All You Need To Know About Gold Loans

When it comes to surety and stability, gold is a valuable asset, so why not make it work for you? Gold Loans offer seamless disbursements with minimal documentation. There is no time limit on when you can take out a Loan against Gold. Your monthly outgoings will be kept within your budget with our flexible tenure and repayment options. The majority of Indians have gold jewellery at home or in their bank lockers. As long as India can remember, gold has been regarded as an investment. In addition to buying it for festivals, birthdays, and other special occasions, giving it as a gift is associated with weddings, births, and other special occasions. Despite economic policies or geopolitical events that cause highs and lows in gold prices, gold retains its value over time. Most Indian families still find it attractive and lustrous. Consequently, it is assumed that every household will have gold that they can rely on during difficult times.

If you need to raise money for a home or for your child’s higher education, or if you need to cover an emergency medical expenditure, gold is always a safe investment. When times like these arise, people apply for gold loans.

The process of applying for a gold loan may appear simple and straightforward at first. The simplest way to secure a handsome sum of money by pledging your gold is to go to a reputable gold lender’s showroom and pledge your gold. Before applying for a gold loan, did you know you need to keep certain things in mind? In addition to maximizing the value of your gold, knowing this in advance will help ensure that it is protected so that you may repay the gold loan and obtain your gold back.

Different repayment options are available with gold loans, including:

Regular monthly payments are called Equated Monthly Instalments (EMIs)

Loans that are paid in bullets, in which the interest component is deducted upfront from the loan amount. In addition to the loan amount, this must be repaid at the end of the term. Make sure to compare interest rates for the best deals. For instance, hdfc bank gold loan interest rate is quite competitive in the market.

A loan with an interest-component now and a principal component later is defined as ‘interest now, principal later,’ in which the interest component is paid first as an EMI during the loan tenure, while the principal component of the loan is paid at the end. At the moment, this service is only available from NBFCs.

The following points should be kept in mind when taking out a gold loan:

  • There are a variety of repayment periods available, ranging from one year to 24 months
  • It is possible to insure your gold so that you will still receive compensation in case of theft. It is also possible to get gold insurance from lenders.
  • There is usually a nominal processing fee that is charged by some lenders, which can be as high as 1% of the gold value or loan amount even in the case of gold loan apply online.
  • In some cases, the lender has an in-house valuator who waives the valuation charge
  • Lenders charge different interest rates, but they can range from 12% to 16%
  • A gold loan can be applied for by anyone over 18 years old
  • There are only two types of Know Your Customer documents to be submitted

If you have the resources, you can take a gold loan which may be the fastest and easiest loan you have ever taken. With the help of the tips above, you can be sure that you are making the best decision when you take out your gold loan, and you’ll be able to get the maximum loan amount while ensuring the safety and security of your gold.

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