There is no doubt that in times of urgency, a gold loan may be made available for rescue. Gold loans can be granted to anyone with idle gold sitting in their homes by various banks and financial institutions. It just has to be sent to the lender for an affordable rate of interest to get the loan amount. This factor is one of the best and easiest options today for a gold loan. It also brings a certain credit mix into your profile due to the secured nature of a gold loan. While taking an emergency gold loan, one has to keep the below points in their head. Choosing the right lender is as important as choosing the right borrower. The credibility of the Lender When we told you to receive a gold loan, you had to present your gold to the lender as collateral or security. After the loan is repaid, the lender returns your gold ornaments and gold coins. Some lenders also distribute your gold in case of an emergency for part of the loan.
But did you ever consider a situation in which the lender is a scam and you would not get your gold even after making full repayment ?
Well, you need to check that the creditor from which you opt for a gold loan is credible to avoid such situations. Please remember that you choose your creditor as a reputable public or private bank or NBFCs to keep your gold safe with them. Always investigate the lender you are looking for a loan from. Factors such as the customer's loan facility reviews should be checked for your gold security measures and other things.
Loan Amount :-
This is one of the key factors when applying for a gold loan. Several lenders give gold loans, but the amounts of the gold loan vary between the banks. Be aware that no creditor gives the amount of your loan 100% of your gold value. It typically ranges from 65% to a maximum of 85% – 90% of the gold value. You can therefore get a maximum INR 9 lakh loan from any one of the lenders, for example, your total amount of gold is INR 10 lakh. It is therefore important to check the characteristics of the respective lender so that you can make a better decision while choosing your Gold Loan Facility's highest LTV ratio.
Rate of Interest :-
Due to its direct effect, it is the most important factor in determining your refund amount. Therefore, always select a lender with the lowest interest rates to ensure that there is no greater reimbursement. Therefore, it's important to choose the loan provider that will provide you with affordable Gold Loan Interest Rate ,while also complying with your other requirements.
Tenure :-
The tenure of the gold loan is generally short between 12 months and 48 months. So, before choosing a lender's gold loan, it's important to check your repayment capacity. Because any payment that is not received has an impact on your credit score. Keep this in mind, therefore, when selecting the tenure and the method of paying your gold loans.
Repayment Methods :-
This is a significant factor, which is ignored by many people as they apply for a gold loan. Gold loans offer very flexible methods of repayment for customers compared to other loans. Check your lender's reimbursement methods for your gold loans. Certain lenders allow the interest to pay the principal at the end of the tenure in advance, while others allow you to pay the interest amount on a monthly, quarterly, semester or annual basis and at the end of the tenure they can pay the total principal amount. You can also choose the EMI method of repayment where you pay both the principal and the interest amounts monthly.
conclusion :-
where to take a gold loan now, though not before, could be easy, since a large number of financial institutions offer a loan like Muthoot Finance Gold Loan.