There are times when there is a need for urgent funds. Reasons could be to give your home a small renovation or repay some debts off or pay off medical bills etc. It is during times like these that the extra gold laying in your locker can be the perfect means to cater to your financial requirements. The surplus gold in your locker can be used as collateral to get a gold loan. Gold loans are secured loans with an affordable rate of interest. It is an easy way to get instant cash without any hassle. It is quick and involves very little paperwork. There are a lot of other amazing features of gold loans that we are going to discuss later in this article. Gold loan interest calculators are available online to provide you with the precise figure of gold loan interest that you have to pay at the end of the gold loan tenure. This will help you compare and assess different interest rate schemes offered by multiple lenders letting you pick the gold loan scheme that best suits your needs.
Features of gold loan
There are a lot of interesting features when it comes to gold loans. Some of them have been discussed below.
Unlike personal loans, gold loans are secured loans. Secured loans are the one in which the applicant has to pledge some of his owned property as collateral for security. In case the individual fails to repay the loan, even within the grace period, the lender has the right to auction the individual’s collateral to get his sum back. Since the gold loans ask for pledging gold as collateral the lender is more than happy to approve the loan. Since the gold loan is secured, it requires less documentation and hence faster verification.
Avail of gold loans irrespective of your credit score
The credit information bureau India ltd., also known as CIBIL in short, is responsible for assigning credit scores to an individual. CIBIL score is a three-digit score, ranging from 300-900, given to an individual based on his or her last 6 months of financial data. An individual with a good CIBIL score is considered to have financial stability in life and hence are preferred by the loan lender. Personal loans and some other types of loans are pretty strict with the applicant’s CIBIL score and hence are only sanctioned to the one with a good CIBIL score. Gold loan, on the other hand, are sanctioned, even for applicants with a poor CIBIL score since gold is already taken as collateral against the loan for security.
Gold loans require very little paperwork. Since gold loans are secured loans it does not ask for the individual’s income proof or income tax return statements. The only requirements are some basic proofs of identities. This makes the verification process a lot easier and a lot faster than all other kinds of loans, making it the perfect option to go for when in urgent need of cash.
Also Read: Pro Tips to Get Gold loan Easily In India
Affordable interest rates
Gold loans come with an affordable rate of interest starting from 9.7% which is much lower as compared to personal loans and others. Different lenders offer a varied scale of the rate of interest. A little bit of research on the lenders that are offering the lowest rate of interest can help you save some bucks. The rate of interest on gold loans can easily be calculated using a gold loan interest calculator. Let us look at how to use a gold loan interest rate calculator.
Using a gold loan interest calculator
Calculating gold loan interests and equated monthly installments can be quite tricky. But do not worry since that is where interest rate calculator swoops in to make your job a lot simpler and easier. The gold loan interest rate calculator program is uploaded on multiple sites of gold loan lenders and hence can easily be found online. The user simply has to put the right inputs into the calculator to get the exact figure of interest that he or she is supposed to pay according to the terms and conditions of the particular gold loan scheme. Gold loan interest calculator comes with three fields that the user is supposed to fill which include the loan amount, rate of interest, and loan tenure. Follow these few simple steps while using a gold loan interest calculator.
- Compare the rate of interest offered by various lenders.
- Select the gold loan scheme with the lowest interest rate.
- Select the gold loan amount and gold loan tenure according to your suitability.
- Fill the three fields in the gold loan interest rate calculator and press on calculate.
This will give you an exact figure of the interest that you have to pay. It will also evaluate the exact amount of equated monthly installments that you have to pay. This will help you to get a vivid idea of whether or not it will be feasible for you to repay the loan adhering to the terms and conditions of it.