBD3BD1CA2569DE002A3035?OpenDocument
· http://www.abs.gov.au/ausstats/abs@.nsf/0/DF7D14B0BF4FC3BBCA25697E0018FCF3?opendocument
· https://www.cashstop.com.au/pawn-broking/jewellery-loans/
· http://www.goldbuyersmelbourne.com.au/pawn-shops-melbourne.php
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