For years or even decades, getting a personal loan has been one of the best options for many people who are in need of money. Because personal loans are unsecured, many applicants, for a variety of reasons—the most frequent being low income, a high debt-to-income ratio, lack of credit history or score, etc.—have their personal loan gets rejected.
However, you might not know what to do if your application for a loan for low salary is denied. It makes sense to obtain a gold loan at a competitive interest rate if you have sufficient gold assets to offer as collateral. Gold loans have been a successful alternative to personal loans for a number of reasons.
You can see why someone who was turned down for a loan can use this one to meet their needs now that you’ve seen the many advantages of getting a gold loan for low salary.
Quick distribution of funds
The news that your website or app application for a personal loan was rejected shouldn’t bring you down; gold loans are still an option, and they have interest rates that are significantly lower. Due to the minimal documentation needed for gold loans compared to other credit types, lenders are able to release funds rapidly, frequently in real-time. Collateral for gold loans is the borrower’s precious metals. Having said that, the majority of gold loans are paid out the same day the loan application is submitted. As a result, they are now more solidified as the fastest credit source available—sometimes even faster than an instant loan without cibil.
The amount of the loan has no restrictions on its use.
Gold loans are similar to personal loans and top-up home loans in terms of loan options; the borrower receives the entire loan amount immediately upon approval and sanctioning, with no restrictions on how they can use it going forward. You can spend the money however you like as long as it’s not used for riskier endeavors. This is valid whether the money is needed for your wedding, your child’s additional education, or your medical bills.
Because both personal and gold loans have this feature, we can think of them as complimentary options.
If you’ve discovered that your application for a personal loan for a low salary was denied due to your poor or nonexistent credit score, you have even more cause for celebration as a gold loan is a form of instant loan without credit. When applying for a loan secured by gold, one shouldn’t worry too much—if at all—about their credit score.
Since a gold loan is entirely secured by the gold pledged as collateral, most lenders do not consider the applicant’s credit score when reviewing an application. This is without a doubt the reason that applicants with poor credit or no credit should think about gold loans, as they might have problems getting other loan options, like personal loans, where interest rates and loan eligibility are determined by credit score.
A plethora of choices to consider when making an EMI repayment
Gold loans give borrowers several options for loan repayment in addition to the standard monthly installment plan (EMI), which calls for repayment of the principal and interest rate. It is important to keep this benefit in mind, especially if you have been denied a personal loan.
Many providers of gold loans offer a flexible option that allows the principal to be deferred until the loan’s maturity date. Borrowers only have to pay back the interest-only portion of the loan under this customized repayment plan; the principal is deferred until the loan matures.
Another non-EMI repayment option is to pay back the interest only at the time the loan is approved. You can still return the principal amount at the end of the gold loan’s term, so don’t worry. The borrower may elect to waive interest on the loan for the entire loan amount by utilizing this option.
Finally, and perhaps most significantly, a small minority of lenders who provide gold loans also frequently include bullets in their repayment terms. Because borrowers can return both the principal and interest rate component of the gold loan at the end of their repayment tenure, they have more flexibility in how they repay the funds they have borrowed.
You must determine which repayment plan, considering your financial circumstances, is most appropriate for you. Select the regular EMI option over the non-regular one if your income and cash flow are problematic. If you’re struggling to make ends meet, you should think about the non-regular
After your instant loan without cibil is fully repaid, you will once again be the owner of the gold you pledged. Rather than having to sell all of your gold assets to raise money, you can take out a gold loan and borrow against them. This allows you to borrow money rather than having to sell it and increases the likelihood that the lender will return the item to you after the debt has been settled.
You can also consider a credit card loan if a personal loan is rejected
Ever wonder what the uses of a credit card are? Your credit card has many benefits, whether it’s for unexpected expenses, a shopping trip, or an item you’ve planned to buy on no-cost EMI. But that is not all, as credit cards as a concept and the range of benefits of those handy little plastic cards have changed over time. A relatively newer benefit of credit cards is loans. Nowadays, numerous banks frequently offer credit card loans which are even offered to those users who want a loan for low salary.
Credit card loans function in an identical manner to other loan types that you may apply for, like a personal loan. The bank carefully reviews your credit history, credit score, repayment history, and other relevant financial information after receiving your application for a credit card loan before approving the instant loan without cibil, either above or below your credit limit. A variety of distinct financial factors are taken into consideration when determining interest rates for these loans, and the credit card loan rates are usually 1-2% higher than personal loan rates, which range around 105-26% p.a.
