Gold Loan Tips: Do not ignore these 4 points while taking a gold loan..
Gold is called a companion in difficult times. When you need money very much, then you can arrange money by taking a loan against the gold kept in your house. This is the reason why earlier people used to collect a lot of gold at home. Gold loan comes under the category of secured loans and is cheaper than personal loans. But if you are going to take gold, then keep some things in mind well, otherwise you can get into bad trouble.
For what purposes are you taking a gold loan
For what purpose are you taking a gold loan, you should first think about it. Gold is your property, so decide to take a loan against gold only in very important situations. If someone in the family has a serious illness and money has to be arranged for treatment, then you can take a gold loan. If there is a shortage of money for a family wedding and you have to borrow from somewhere, then you can take a gold loan and later you can get your gold back by repaying the loan. Overall, take a gold loan only when it is very necessary.
Where to take gold loan
Banks and non-banking finance companies (NBFCs) also give gold loans. Banks offer gold loans at a low interest rate, while NBFCs charge higher interest. But the main business is to give loans against gold, so your loan gets approved quickly there and the loan amount can also be higher. Therefore, before taking a loan, find out the interest rates of banks and NBFCs and decide where to take a gold loan from only after thinking about all the things. If there is a slight mistake in this matter, then you may have to pay a lot of interest.
Consider this before taking a loan.
One more thing is worth paying attention to in the case of a gold loan, that is, if you are not able to repay the gold loan within the stipulated time, then the loan-giving institution has the right to sell your pledged gold. Usually, banks provide gold loans for 3 months to 3 years. The tenure of gold loans in NBFCs can also be different. In such a situation, before taking a loan, you have to decide for how long you will take the loan and how much time you can return that loan. If you do not repay the loan on time, you may lose your gold.
In this situation, the lender can ask for additional gold.
The financial institution would have given you a loan based on the market price of gold on which you have taken a loan by mortgaging the gold. After taking the loan, if the price of gold decreases in between, then in such a situation the lender can also ask you to mortgage additional gold. Please note that the age for taking a gold loan should be between 18 years to 75 years. Apart from this, processing fees are also charged in gold loans like other common loans, which vary according to banks and NBFCs.
Also, know the benefits of gold loans.
Gold loans are cheaper than unsecured loans like personal loans, property loans, and corporate loans. The criteria for a gold loan are quite easy compared to all other loans. Credit score etc. do not matter much in this because the loan amount is given to you according to the value of your gold. In times of emergency, you need money immediately, in such a situation gold loan is helpful for you because it is available even on short notice. In the case of a gold loan, flexible repayment options are given to the borrower to repay the loan.
