I remember when my wife and I were looking for a house to rent in the late eighties, the only parameter we were firm about was a reasonable circulation of fresh air and lots of sunshine. The size of the house did not matter, nor did the number of stairs we might need to climb. We were just married and all we did not want was to live in a house where everything was dark and damp and where there was no natural light to keep us happy.

It is obvious that we have always believed in a reasonable circulation in every possible way… so whenever there was an opportunity to learn a new skill, we were the first to hop on to the trend. We were among the early subscribers to the social media hype too. If this were the case, you might just be curious enough to ask, ‘What sort logic did you follow for financial health?’

Well, circulation has always been our mantra. So besides having an investment portfolio that had variation written all over it, we also did not want to hoard any valuables. Now that I have shared this little secret, let me also share with my readers the value of ODs or Overdraft loan facility that some banks give.

I’ve always believed that when you buy technological innovations, you’re not spending, but investing. I bought my first PC with a configuration that would make me laugh now in 2015, for a whopping 1.25 lakhs in the late nineties… but that purchase helped my son, my wife and me learn the essentials of computing and probably helped us launch ourselves confidently into the future where bit-n-bytes have now become mandatory. The same logic holds true for a car, two-wheeler, fridge, AC, microwave, laptop, tablet, smartphone, or even the furniture essentials around the house… and, therefore, it is better to opt for a future of profits than hold on to dead investments.

Gold, for instance, is an excellent route to this overdraft loan facility. A loan against Gold is something a lot of banks offer, but I realised soon enough that going for a Gold loan service provider offering a flexible interest rate to help us cope with volatile markets was an excellent thought to play with. One of the various service providers happens to be Muthoot, and their claim to fame is that you, as a consumer, can convert an inert investment lying in the lockers into a proactive liquid asset in a matter of minutes. Muthoot stresses on a quick loan disbursal, has a loan limit that stretches from Rs. 1500 to Rs. 1 crore, includes a pre-payment option-without any penalty, and lets you go on with minimal documentation. They also give the advantage of their in-house gold evaluation, and have strong rooms for providing safe custody for gold ornaments.

Quite obviously, as this loan against gold is a securities-backed loan, the interest rate will be lower as compared to unsecured loans. Thus a gold loan is preferable compared to a personal loan for an emergency funding. So if your loan payment time-frame is from 12 to 18 months, a gold loan is surely an excellent option. The Muthoot website also states that ‘being India’s largest gold loan service provider, safeguarding the deposits of gold ornaments is our primary concern. A flexible interest rate policy is what helps us cope with volatile markets. Our gold loan range starts from Rs. 1,500 and stretches up to Rs. 1 Crore. Serving over 80,000 customers daily, we assist almost every section of the society in obtaining quick cash for leveraging their dreams.’

For SMEs this is money that can be used to double their profits and so cash in an overdraft situation is a boon for them. As I have pointed elsewhere in the post, it isn’t just businesses but even individuals who can opt for them because profit isn’t always a multiplication of money but also skills. These ODs or overdrafts are indeed a benefit for the consumer, though one really needs to understand the loan period and the loan amount in full view of your own loan-paying abilities.

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Keeping Fiscal Vents Open... a sponsored post on Muthoot OverDraft Loan Facility

Keeping Fiscal Vents Open… a sponsored post on Muthoot OverDraft Loan Facility

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Arvind Passey
Post written on 09 February 2015… published on my blog on 25 March 2015