What is Gold Overdraft Loan Facility: Risk And Benefits

You don't need always a good credit score to get a loan. If you have gold with you, you can get a loan easily and spend as per your requirements. Using your gold for the loan purpose you can get easily a decent amount in your account for your spending needs. But how and where?

There are two ways you can get a loan credit over the gold. These are the Gold Loan Overdraft facility and Gold Loan EMI option. Using anyone, you can satisfy the various needs of life and fulfill your pending works with the loan amount. Which one you should select is determined by your financial needs.

However, the Gold overdraft facility might be a good option because it works similar to credit cards. A Credit Card is a widely used credit facility by consumers for spendings. In a Gold Overdraft loan is the amount you get is equal to your gold loan amount and it functions similar to using a credit card.

When you deposit gold as collateral with your lender, they create an overdraft account to which the loan amount equal to the value of the gold pledged is credited. Another option is to use cheques that are issued separately for the overdraft account to access the loan amount. In the case of an overdraft, the interest rates are significantly greater than typical. In addition, unlike a gold loan with an EMI option, an overdraftfacility payment option is a lump sum payment that may be stopped at any moment.

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