Paying for higher education can put tremendous financial strain on families. With rising tuition fees and additional expenses for accommodation, books, supplies, etc., the costs can quickly add up. Many parents start saving early for their child’s education through investments, fixed deposits, etc. But sometimes, these savings are not enough to cover the entire cost. Emergency expenses like sudden illness, job loss, etc., can also deplete these funds. Additionally, many families may not have planned sufficiently early for their child's education. When faced with sudden necessity, availing gold loans for urgent educational expenses can be a quick and convenient solution.
Why Opt for Gold Loans for Urgent Educational Expenses
Gold loans for urgent educational expenses allow you to leverage the value of your gold jewellery and get funds in just a few hours or days. Some key advantages of quick gold loans are:
- Quick Approval: Loan providers can approve loans in just 1-2 days and disburse funds quickly. This enables you to pay pending college/university fees on time.
- Lower Interest Rates: Compared to other loan products like emergency education loans, interest rates on gold loans are very reasonable, typically starting as low as 9%. This keeps repayment costs in check.
- Higher Loan Amounts: You can avail substantial loan amounts against your gold jewellery. Many lending companies offer up to 75% of the pledged gold value.
- Flexible Tenures: You can choose to repay over a tenure of as little as a few months to a few years. Longer tenures result in lower Equated Monthly Instalment (EMI) costs.
- Retain Gold Ownership: The gold ornaments remain in your ownership during the loan tenure.
- Foreclosure Options: Many financial institutions allow part-prepayments and early foreclosures without penal charges, providing flexibility in repayment.
- Minimal Documentation: Only basic Know Your Customer (KYC) documents are required. Time-consuming paperwork and collateral are not needed.
Meeting Payments for College Admission
The admission process at reputed colleges and universities can be highly competitive. Once accepted, students are given a short window to make advance payments, such as admission fees, deposits, etc., to confirm their seats. Delays in payments can result in losing your spot.
By opting for quick gold loans for urgent educational expenses, you can get funds in a matter of days to cover these upfront admission costs. The quick loan disbursal ensures your child does not lose their hard-earned seat at the college.
Paying Pending College Fees
At times, families may encounter circumstances where they are unable to pay the ongoing semester or annual academic fees on time. Sudden medical emergencies, unexpected job loss in the family, etc., could result in funds allocated for education being used up. Some reasons for being unable to pay pending college fees include:
- Loss of family income due to layoffs or pay cuts
- Medical treatment expenses arising suddenly
- Commitments like weddings or home repairs depleting savings
- Poor returns or losses on prior investments made for education corpus
If college fees are not paid on time, students may be barred from attending classes, exams, etc. By taking a gold loan, families can immediately pay the pending fees and avoid disruption to their child’s education. The gold ornaments can be recovered later when funds are available.
Paying Fees for Higher Studies Abroad
Studying abroad at renowned global universities provides exposure and opportunities that enhance career prospects. However, the expenses involved are significantly higher compared to local colleges. Application fees, tuition fees, hostel/accommodation, air travel, insurance, etc. contribute to the high cost.
On average, studying abroad costs ₹15-25 lakhs annually. Although families start saving much in advance, unforeseen circumstances could deplete the funds and leave you falling short of the required amount. Taking a gold loan from lending companies specialising in educational loans can help bridge this gap.
How to Apply for a Gold Loan?
The availability of various lenders makes the application process quick and convenient. Follow these steps:
Step 1: Estimate the gold loan amount you need and gather the following documents:
- Photo ID and address proof
- Gold ornaments or jewellery of specified purity and quantity
- Proof of ownership of gold jewellery
- Bank account details
- Income proof
- Passport-sized photographs
Step 2: Apply for a gold loan online. You can visit the loan provider’s official website and look for the ‘Gold Loans’ section. Once you click on the ‘Apply’ button, you will be redirected to the application page, where you will be asked to provide the basic details like your name, address, PAN details, income details, and other KYC norms.
Step 3: Visit the nearest branch office of the lending institution with your gold. Meet the relationship manager and submit your documents.
Step 4: The gold articles are evaluated to determine their market value and the loan amount you are eligible for.
Step 5: Once the loan amount is approved, complete the documentation formalities. The loan agreement will specify the applicable interest rate, tenure, repayment schedule, etc.
Step 6: The branch will transfer the approved loan amount to your bank account within a few hours or in 1-2 working days.
Conclusion
Gold loans for urgent educational expenses offer financial assistance to deserving students and help families in providing the best possible education for their children. By pledging your idle gold jewellery, you can pay for higher education without any major disruptions. Responsible repayment will also result in establishing a good credit record.
