Use Your Gold Jewelry to Get Yourself a Loan in UAE
Dubai aka the city of gold in the UAE is one of the largest sellers of gold and diamond products in the world. The gold and precious metal industry in the country is one of the major revenue-generating industries of the nation after oil and tourism. Emiratis sell more gold than any other nation and attract a plethora of tourist from all across the globe in search of exquisite ornaments.
However, the gold industry in the UAE is not just beneficial for the government it plays a key role in sustaining and maintaining financial viability amongst residents of the country. The gold sector not only generates revenue but also creates numerous job opportunities that help Emirati and expatriate residents to make money in the UAE.
Unlike various other commodities that lose value with time, gold manages to maintain its value over time which makes it one of the most precious metals of all time. Financial institutions understand the value of gold based on the purity and weight of the metal. Gold these days has emerged as an effective tool to opt for an instant loan in the UAE
Obtaining Loan via Gold in the UAE
Very often we are stuck in situations that require immediate financial assistance and it becomes extremely difficult to arrange finances. However, gold loan is a unique solution to such situations that helps people to obtain an instant loan against gold jewelry. In such a situation all the individual needs to do is to visit the bank with the gold to obtain an instant loan.
A gold loan is easily obtained by recognized financial institutions like banks against gold as collateral with minimal documentation. The rate of interest applicable in the case of gold loans is quite low in comparison to other types of loans in the UAE. The repayment tenor is variable and depends upon the amount. Banks and financial institutions consider gold loans to a form of secured credit as the debtor provides gold as collateral to the bank against which the loan is disbursed.
The loan helps people in emergency situations in order to obtain easy and hassle-free credit to counter the strokes of uncertainties on the trail of life. Gold loans come with minimal documentation and are approved within a time period of 24 hours which is one of the fastest forms of obtainable credit in the UAE.
Benefits of Obtaining Loan against Gold
Individuals seeking for a loan in the UAE should be well aware of the fact that higher the gold rate in UAE will be higher will be the obtainable loan amount. This is mainly because with the higher gold rate in UAE the net worth of the metal will be higher which eventually will allow the financial institution to disburse loan amount equivalent to the worth of gold provided as collateral.
The price of gold is extremely dynamic and keeps on changing within hours, therefore all the transactions with respect to your gold will be carried out on the basis of the current gold rate in the UAE. In urgent need of a loan, one can simply open up a gold locker in a bank and simply contact the bank for processing the gold loan. There are several benefits of obtaining a gold loan that mainly include flexible repayment tenor, minimal documentation, quick disbursement of the loan along with low rates of interest in comparison to various other types of loan available in the UAE.
Strategies to Buy and Sell Gold in the UAE
One of the most common questions amongst people in the UAE is that how to extract the maximum benefit. The first step in the process is to keep a close track of the gold rate in UAE. As the simple thumb rule goes buying at the lowest and selling at the highest is the best way to extract the maximum benefit out of any commodity. The probability of gold rate falling lower than the purchase cost is very low and typically the gold rate in UAE usually increases linearly.
The simple and proven strategy here is to purchase the precious metal when the gold rate in the UAE is at its lowest and later sell it on the highest possible price based on the gold rate in the UAE. However, to make the most of the gold you possess it is recommended not to sell it. One must consider selling gold only if the selling price is very decent. Furthermore, keeping gold not only ensures financial security but various cultures consider it to be a carrier of good luck and fortune.
Gold loans are user-friendly easy to obtain loans that are available with minimal documentation at low rates of interest and flexible repayment tenors. These loans help people in emergency situations by providing quick financial assistance using gold.