Loan for Purchase of Gold Jewellery

If there’s one truth about gold, it’s that it is extremely expensive. A simple pair of gold earrings might cost you half that month’s income – particularly if you have a specific type of gold in mind. Platinum (also known as white gold) is particularly expensive.

So, without a loan for the purchase of gold jewellery, it might be difficult to get to be able to afford it. In India, you can’t even get a loan for gold.

Luckily, though, you can in the U.S.! Whether it’s for a wedding ceremony or just for you, you can get a loan for the purchase of gold jewellery — read on to find out how!

Gold and Indian Weddings

People living in India know that no big wedding can actually be called a “wedding” without a tremendous amount of gold. They have henna-painted hands, elaborate saris – all of which will turn every Indian wedding into the beautiful kaleidoscope of ornaments and color. And considering that there is so much beauty going around, you can be sure that there’s going to be a lot of gold there as well.

In India, it does not matter how rich or poor you really are; your wedding will not be complete without gold jewellery. If you are lucky enough to have your own gold stashed away, consider yourself blessed. However, if you don’t want to break the bank, you can get a loan for purchase of gold jewellery.

Why does it matter, you might ask? It is because a wedding in India is a symbol of prosperity – the beginning of a new life. It is a time when you have to show off your wealth as you are embarking on this new journey. For this reason, many Indian brides take jewels to a new extravagant level. India is in love with gold, and that’s a fact.

The more gold you have on you, the more beautiful you are. Gold is actually so important in a wedding that the entire family starts saving up in advance. Gold can be found in the sari thread as well – but it is the gold jewellery that attracts the most attention. This is why you need to ensure that your wedding has it in abundance.

Other Reasons to Buy Gold

Ok, so you might not be getting married; this does not mean you don’t need the gold. There are various reasons for you to buy gold – among which are the following.

Hedge Against Inflation

Prices are rising every day along with the inflation – and as that happens, the value of the currency also goes down. In the long term, almost every major currency will have lost its value when compared to gold.

So, what do people do in this situation? Obviously, they tend to hold onto the money not in the form of currency – but instead, in gold. If the inflation remains high (particularly when it’s in double digits), it is a good idea to hang onto gold as a hedge against inflation.

It Is a Tangible Asset

There are very few valuable assets that are tangible – and gold is one of them. As a result, it leads to a perception of safety for the investors. Furthermore, buying gold is much easier to do than buying other assets that are tangible – for example, real estate. Gold can be bought one bit at a time and its value will go up with every purchase.

Gold is also superior to the assets that are stored digitally – so you do not have to worry about anyone hacking into your account. It is among the safest investment, but still, investing in gold has risks. The safest way would be to fully inform yourself about them. If you are a non-US citizen, you might be more determined on doing this research.

Makes for a Diverse Portfolio

Many economists believe that gold is highly effective when creating a more diverse portfolio. When compared to other major asset classes, it has little to no correlation. However, generally speaking, gold has no statistically relevant correlation with most classes of assets.

There is a concern that an inverse correlation may occur between gold and equity when the equity is under stress. However, the price of gold itself is not significantly influenced. For decent returns to your portfolio, you may reduce the risk of volatility by adding more gold to it.

Provides Liquidity

If need asks for it, you may liquidate gold investments much faster than you would any physical real estate. Most assets generally have a lock-in period – but not gold. The only exception for this might be sovereign gold bonds – but otherwise, it should not pose a problem.

However, when physical gold is involved, the redemption amount will depend on the gold’s purity. Other factors such as market price or denomination might also be crucial.

When paper gold is the one involved, the redemption amount will be determined by the market price when the redemption date was established. Last but not least, if you are very short on money, you can also use the gold as collateral for taking out a loan.

RBI Ban on Loans for Gold

To the shock of every gold-lover in India, the Reserve Bank of India (RBI) has issued a total ban that prohibited banks from giving loans to purchase gold – regardless of its form. This includes primary gold, gold coins, gold jewellery, and so on.

This was announced in October 2012, and the RBI proceeded to make the announcement of the policy – that the policy had been met. There were, however, a few modifications to this policy: the bank was allowed to give out a loan, as long as it was intended as a “working capital for creating jewels”.

As a result, banks were allowed to give you a loan if you had a business involving gold jewellery – but would not give you the time of day if you simply wanted to buy a gorgeous necklace for yourself.

So why did this ban come to be? Well, in the years prior to this ban, there had been a massive rise in the gold import into India. As a result, the balance was disturbed – to the point that there was probably more gold in India than there was money. This obviously raised some flags of concern in the Indian bank.

However, people still manage to find a way around this. The law concerns banks, not private lenders. A person looking for a loan for purchase of gold jewellery might contact one of these lenders – and will not have to wait and hope that maybe the bank will give them the money to fund their own wedding. You know the saying in India: no gold, no wedding.

What Is a Private Loan

A private loan is an amount of money that you borrow from a credit union, a bank, or an online lender. This money will have to be paid in fixed installments every month – generally over two to five years, depending on the sum that you borrowed.

A personal loan is your best option when you have a high-expense event coming up. You may have a wedding, or you may have a home improvement project on your mind; in this case, a personal loan may save you quite a lot of problems.

This money can practically be used for any reason. The personal loan rates are generally significantly cheaper compared to a business loan or other payday loans. This makes them a great choice for those who are actually tight on a budget. Granted, if you live in India, you might have a few limits on what you can buy – but private online lenders are generally more flexible.

How to Get a Loan for Purchase of Gold Jewellery with Stilt

So, you’ve decided that you need a loan to purchase your wedding gold. If there’s no gold, there won’t be a wedding – and you want to get married as soon as possible, right? How can you do that? With Stilt, of course, by using these three steps:

1. Apply: If you are a non-US citizen, it is easy for you to apply for a loan with Stilt. All you have to do is fill out the simple online application to get started.
2. Get Approved: For eligible applicants, a decision will be sent via email within 24 hours. If the loan has been approved, the money should reach your account about 48 hours after approval.
3. Start Repayment: Once you’ve received the loan – now it’s your turn to hold up to your end of the bargain. Start making payments one month after disbursal.

It’s that simple! Getting your hands on some money for your jewellery is just a three-step process.

Conclusion

If you want to buy many pieces of jewellery – and not just a necklace you liked in a store – then a loan for purchase of gold jewellery should be your first choice. It’s the fastest way to buy those pieces if you haven’t saved up any funds beforehand.

Frank Gogol

I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.

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