Everything You Need To Know About Gold Loan

Gold has been there for ages. The yellow metal enjoys tremendous religious, cultural, and historical values in the nation. Gold is one of the most tangible assets and one of the best metals for investments. Gold is also offered as a gift on many auspicious occasions and is considered as one of the most valuable gifts one could offer. When it comes to financial aid, gold loans are considered to be one of the most secured loans with the best prices offered in the market. They are by far one of the cheapest loans available today. Gold loans are offered by many players in the market and serve the same purpose as personal loans. It is one of the reasons why people prefer gold loans over personal loans.

Gold does not only get cherished as an ornament. But it is also a form of savings cum investment. It also serves as a universal currency traded or sold almost everywhere.

Gold needs very little storage space and minimum upkeep. It gets carried with ease. Nevertheless, people buy gold for its long-term value and appeal. Gold is the perfect asset for wealth reserve, which gets carried from one generation to another. Further, gold can be easily converted to cash through a gold loan. It gets used as collateral against loans.

Gold is one of the most commonly used liquid assets that form a hedge in inflation. Further, it is a contingency fund used in times of emergencies. Gold has religious connotations and family inheritance values. A time comes when you find yourself caught off-guard and need to borrow cash. The solution to an emergency can’t be a personal loan, and you can’t leave your heirloom on the verge of risk.

Is there any alternative to get rid of financial insecurity? Indeed, you can go for a gold loan if you need instant cash. Do you have gold assets lying idle in your locker? Emergencies are when you need to monetize your gold assets.

Tenure of gold loan

Gold loans get sanctioned by Rupeek for a short span. The loan tenure may start from 3-4 months. This is advisable to take a gold loan only when you can repay the amount on time.

Do a background check of the lender.

Avail of gold loans from banks, NBFCs, or gold dealers. No doubt banks are a credible source. But you need to do a background check for the other two leasing options. Jewelers offer a lower interest rate than banks, but you should be able to rely on its authenticity. Be wary of lesser-known NBFCs and gold jewelers. You can make a better idea of EMI, principle, and other crucial amounts by using the gold loan EMI calculator.

The interest rate on the gold loan is lower than other types of loans. Loan rates will vary from one financial institution to another. The interest rate on the gold loan may vary from 5% to 2% based on your lender. Rupeek.com offers gold loans at a nominal interest rate.

Loan amount

It is impossible to get a 100% loan amount against pledged gold. The loan amount varies from 60% to 90%. Gold loan EMI calculator will give you the exact amount, after getting the eligibility amount, you can make a better decision to apply for the gold loan online. This will help you to fulfill any kind of requirement for education, business, agriculture, or any other kind of need either emergency or personal. The gold loan has become a new method to fulfill any dream in this century.

Repayment Process

As per the norms followed by the process in a gold loan, a borrower is liable to pay regular EMIs against the raised loan. Once the time period is over and all the dues are cleared, the gold deposited as security is returned back to the borrower. As there are several repayment structures available you can choose as per your requirement. You should go for a gold loan when you know you will pay it back on time.

What if repay amount is not been paid

It is vital to know the repayment capacity before taking a gold loan. In case of default in payment, a lender can auction the deposited gold to recover the amount.

What charges or fees are involved?

There can be some hidden charges involved when you apply for a gold loan. Hence, it is necessary to go through all the charges or fees involved. Some of the additional fees or charges include valuation fees, repayment charges, and processing fees.