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If you have enough gold jewelry or other gold properties, gold loans are a viable choice for acquiring funds. Gold loans getting from a bank like Capital Small Finance Bank Gold Loan are secured loans that are granted against the issuer's gold jewelry as collateral. Loans against credit cards are another choice for fast, hassle-free loan. These are not the same as using a credit card. Credit card loans are cash loans rather than credit card balance rises.

What is the difference between a credit card borrowing/loan and a personal loan?

Consider a loan secured by a credit card to be a personal loan. It's an unsecured loan, which means there's no need for collateral, and it's for a certain amount of time with a fixed interest rate.

The following are the most common characteristics of a personal loan taken out on a credit card: 

1) Credit Card Owner – To get a personal loan on a credit card, the borrower must have a credit card. This loan is usually available to both old and new credit cardholders.

2) Credit Score – Since these are unsecured loans, the borrower's credit history and score are crucial in determining loan approval. If you have a history of defaults or late payments, it will affect whether or not you are approved for a loan, as well as the interest rate you are offered.

3) Amount – The amount of a credit card loan is normally limited to your card's credit cap. Depending on other factors such as your credit history or income levels, some banks can give higher loan amounts. The sum is much higher than the credit card cash withdrawal cap.

4) Interest Rates – As opposed to the interest paid on a credit card swipe, the interest rate on a personal loan on a credit card is usually much smaller, beginning at about 12% per year.

Gold loans are secured loans backed by gold reserves that have been pledged as collateral Credit card loans are unsecured personal loans that do not need any collateral.

5) Loan Amount - Because of its benefits and simplicity, this form of loan is very common. Credit card loans are readily available online, making them a convenient choice for many borrowers.

Differences Between Gold Loans and the Loan Against Credit Cards.

Although both gold loans and credit card loans are useful borrowing options in emergencies due to their fast disbursal times, the simple application process, and versatility, there are some significant differences between the two. Here are some things to think about before applying for a loan.

Features of gold loan and Personal loan on credit card-

1) Collateral

The loan sum is generally a percentage of the market value of the gold assets pledged, and it is typically very large Although some banks can give a higher rate, the loan amount is typically below the credit card cap.

2) Interest Rates

Since gold loans are secured loans, interest rates are generally low, starting at 10.68 percent on average, making them a viable option. Since these loans are not secured by an asset, they normally have a high-interest rate, beginning at 12 percent per year.

3) Tenure

Usually, gold loans are not available for more than three years and twelve months. Credit card personal loans are normally available for 24 months, but some banks can provide longer terms.

4) Other requirements

There are no other conditions besides gold collateral and KYC papers. Credit card personal loans are normally available for 24 months, but some banks can provide longer terms.

CONCLUSION-

Gold loans are the best choice to choose because they provide more incentives than a credit card loan. While both forms of credit make borrowing simple, quick, and convenient, gold loans are available to anyone who owns gold, regardless of their employment status, income level, or credit history. In contrast, gold loans have lower interest rates. Unlike online credit card loans, gold loans do not have cash withdrawal restrictions, which may be inconvenient. Gold Loans Apply Online is the best method for you because it will save your time.

Also read this: Go With The Gold Loan. Go The Indian Way. 

Method of obtaining Gold Loan - The process of applying for a gold loan is quite simple. The applicant must be of 18-70 years of age. The Gold loan can be acquired by anyone who suffices.

Gold loan eligibility and possesses more than 18 carats of gold. No occupation barrier is there for acquiring gold loans. No credit score for CIBIL score is required for this loan. However, one can improve his/her Credit score by this loan. This loan can be acquired for agricultural processes or travel purposes, wedding purposes or higher education, etc. There is no restriction on the utilization of the loan amount.

 Application process This procedure can be done in two modes—online and offline mode.

1. ONLINE MODE- the applicant can complete the procedure from HDFC bank's official website or app.
2. OFFLINE MODE- the applicant has to visit the bank for completing the application procedure.

The rest of the procedure is the same where the applicant has to visit the bank for document verification and gold's purity test. 

Documentation - There is a lot of paperwork and lengthy documents to be submitted for availing loans. This is not the same for Gold loans. Here only KYC documents are necessary. The verification is done for checking the applicant's background. Identity proof and Address proof, along with 2 passport-sized photographs, are mandatory. For identity proof, one can submit anyone from this- Aadhar card, Driving license, Voter Id, PAN card. For Address proof, one can submit anyone from this- Passport, Aadhar card, Ration card, utility bills, or rental agreement for renters. No other documents than this are not required. When applying for Agricultural purposes, one has to submit proof of agricultural land. 

Purity test of Gold -The gold which has to be kept as a mortgage has to be evaluated. The evaluation is done for checking the impurities present in the gold and its weight and composition. This is called Gold's purity test. Bank representatives conduct the purity test. 

Loan Approval - Once you have completed the application process, document verification, gold purity test, and met the eligibility criteria, your loan gets approved. After approval, a sanction letter is issued to the applicant. A sanction letter contains bank details, loan amount, interest rates, prepayment options, foreclosure charges, loan tenure, repayment options, gold rate per gram, etc. After depositing the Gold in the bank, it is safely kept in bank lockers. 

Safety of gold - When you deposit the gold in a bank, it is kept in lockers. The lockers are present inside the Bank's vault. The gold is kept in bags and marked by the application as no present in your sanction letter. The lockers are guarded and kept under surveillance. The lockers hold durability from external conditions. The lockers have specific keys for all the lockers. The keys own the bank representative. Nobody is allowed to enter the Locker room except bank representatives. 

Repayment The following three alternatives are open for refinancing your HDFC Gold Loan advance.

1. Standing Instruction (SI): If you have a current account with HDFC Bank, an amount indicated by you will be deducted towards the end of the month.
2. Electronic Clearing Service (ECS): This option is for those who don't have an account in HDFC bank; here, the amount indicated by you will be deducted from the account of other banks shown by you towards the end of the month.
3. Post-Dated Checks (PDC): The PDC can be submitted to your nearest branch of HDFC Bank towards month-end.

Benefits

1. The interest rates are only 9.90% per annum which is very less in comparison with other loans.
2. The processing fee charged is only 1.50% of the Principal Loan Amount.
3. No foreclosure charges after 3 months.
4. The loan can be approved up to Rs 1 Crore.
5. Loan tenure is between 3 to 24 months.
6. The gold loan can be obtained in just one visit.
    Also read this: Some Essential Features of a Gold Loan 

We all know education is a vital aspect of life and everyone should get the right to education. Education is the only thing that can fill the gap of poverty, the gap between a developed and underdeveloped nation etc. Education can imbibe a feeling of oneness and eliminate these stereotypes based on caste, religion, race etc. So, it is very important that each one of us should have the right and privilege of getting an education. But as we know that for availing education one needs to spend money and everyone cannot afford to spend huge amounts of money, so here’s what one can do, they can avail a gold loan for funding their education.

It is a well-known fact that education can be quite an expense in itself as nowadays colleges and schools have a lot of tuition fees, so how should one provide their children with good quality of education, it is simply that one can avail a gold loan for funding their child’s education. One might think of going for an availing education loan, but let me tell you that process can be very tedious and difficult involving a lot of conditions burdening the child and his family. But with a gold loan, this process can be made easier. 

Let us discuss some of the reasons why one should go for a gold loan-

1. It requires no stringent eligibility criteria: Unlike, most education and other loans, the bold loan does not require to follow strict eligibility criteria for availing it. For education loan, many academic criteria are also taken into account in some cases but with a gold loan, it is not the case.
2. No end-use restrictions: In the case of education loans, they do not necessarily cover the tuition fees and other academic-based expenses, especially in the case of students studying abroad, they only cover the extra charges, for example, airfare or travel fare, cost of living, lodging costs, other associated costs etc. but at the same time there are no such restrictions in case of gold loan, they can be utilised without end-use restrictions which add to the advantage.
3. No CIBIL score requirement: For availing an education loan, which the banks provide at a very high rate of interest, the borrower should have a good CIBIL score, and it is very difficult for students to provide a good credit score especially when they don’t have a previous history of borrowing. While, if we look at gold loans and compare the two, gold loans do not require any such CIBIL score for availing loan or fulfil any such criteria, which can be beneficial for students as they can improve their credit score by availing such loan.
4. Minimal documents required: While education loan requires many formalities to be taken care of and many documents to be presented, the gold loan comes in easy, simple and quick as they don’t require any extra documents and formalities to be done, they are very easy to get done with and if everything is correctly presented and taken care of, one can avail a gold loan within one day.

Several other benefits come along with availing of gold loans over education loans. But since they are easy to avail, that does not mean that casualties can be overlooked, one should still be very careful with all their documents, keep in mind the gold loan calculator and check for the Gold Loan Per Gram so that they can compare and then apply for the highest price they get.

When applying for a loan, one should go for the bank that provides the best price with a good interest rate so that you can avail the loan without stressing and Karur Vysya Bank Gold Loan is one such solution to your problems as they provide gold loan interest rate starting from 7% per annum and accept minimum 18 carats of gold. In addition, they provide 75% of the total value of gold to you and provide a flexible tenure. They have very less, transparent extra charges and also net invisible processing charges along with that they provide you with many attractive gold loan schemes.

Also read this: Gold loan for Home renovation 

Many Indians desire to own a Car for several necessary chores that are required to be completed throughout the day. This is why Car Loans have become popular in India as the demand for Cars has increased significantly. In India, Car Loans are offered by Banks and financial institutions with an interest rate of 7.25% per annum. The processing fees and other charges depend upon the bank or financial institution that the applicant has applied to. The loan tenure offered usually ranges anywhere between 1 and 8 years.

The Banks and Finacial institutions demand the use of the Car as collateral for the sanctioning of the Loan because then the car would act as a security that the lending institution would be entitled to take over in case the borrower of the loan is unable to pay back the lending organization. The process of Loan application for a Car Loan is pretty simple and does not require a lot of effort from the applicant. The vehicle to be bought itself acts as the security for the loan thus the borrower need not worry about losing an asset that he/she already owns. 

 Eligibility Criteria:

The Eligibility criteria that are required to be fulfilled for the application procedure of Car Loans include the following:

• The age of the applicant should be at least 18 years and below 75 years.
  
  
• The minimum net monthly income of the applicant should be INR 20,000.
  
  
• The applicant should be self-employed or be employed with the current employer for at least the past 1 year.
  
  
• The applicant should be salaried and working for a government or private institution or self-employed.

Some banks and financial institutions might have few additional eligibility criteria as per the policies of the Bank. You can contact the Bank via online and offline mode to know further details about the eligibility criteria for the application process. If you have a good credit history and CIBIL score, the chance of the Car Loan getting sanctioned by the Bank increases significantly. This is why having a high credit score can prove beneficial for you in the application procedure.

Documents Required:The Documents required for the application procedure for Car Loans include the following:

1. Proof of Identity of the applicant
   
   
2. Proof of Age of the applicant
   
   
3. Proof of Income of the applicant
   
   
4. Proof of residence of the applicant
   
   
5. Few Passport-sized photographs of the applicant

Several banks and financial institutions may demand few additional documents and paperwork for the application process. The verification of the Documents submitted by the applicant takes around 14 to 21 days by the lending Bank. You can check the status of our application through a visit to your nearest bank branch, by calling the customer care service of the Bank, or by visiting the website of the Bank you applied to.

You can use a car loan EMI calculator to estimate the monthly repayment amount you need to pay back to the bank during the tenure of the loan. The requirements of these Loans include the rate of interest chargeable, processing fees, loan tenure, and the Loan amount.

There are many popular Loan schemes available in India. Car Loan schemes that have gain popularity in the past few years include the following:

• State Bank of India Car Loan
  
  
• Axis Bank Car Loan
  
  
• Bank of Baroda Car Loan
  
  
• Kotak Mahindra Bank Car Loan
  
  
• ICICI car loan
  
  
• Bank of India Car Loan

You should perform thorough research before applying to Banks and financial institutions for Car loans. Compare the rate of interest, loan tenure offered and the processing fees being charged. Also, confirm the down payment amount that needs to be paid by you. In many cases, the Banks also offer to pay 100% of the cost of the Car. Check and analyze the prepayment policies of several banks and also keep in mind the time required for the complete application process.

Also read this: Improve Credit Score through Credit Card 

Nowadays, Cars are no longer a symbol of luxury but they have become a symbol of necessity. Many Indians do not just desire a Car but need it. This is why many banks and financial institutions offer Loan schemes for people wanting to buy a Car.

Car Loans have a rate of interest starting from 7.25% per annum in India. The processing fees for the Loan process depend upon the Bank you apply to. The Loan tenure for Car Loans generally ranges from 1 to 8 years. The applicant for a Car Loan should be below 75 years and above 18 years of age. The applicant should be a resident of India and have a net monthly income of INR 20,000. Banks demand few documents for verification before the sanction of a Car Loan.

There are many car loans available in India. The most popular ones include:

1. Bank of Baroda Car Loan
2. ICICI Bank Car Loan
3. HDFC Car Loan
4. Bank of India Car Loan
5. Kotak Mahindra Bank Car Loan
   
   

Car insurance is a very important aspect while purchasing a Car. The insurance policies opted by the borrower can help him/her cover certain damages that might happen in the future.

Given below are few advantages that Car insurance provides to the owner of the Car:

• According to certain Laws of India, Car insurance is mandatory for every car owner. This was first introduced by the vehicle act of 1988. If a person driving in India is caught without Car insurance by the concerned authority members, he/she would be obliged to pay the penalty for the same. You should always carry the car insurance policy papers along with you while driving your car.
  
  
• If by any chance, you are involved in a car accident where another vehicle, a pedestrian, or some else’s property is involved, the insurance provider would have to pay for your Healthcare bills and/or for the repair for the damage that has been caused to your Car. This can help you a lot in reducing your burden of bills in these difficult situations.
  
  
• There are several Car insurance policy options available for your help. One of them is Comprehensive Car insurance. With the help of comprehensive Car insurance, any third-party injuries/damages are covered by the insurance provider. The cost of damages, injuries, and repairs are also covered in case of natural calamities, fire, explosions, acts of terrorism, strikes, or if your car ever gets stolen. This makes the comprehensive loan policies one of the boast popular Car insurance policies in India.
  
  
• Many times, car accident survivors are faced with legal actions and procedures. Many car insurance schemes offer to cover the legal charges involved in these situations. This benefits the car accident survivor in covering all the legal fees required to be paid until the legal proceedings come to an end.
  
  
• Many insurances provide also offer the option of a personal accident cover. If not, the customers also have the option to ally for it as an add-on. If the policyholder by any chance dies during the Car accident, the policyholder’s family members would receive compensation from the insurance company. This can help the family members in ways unimaginable.

These were the reasons why it is advantageous to opt for a car insurance policy in India. 

You can use a Car Loan EMI Calculator available on several online portals to estimate the monthly repayment amount that you need to pay back to the Bank till the end of the loan tenure. The requirements for the use of these calculators include Loan Tenure, Loan amount, processing fees, rate of interest charged, This can help the people interested in Car Loans to budget out their monthly expenses properly.

Some popular car insurance offered by insurance firms in India are:

• Digital Car insurance
• Bajaj Allianz Car insuarance
• Bharti AXA Car insurance
• Kotak Mahindra Car insurance
• Liberty Car insurance
• State Bank of India Car insurance

Also read this: Benefits of availing credit card in this pandemic 

We will take a gander at a not many standards that should be followed to choose the least expensive just as the best proposals in the vehicle advance plan. Initially an individual should choose the new vehicle alongside the model just as brand and afterward pick a Car Loan Eligibility conspire that will give enough of this advance aggregate sum for you to get the job done. 

Albeit new vehicle credits don't follow through on for the total cost of this vehicle yet pay an extremely significant segment of this. In this way all the borrowers must have least investment funds to buy their fantasy new vehicle. Along these lines one should likewise choose a vehicle advance remembering this credit aggregate sum and furthermore the complete reimbursement capacity of the multitude of people.

All the salaried workers have a preferred position as they can be conceded exceptionally higher advance sums dependent on their yearly pay, with the monetary foundations supporting credit cash dependent on that aggregate sum. So, all the individual ought to do their own entire market overview to profit this best vehicle advance plan that offers them the most extreme quantum of this advance. There are additionally a couple of components like initial instalment sum just as credit edge that ought to be held getting looked at whatever point profiting of a vehicle advance.

In the event that all the people repay the credit in initial instalment, at that point the person essentially saves a ton of extremely additional pace of interest charges, which the borrower may need to pay in the event that he had picked the most ideal choice of all out EMI portion. As we realize that at whatever point profiting of vehicle credits the bank pays for the exceptionally significant segment of the buy sum, however the remainder of the edge, which is known as the vehicle advance edge is to be paid by all the actual borrowers. The vehicle advance edge varies from one bank to some other. Consequently, you ought to choose a foundation remembering this extremely initial instalment choice just as credit edge.

Each other part of this vehicle credit is the pace of interest charged on the complete chief sum. This pace of revenue for the most part runs between nine percent to fifteen percent among the presumed banks just as NBFCs. Further skimming financing costs ought to likewise function admirably for the borrowers, due to the entire market changes and rate decrease which could profit all the people at whatever point reimbursing in a drawn-out vehicle credit. Monetary organizations like banks, just as NBFCs, offer an extremely significant part of this vehicle advance which gauges around an exceptionally least.

The leftover edge is to be given by all the actual borrowers from their records. A portion of the banks consistently give a full level of value esteem, yet just on account of trade-in vehicle credits or the vehicle against advances. Likewise, reimbursement residencies enormously affect the borrower's reimbursement sum. On the off chance that all the people are going for a drawn-out credit, at that point he winds up paying more as he pays for more interest charges. 

PNB Car Loan interest rate calculator at whatever point then again on the off chance that all the people take up a transient residency, at that point he pays lesser premium charges, in this way setting aside their cash. Along these lines one ought to consistently pick a foundation that offers a truly adaptable reimbursement residency between one to seven years. 

At whatever point going to benefit of the vehicle advance one needs to pay some extra charges to profit the vehicle advance office, which incorporates all the preparing expenses, documentation expenses, prepayment charges, and some a greater amount of the things. A portion of the absolute best monetary foundations offering credits are the absolute best banks like PNB.

Also read this: Credit card Payment Options 

Car loans are of two types: secured car loans and unsecured car loans. A secured car loan is availed with the car as collateral and has a fixed interest rate for the entire loan term, whereas an unsecured car loan doesn’t require collateral and has both variable and fixed interest rates. An unsecured car loan is primarily for a low principal amount. A car loan is hassle-free and convenient to avail. The banks and financial institutes make sure that the loan is adaptable in every way. Before availing a loan, the individual should do enough research and have ample knowledge about banks and their offers.

1) The right lender: A loan is financial help, and practically it can be availed from anyone, starting from your next-door neighbor to everyone that comes along, but availing a loan from someone that doesn’t have a clear print on loan is risky and disadvantageous. That’s why to avail money, legitimate organizations like banks and financial institutes are present. Even among banks and NBFCs. The financier should be trustworthy and have numerous customers as they indicate their level of influence.  

2) Budgeting: You should consider your monthly income and spending level before going for a loan. The car loan still needs monthly payments, and you should make sure that you will be able to pay the interest on time without missing a single payment.

3) Car selection: Before standing in front of a financier, you should select the car you want and the money you can afford for that car.

4) Eligibility criteria: Every bank and NBFC has a certain criterion that the applicant must meet before availing of a car. The age requirement to avail of a car loan is between 18 years and 75 years, though most banks and financial institutes prefer the minimum age to be 21 years. The applicant should have a stable income or profit each month. The applicant should be a salaried individual or self-employed individual, or self-employed non-individual (co-applicants). The applicant must earn a minimum of Rs 3,00,000 per annum to be a borrower of the loan. The applicant should be working for a minimum of 2 years and at least one year with the current employer. The applicant should be able to fulfil all the above before applying.

5) Documentation: To prove that the applicant meets the eligibility criteria, he/she needs to submit documentation alleging those. The required documents are ID proof-PAN card, Aadhar card, Voter Id, driving license, passport (anyone is enough). 

a) Address proof: A government-authorized document verifying the applicant’s place of residence. It could be a PAN card, Aadhar card, Voter ID, driving license, passport (anyone is enough). 

b) Income proof: An official authorized document specifying the applicant’s salary. ITR, form 16, salary slips, or any other valid document mentioning the applicant’s income or profit.

6) Tenure: The loan term you are going to avail of the loan is tenure. Banks and NBFCs provide tenure for anywhere between 12 months and 72 months to avail of a car loan. But it is advisable to choose a shorter tenure as it reduces the interest amount on the whole.

7) Loan amount: Most banks and financial institutions provide loan amounts up to 90% of the car’s ex-showroom value, but few HDFC or SBI car loan provide up to 100% of the car’s ex-showroom price. Economists and financier advisers recommend at least 20% of the car’s value to be a down payment, an amount that isn’t from the loan’s principal.

8) Interest rate: Equated Monthly Installments(EMI) is the applicant’s monthly interest amount instalment to pay each month until the end of tenure. Depending on the loan amount you avail, the interest rate varies. The Car Loan emi Calculator can be used to know the monthly instalment you’ll have to pay for the loan amount you take.

9) Car booking: If all the above suits you well and good, you can go to the dealer, recommend a car quotation, and take it to the lender to avail the money.  

Also read this: Explaining Car Loan 

Life is about large numbers of the erratic circumstances which occur and as an individual up-and comer, you should all have a solid character and more mental fortitude to survive and confront any sort of situation and move beyond it without expecting that. In any case, to execute this solid nature into any sort of condition one ought to be in a situation to have some sort of hanging on anything ideal for any such conditions and can help them face it.

Presently, we as a whole know, monetary improvement isn't something somebody can anticipate consistently or can likewise never know whether it will rise or fall. So, for any such conditions or when you experience such circumstances, you ought to consistently have something close by to utilize and tackle any sort of circumstance identifying with monetary crises. One such arrangement that can be useful and valuable consistently is only a gold advance. Gold credit is one such advance that is the most secure constantly sort of advance one can consider in any sort of crisis they would confront. Gold credits are consistently accessible at a portion of the truly sensible just as a lower gold advance loan fee.

Presently, what precisely are these desperate requirements?

Indeed, desperate requirements are basically only any sort of situation in which one feeling of trepidation or stresses the most. Also, we can't say when one may have such a circumstance to look at throughout everyday life. So even in these kinds of desperate necessities, one can depend upon the gold credit as a factor of help and administration. 

How might gold advance assistance in critical conditions? 

Gold credits are the most solid sort of advances and the significance lies in the way that these can be placed into utilization for any sort of situation and they are no place confined to just specific kinds of utilization. So, an advance with no such sort of limitations is the one that will consistently help competitors regardless of how hard the circumstance is to confront. Presently speaking particularly about monetary ruin sort of a situation, everybody needs the cash as quickly as time permits to recuperate from that sort of crisis, and in the present condition, the gold advance can be a day-today existence saving choice. This is on the grounds that all they need to have is an adequate measure of gold which they can present to the credit loaning foundations and they have gold advances promptly accessible in their grasp. That costs which the bank offers as a trade-off can be utilized to beat any monetary destruction and have a specific time of security to oppose further. 

In contrast to not many different kinds of credits, as we have effectively referenced the gold advance has the most reduced revenue charges which the financial organizations offer, for instance, the HDB gold loan is viewed as truly outstanding just as less in examination with that of the individual advances or the property sort of advances. An up-and-comer can likewise appreciate the enormous scope of credit sums being introduced dependent on the value and immaculateness of the gold that has been conceded. 

Aside from simply a monetary desperation, we can comprehensively characterize gold credits to be utilized during the clinical sort of a crisis, for training purposes, and advances for a wedding additionally going under the kind of gold advances. The gold credit can likewise be additionally used to cover doctor's visit expenses, activity expenses, and medical procedure costs. Just by focusing on this point, we can most likely get sufficient data on how well the gold advance can be put for each little use. Now you have the option of gold loan apply online system also. 

Henceforth we, therefore, close by saying that no doubt gold is the most and should go for a decision in the hour of desperate necessities with no sort of qualms!

Also read this: Gold Loans and NBFCs! 

Each bank and the financial institution offers different schemes for car loans. 

The borrower has to consider several factors while obtaining a car loan -

Deciding the car : 

The first factor to consider while applying for a car loan is to extensively research cars and their models. Costs such as maintenance, insurance, fuel, etc., should also be considered. The borrower should also decide whether they want to purchase a new car or a used car. Finally, the borrower should finalise depending upon a car based on their budget and capacity to repay the loan amount without defaulting.

Credit score :

The borrower should consider their credit score before applying for a car loan. The borrower’s credit score determines their eligibility and the interest rate of the car loan. A minimum credit score of 750 is considered beneficial for the borrower.

Interest rate :

The borrower should consider the interest rate charged by the bank or the financial institution. A low interest rate is advantageous for the borrower. This is because it directly affects the equated monthly instalments to be paid by them; the lower the interest rate, the lower the EMI. Hence, they would save more money with a low interest rate.

Repayment capacity :

The borrower should consider their repayment capacity before availing of a loan. In addition, they should consider their existing debts, if any. Finally, they should use the car loan EMI calculator available on the bank’s website to calculate the EMI they would have to pay on availing of a car loan. Then, the borrowers should calculate different combinations of loan amount and loan tenure to figure out the one that fits their requirements.

Tenure :

Based on their repayment capacity, the borrower should consider the loan tenure, whether short-term or long-term. In a short-term car loan, the monthly instalments are bigger, but the interest rate charged would be less, and they would get rid of the debt faster. In a long-term car loan, the monthly instalments would be smaller, but the interest rate charged would be higher, and it would take more time to get rid of the loan. The borrower should decide on the tenure based on their repayment ability and financial requirement.

Prepayment and foreclosure charges :

The borrower should consider the prepayment and foreclosure charges on the car loan. Prepayment allows the borrower to pay off the loan amount before the tenure end and save up on interest; however, banks charge a fee on prepayment and foreclosure. The penalty rate differs in every bank, so the borrower should decide accordingly.

Loan to ratio value :

The borrower should consider the loan to ratio value on the car loan offered by the lender. Many lenders offer a loan to ratio value of upto 100% on both new cars and used cars. 

Processing fee :

The borrower should consider and compare the processing fee charged by each bank and financial institution. The lower the processing fee, the more the money saved by the borrower. Such information is available on the website of the bank or the financial institution.

Insurance :

It is a wise decision to take insurance cover on the car purchased. However, the borrower should consider doing their research on insurance covers rather than accepting the one offered by the lender because the lender offers a cover from an insurance company with whom they are affiliated, so the borrower may not get the best deal. 

Other factors :

The borrower should also consider other factors such as the service tax, acceleration clause, offers and discounts, etc., on the car loan.

ICICI car loan provides detailed information regarding the loan process, interest rates, processing fees, eligibility criteria, documentation, etc. Any individual can access this information on their website and use it to make the right decision while obtaining a car loan. The borrower has to repay the principal amount in addition to the interest charged upon it during the decided loan amount.
Also read this: What benefits i will get from car loan 

Nowadays, a person can easily get a gold loan online by following some simple steps. But it becomes very important that one should have a sound knowledge of how to go about getting these loans. So let us discuss some of the important points on how to choose the right gold loan for you.

Getting a Gold Loan is not really a process involving a lot of hassle or stress; if everything is done precisely, one should do all the steps carefully and check all the criteria twice before getting to a bank to avail of a gold loan. Certain formalities need to be taken care of before getting any type of loan. This completion of formalities may take up a lot of time. Still, as in the case of gold loans, they are easy to avail, so the process can be completed pretty quickly if the requirements are catered to correctly.

First, let us talk about the right eligibility to apply for a gold loan. One should apply for a gold loan only if he can fulfil the eligibility criteria. Otherwise, he may not be sanctioned for the loan, so a person should be self-employed, salaried, professional, businessman, farmer, trader etc. so that he can avail a gold loan, then, he should be able to meet the age criteria that is, the age limit for availing a gold loan should be between 21 to 60 years of age.

What documents should one carry for applying for a gold loan? For applying for a loan, banks and money lenders ask for a lot of documents, but minimal documentation is required in the case of a gold loan. Some of the documents required are stated as below: One should carry their identity proof, which involves PAN card, Aadhar card, and then, current address proof is also very important such as, aadhar card, postpaid bill, landline bill, water bill, electricity bill, address updated in bank statement/ bank passbook, driving license, voter ID, passport, rent agreement, gas bond paper with the latest receipt, credit card statement etc.

What is the tenure for gold loans? As tenure plays a major role in deciding whether one is in the state to apply for a gold loan or not, one should keep this in mind. The tenure for a gold loan is six months, and it can be renewed for another six months without any extra renewal charges. Since the tenure on a gold loan is very short, one should make sure before availing the loan that he will be able to repay it within the stipulated time; otherwise, the gold pledged can be taken if one fails to repay their loan within time. 

Another important thing that you need to know is how long it takes to get your gold loan sanctioned? So, as you may know till now that getting a gold loan is quite easy and simple and if you have all the necessary documents and you are able to meet the lender’s criteria, then getting a loan will no longer be a timely procedure; you can even get a gold loan in one day.

One of the easiest ways to avail of a gold loan with minimal documentation and transparent charges can be through the HDFC Gold Loan. HDFC provides a quick and easy solution to get a gold loan. HDFC bank gold loan comes with a variety of interest rates on term loan, overdraft, EMI based loan etc. One can easily repay them on their own terms of tenure as they provide flexible tenure ranging from 3 months to 24 months. They require minimal documents such as passport, driving license, voter’s ID card, aadhar card issued by UIDAI, PAN card or form 60, a passport size photograph, Agri allied occupation documentation etc. If you are able to present a few documents correctly to the bank, you will surely be sanctioned for the loan in no time.

Also read this: What is the Top-Up Gold Loans Scheme 

There are a lot of people who do not know much about car loan and are vulnerable to some mistakes. Therefore, to ensure that a borrower does not make any mistake before obtaining a car loan, here are some of them to make you aware: -

1. NOT SELECTING A SHORTER TENURE-  A borrower should opt for a shorter repayment tenure rather than going for a longer tenure. A borrower does this in order to lower the interest rate, but he ends up paying a lot more than the actual price just because of the selection of the longer tenure. The loan repayment tenure and the rate of interest are inversely proportional to each other, so a borrower tends to choose a longer tenure of repayment to get a lower rate of interest, but it is not beneficial at all. A borrower should choose the shortest term that he is comfortable with in order to minimize the interest outflows and maximize the benefits of the loan.
   
   
2. NOT SHOPPING AROUND- The smartest and the most important thing that a borrower has to do before applying for a car loan is to research and do all the homework before applying for a loan and even before selecting a vehicle. Selecting a good four-wheeler on a good deal is very important, but arranging reasonable and affordable financing is much more important. Most of the car buyers only focus on the car that they are buying and not on the best deals for the car loan. A borrower must check all the options and the available benefits and then select the car loan, which has the best interest rates and the best features.
   
   
3. ONLY FOCUS ON EMIs- Most of the borrowers tend to make this mistake. The only focus of them is on the Equated Monthly Installments (EMIs). Some of the car loans offer smaller EMIs and longer tenure of repayment. The one thing that we need to know is just because the EMI looks reasonable and affordable to you, at first sight, does not mean that it is the best option. You need to look at the big picture and all the other aspects too. A borrower has to check how much is the interest that he will pay in total and everything else before selecting a particular option. You cannot make a decision only on the basis of the amount of the EMI.
   
   
4. SELECTING THE  NO DOWN PAYMENT OPTION-  This is a common mistake that the borrowers make. Down payment means that you have to pay a certain amount of money at the start of the loan to get your car. However, in some of the loans, there is a ' no down payment option, where you do not have to make the down payment. This option sounds tempting but is not beneficial in nature. This is because the option of no down payment implies that the borrower will have to pay more on the EMIs in the future. In addition, the amount will be higher because there will be a higher interest rate on them. Also, there are some fees and hidden charges that the borrower does not know.
   
   
5. NOT CHECKING THE ONLINE PLATFORMS: - This is one of the biggest mistakes that a borrower can commit. You have to check the online platforms too, maybe because they will be more easy and affordable. Getting a loan online is easy as compared to the offline mode. You need to check the deals as it is important. Bank of India Car Loan has attractive interest rates.
   
   
6. BUYING A LOT OF UNNECESSARY SERVICES- Most of the banks or money lenders offer some additional services to the buyer. It may include life insurance schemes, warranties. Though all of these services are beneficial, you should check heir every aspect before applying for a loan.

Also read this: Best Things Of The Car Loan 

Many clients with gold in their hands are looking at gold loans as a method to meet their credit demands, and Indian financial institutions provide a range of gold loan options as well. Gold lending companies and banks have observed an increase in demand for gold loans in the preceding year after the coronavirus epidemic.

Many customers with gold in their possession are exploring gold loans as a way to satisfy their credit needs, and Indian financial institutions provide a variety of choices for gold loans too. Since the coronavirus outbreak occurred, gold loan firms and banks have reported a rise in demand for gold loans in the previous year. Customers may also apply for a gold loan online, where the bank would assist them in selecting loan options through their website or mobile app. Customers can compare interest rates and select the most advantageous choice. The applicant is subsequently verified by the financial institution using their Aadhaar card data and a video-based KYC procedure. From this point forward, the financier assures the safe custody of the gold until the loan is repaid and the gold is not taken back by the client. If the client does not repay the loan capital, the lender has the right to keep the loan and auction it off to reclaim the investment. This is where the Yes Bank gold loan comes into play, as clients are asked to repay on time and, in the case of a claim, to renegotiate the loan payback terms.

When a user agrees to part with gold jewellery or bars by vowing against the financial entity's gold loan transfers, they are given a receipt, also known as a pawn ticket, that contains all of the facts about the claimed ornaments, including weight, images, and other information. When clients choose this service, a business representative comes to their house to assess their gold jewellery on the spot and select and agree on a credit amount, which is subsequently sent to the customer's account. Always check the credentials of policymakers who are scheduled to visit ahead of time to ensure security. With the effect of COVID, the customers can request this doorstep facility to avoid contact with people in this epidemic situation.

How does the gold loan work?

Customers are not required to pay back the loan in monthly instalments. They have the option of making bullet repayments, which refer to a one-time payment for the whole amount owed on a loan, generally at maturation. The consumer has the choice of repaying the balance and closing the account or reviewing the jewellery to extend the term. Before giving a loan amount, the lender examines the pledged jewellery in terms of purity and weight, as well as the jewellery ownership and identification documents supplied, before determining the LTV (loan to value). Gold has been regarded as a valuable treasure by civilizations from the dawn of time. Gold is a proven technique to create cash resources rapidly in times of need. If you're thinking about taking out a Gold Loan against your real gold, you should use Yes Bank's Gold loan calculator to plan out your gold strategy. The calculator is a simple, user-friendly online tool that may be used to determine your monthly, quarterly, or half-yearly interest/EMI for a gold loan repayment. You can figure out what loan you're qualified for and how much interest or EMI you'll have to pay if you know the quality and net weight of gold jewellery.

How to attain credit scores in a gold loan?

Credit score providers are cautious of notifying gold loan companies about defaulters, and a downgrading may hurt a customer's chances of receiving other types of loans. Because gold loans are backed by your gold, you should be cautious about loan repayment and only borrow the amount you need and can comfortably return.

Conclusion

Clients are required to return the loan on time and, in the event of a claim, to renegotiate the loan payback conditions. This is where the bank gold loan comes into play. Customers may also apply for a gold loan online, where the bank will guide them through the loan selection process via their website or mobile app.

Also read this: Benefits Of Gold Loan