Mother's Day: Know These 5 Expert Tips To Leverage Gold Loans

By George Alexander Muthoot

Mother’s Day is a cherished occasion when we come together to celebrate the incredible women who have shaped our lives with their unconditional love, sacrifice, and unwavering support. It is a day to express our gratitude and appreciation for the remarkable mothers, grandmothers, and mother figures who have guided us through life’s ups and downs.

As we celebrate this special occasion, it’s also an ideal time to recognise how gold loans can empower mothers to achieve their financial goals and maintain long-term financial stability.

Gold has always been a great safe-haven asset and hedge against inflation. Even though gold is a finite resource, the demand for this priceless metal is significantly high. It has not only helped people in levelling up their social status but also created a cushion against adverse life situations.

Also Read: Expert Tips: Single Moms’ Guide To Smart Real Estate Investments

Some surveys have revealed that about 80% of households own a portion of yellow metal in some form or other in India. However, gold serves as more than an investment when sudden financial obligations arise.

Gold loans offer quick and hassle-free financing, enabling mothers to pursue their dreams and build a brighter future for themselves and their families. By pledging their gold ornaments as collateral, mothers can leverage gold loans to initiate a new beginning in their lives.

Here are five ways a mother can utilise the power of gold loans:

1. Finance An Existing Business or Start A New Business: Many mothers have entrepreneurial aspirations, and gold loans can be a valuable tool in turning those dreams into reality. Whether they want to expand an existing business or start a new venture, gold can be their best bet. Ensuring the benefits of rapid approval, disbursal, and immediate flow of cash, gold loans empower women entrepreneurs to fulfil their financing needs, fund business expansion, and turn innovative ideas into reality.

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The massive amount of gold loans availed during the pandemic is a testament to how gold loans have become a preferred option for those struggling to revive their income streams.

2. Higher Education and Studies– Investing in one’s education is a vital step towards personal and professional growth. As a mother, ensuring a bright future for her child is a top priority. However, following self-dreams should also be a priority for mothers. Whether it’s pursuing a degree, attending specialised courses, or obtaining certifications, gold loans provide the necessary funds to upgrade skills and open doors to better career opportunities.

However, the high cost of education in India presents financial challenges for many mid-income and low-income families. Additionally, applying for student or education loans can be burdensome due to eligibility criteria and documentation requirements. In this context, gold loans offer a secure and accessible financing option for mothers.

By utilising gold loans, mothers can ensure a brighter future for themselves and their children by investing in quality education and acquiring the necessary skills for success.

3. Renovating homes– Creating a comfortable and nurturing environment for the family is a cherished goal for many mothers. Building new houses or renovating an older house is an emotional investment, whether it’s remodelling the kitchen, adding an extra room, or upgrading the living space. But as exciting as it sounds, home renovation big or small can put a dent in your pocket.

To support these dreams, taking gold loans for home renovation offers a reliable and accessible option, allowing anyone to secure the desired loan amount regardless of their CIBIL scores, with minimal documentation.

Several financial institutions and NBFCs enable mothers to bring their dream homes to life by offering gold loans for home improvement wherein they just have to pledge their gold ornaments as collateral against the loan. This can be retrieved easily after clearing the payments with low-interest rates.

4. Plan Memorable Travel and Leisure Experiences – As the economy has reopened and travel has become an enticing option again, mothers can use gold loans to fulfil their wanderlust and create lasting memories with their families. Whether it’s exploring exotic destinations, immersing in different cultures, or simply enjoying quality time with family.

Easy and hassle-free gold loans can provide the flexibility and financial support needed to make unforgettable travel experiences a reality instead of getting strapped into credit card debts.

Through gold loans, mothers can easily cover all their travel expenses including travel tickets, accommodation, hotel bookings, and other expenses.

5. Manage Financial Emergencies: Life is full of unexpected twists and turns, and mothers need to be prepared for any financial challenges that may arise.

Gold loans can act as a financial safety net during emergencies, providing quick access to funds without the need to liquidate other assets. Be it unexpected medical expenses, unforeseen bills, or managing temporary setbacks, gold loans offer a secure solution to navigate through difficult times with confidence.

Gold Loan has emerged as an attractive offer due to its lower credit eligibility, high liquidity, and easy availability during exigencies. This Mother’s Day, let us recognise the empowerment that gold loans bring and celebrate the incredible strength and resilience of mothers who utilise this financial resource to forge new paths, overcome challenges, and create a life of abundance and fulfilment.

-The author is MD, Muthoot Finance. Views expressed are personal.