Things To Consider Before Getting The Gold Loan
For ages, it has been considered that gold has become a savior for every person. most people invest in gold so that they can meet any uncertain financial needs in the future. India is a place where people own a good amount of jewelry that can be used for getting a loan against it.
Recently it is seen that gold loan has become quite popular among the people. The best part is that the gold loan has quick processing that no other type of loan provides. You can easily get to know about the gold loan per gram rate and accordingly take the gold loan. Although getting a gold loan is having many benefits, all these benefits can only be taken if the gold loan is taken properly. Here are some things that need to be considered while getting a gold loan.
- Gold value and loan amount: The loan amount is sanctioned depending upon the value of the gold. Firstly, the lenders get the valuation done for the gold and also check its purity. A minimum of 18 karats of gold is eligible for getting the loan. Different lenders have different policies for lending money against gold. The minimum of the funds raised from the gold loan is 60% of the actual gold value.
- To evaluate the repayment options: It is very important to check the flexibility of the repayment of the gold loan. The lender might be surely provided with different types of repayment options. Your convenience gets the best repayment option.
- Choose a credible lending institution: IT is very important to choose a credible and reliable lending institute. It is better not to get a loan from unregulated lenders. This might can trap you in the fraudulent and unfavorable terms and conditions regarding gold loans. Always go for the trustworthy lenders that have certain strict rules regarding gold loans and they all stick to them.
- Processing fees: Different lenders have different policies when it comes to processing fees. Mostly the processing fees might be between 0-2% of the loan amount. Many of the lenders avail of the 0% processing fees. You can easily go for them and reduce the expenses regarding raising a gold loan.
- Loan tenure: IT is very important to consider the gold loan tenure. Most of the gold loans are short-term. The repayment terms might be between 7 days to 3 years. According to the convenience of repaying, the person can select the tenure of the gold loan.
- Loan disbursal time: Mostly the gold loans have minimum documentation and it involves very less time for getting sanctioned. Still, it will be better to go for the lender that has a very smooth process when the talk comes about loan disbursal time.
Also Read: Gold Loan Interest Calculator – Know How To Use
These are some important factors that can play a very important role in getting a gold loan. Do check the gold loan interest before getting it. You can only get all the benefits of the gold loan if you get the loan from the trustworthy lenders in the market.
Pranab Bhandari is an Editor of the Financial Blog “Financebuzz”. Apart from writing informative financial articles for his blog, he is a regular contributor to many national and international publications namely Tweak Your Biz, Growth Rocks ETC.
