In the recent past, the scenarios have changed a lot. In the past, people used to buy gold and keep it in their lockers and it was not used for any purpose at all. Most of the Indian households had quite a good amount of gold kept in their lockers.
In today’s world, no one knows when the need for quick funds arises and for that, a gold loan is the best solution as a gold loan can get you the fastest funds to meet your requirements. But there are certain things or key points that one should keep in mind before availing of a gold loan as with the growth in the market, the risk has also increased, so it is important that one should be cautious and keep important points in mind before taking a gold loan. But now, people have come to realise that gold kept idle in bank accounts can be rather used to get quick funds whenever needed. As gold loans have emerged as one of the most popular ways to secure quick finance. In addition, gold loans can be used for any purpose unlike other types of loans that have a specific purpose.
So, Let Us Discuss Some Of These Important Points:-
- Loan Amount:- As a gold loan is a secured loan, the amount of a gold loan will depend on the gold that you pledge as collateral. RBI has chosen the loan-to-value ratio as 75% of the total value of gold that is pledged. The amount of loan that you will get will also depend on the lender you choose to get it from.
- Interest Rate:- The interest rates of Gold Loan varies according to the lenders and depend on a lot of factors such as loan amount, LTV ratio, loan tenure and many other factors. For example, if the LTV ratio is high, the lender will tend to charge a higher rate of interest to compensate for their risk. Therefore, one should compare the gold loan interest rate from secured as well as an unsecured loan to check the most suitable among them.
- Processing Charges:- Usually gold loans have zero or minimal processing charges that are as low as 1%-2%, it depends on the bank or lender how much fees they will charge, some might charge a fixed percentage whereas others might charge some percentage of the whole amount of the loan.
- Loan Tenure And Repayment Tenure:- The gold loan is a short term loan with a flexible tenure that can range between 7 days to 3 years. This can vary from different lenders and banks. Banks and lenders also offer a variety of repayment options along with the usual monthly instalments mode. Borrowers can choose to repay the principal amount at the end along with all the monthly instalments or they can pay monthly instalments every month and the principal amount at the end of the tenure. A person can even calculate his monthly instalments prior to applying for a loan by using the EMI calculator to know if he will be able to repay the instalments or not. One can choose the one according to their convenience. For example, the EMI system will suit a salaried person with regular monthly income and the non-EMI system will suit self-employed workers who do not have a fixed source of income per month.
Now, these are some of the important points that one should keep in mind before taking a loan as one should make sure that every condition is well-suited for him before stepping into taking a gold loan. Now,if we talk about the lenders or banks, one should make sure that they avail gold loan from a trusted source as you should have trust in the bank or lender you pledge your gold with. So, here is a solution to this, Muthoot Finance Gold Loan. They are well-known for their years of service in the field of lending loans and are trustworthy with your pledged gold. They offer you attractive deals under gold loans from which one can choose what he finds to be the most suitable. They have easy terms and conditions with minimum document requirements. So, one can avail a gold loan from them.
Also Read:- What Are The Benefits Of A Gold Loan?
