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The agriculture gold loans given by financial institutions begin at an interest rate of 7.00% per annum. Agriculture Gold Loan Interest Rates, income Eligibility, repayment structure, repayment period, fee & charges vary from one institution to another.

Most of the time, banks and NBFCs offer interest rates with concessions to the farmers on their normal gold loan schemes for agricultural requirements. On the other hand, other financial organizations have a separate scheme for agriculture gold loans which is commonly termed as Agri Gold Loans. Use Gold loan calculators to know your gold loan rate per gram by different lenders like Manappuram Gold Loan Rate per Gram etc.

A few important details related to Agriculture Gold loans

• The amount is given as a Loan : Any loan amount from 1,000 rupees to 10 crores* rupees
  
  
• Interest Rate:  Starting from      7.00% per annum

• Repayment types:  EMI, lump sum or as per lenders conditions

• Gold Items recognized : Gold jewellery after proper verification for quality and quantity

• Term : Starts from 1 month. Maximum is 36 months

• Processing Fee : 0 -1% of the loan amount

Eligibility Criteria :

• The borrower should be completing the KYC procedures as called for by the lender

• Age Eligibility: Minimum 18 years of age and maximum 65 years of age

• Borrowers must be engaged in activities directly related to agriculture or agriculture itself.

• Borrowers who are engaged in activities allowed by the Government of India / Reserve Bank of India to be categorized under the agriculture sector

Documents Required

• Timely filled in the application form with passport-sized pictures

• KYC Documents of the Borrower such as  Voter’s ID card, Aadhaar Card, Driving License, PAN Card,  Bills such as Water Bill and Electricity Bill

• Proof of Borrower-owned agricultural land 

• Proof that crop is being cultivated there

• Business Incorporation Certificate

Any other document requested by the money lender

Agricultural Gold Loans are extremely helpful for the farmers as in the case of other loans, the interest rate is too high and they often ask the landholdings of the farmer to be kept as security. In case the farmer is unable to pay back the loan amount, the landholding is seized and sold off to get their losses compensated.

The poor farmer then is left with no source to make a livelihood.

I'm a case of an Agri Gold loan, the jewellery is kept as security and in case the farmer is unable to pay back the loan, the Gold would be seized and sold off. This would still be unfortunate but at least would not snatch away from them the only source of income they have.

Also, the rates of interest on Agriculture Gold loans are far less than other loan products. Even the other charges such as processing charges are negligible.

They can mortgage their ancestral jewellery which shows its face only during special occasions and put it to far better use.

If unfortunately, you are not qualified for the Agriculture Gold Loans of any of the Banks or any Non-Banking Financial Corporations, you might be interested in other alternatives to fund your financial requirements for agricultural activities, you can also go for Kisan Credit Card (KCC). 

A Kisan Credit Card (KCC) is a Government of India scheme which has been launched to protect farmers from high-interest rates that money lenders from the unorganised sector mostly charge from them. Under this scheme, the interest rate can be very low, as low as 2%. 

Moreover, the repayment time is established on the harvesting or transaction period of the crop for which the loan amount was taken. Banks such as Axis, SBI, PNB etc. provide Kisan Credit Card service. A thing to note here is that the terms and conditions of different Banks and different NBFCs differ so it's better to get in touch with a company that provides financial consulting regarding different banks, different NBFCs and the Loan products they offer plus their key takeaways.

In our country in India, the gold is to obtain for a large amount of jewellery and the coins which are taken out then will account for 50% of the total gold reserves of the whole world based on gold loan rate per gram gold is not only used as jewellery but also can be used in maintaining financial stability even during the time of inflation and the worldwide crisis just like what is happening right now. Gold is the most precious metal in the commodity market with the price fluctuation but not to that kind of extreme effect due to which if properly focusing upon the market trends and the charts. There will be readily understood that gold can easily beat the market trends based on the gold loan per gram rate. This is why there has been no use of Gold loans instead of other types of loans in India. If there is any kind of uncertainty while repaying the loan or will not be able to pay the loan for the same can be sold in the market by the financial institution to recover the leftover amount due.

According to the current phase of the World, India has fought back in a great way to bring about financial stability and is among the top 10 economies of the world. This is because of the reduction in the rates of interest and the other relaxations done so that the people who are finding it difficult in providing the repayment of the gold loan are now being able to properly giving payments on particular time due to which the loan repayment is also not on pause and the financial growth by the revenues of those particular banks and bad debts will not be increasing more.

There are different types of options available for the treatment of gold in our country, which is not like that in other countries. The answer, for this reason, is simply that the population of India is huge and diversifying religion and caste and creeds are the main reason to which such an option has been arranged. Different religions have different festivals, and in all the festivals, there is a significant value of gold being good luck or an auspicious look and whatever the reason may be. For example, the SBI gold loan rate provides facilities for the customers. Due to the vast diversification in the Indian market, the repayment options in the foreign companies or The Financial institutions who have to headquarter outside their India have even given the repayment options as per the Indian needs. There is a tendency of getting the bonus in different kinds of jobs during the festival season which comes near about in October and November. This is why there is a repayment option called the bullet prepayment or foreclosure, where a particular person can pay the interest and the principal amount whole at a time. The last number of the population comes under the capability where the EMI option is the best. The interest and the principal amount are equally divided among the number of months of the tenure of the loan.

In our country, a gold loan is not taken just like the emotion of a gold loan. But, still, it is availed for the different kinds of expenses which are very much familiar in almost all the houses and has been seen that if a person is having a two-wheeler the youngest member of the house who has just completed 18 years is demanding for a new bike while on the other side mother or grandmother is talking about the marriage of their children and grandchildren and planning to simplify that how the shortfall of the gold pieces of jewellery will be done.

Seeing all the conditions and the circumstances before entering the Indian market one will have to get prepared from the beginning that the company or the financial institution whatever it is will have to consider the wide variety of options to serve millions of people who are searching for different kinds of options.

Read More:- MYTHS ABOUT GOLD LOAN 

When it is difficult for people to afford their daily expenses, how will these people pay monthly instalments? It is difficult, and this creates a negative impact on the minds of people regarding loans. To do that, people generally take loans. In earlier times, loans were not an easy task to get through, gold loans used to require a lot of rushing and stressing but now that the times have changed, it has become more accessible for people to avail gold loans, and with the introduction of gold loans it has become even more accessible, as earlier it took weeks for people to get their gold loans sanctioned but now people can get their gold loans sanctioned in just a few minutes, they can get this done just by sitting at their homes and by the click of a few buttons. During these testing times of the pandemic, people are finding ways to get quick money to fulfil their needs and wants. Until the situation gets back to normal, the moratorium helps save people and provide them with some extra time to pay their existing loans. This helps in reducing the burden of loan repayment during hard times.

SOME BENEFITS OF MORATORIUM ARE :-

• They are distributing the accrued interest in later month’s instalments equally to decrease the burden.
  
  
• Add the interest rate amount at the end of a few monthly instalments to get the advantages of the moratorium.
  
  
• The application for a moratorium is straightforward and does not require much effort, and a person can withdraw it back as he feels it is convenient to pay back the loan amount.
  
  
• By paying additional amounts or instalments at the end of the tenure period of the gold loan.
  
  
• Several conditions need to be varied to check if the person can get the moratorium. It majorly depends on the bank to check whether the person is suitable for availing of a moratorium.

These are benefits people can get through the moratorium, apart from the many other benefits provided through the gold loans. Yet, one should check when they will get a gold loan and compare several gold loan interest rate. Therefore, such details need to be evaluated, compared and then taken care of by people to easily avail gold loans and benefit from the amount of loan without stressing out in such testing situations. All the banks and lenders have different rules for providing moratoriums. However, almost every bank and lender provides these benefits to their customers at easy terms and conditions that might vary from bank to bank; more or less, they are the same. So these are a few things to bear in mind when applying for a moratorium so that they end up with a contract that does not put them in any additional risk and makes it simpler for them to handle the loan amount rather than making it easier and more difficult for them. As they provide relaxation to the people facing monetary issues and avail loans to cover their expenses, they get comfortable with the moratorium that banks and lenders offer. Therefore, a person should be well-versed with such details that the banks easily offer them to get through challenging times.

It is easy for people to get through this period if they have a good connection with their banks and lenders as they understand their customer’s problems and try to help them. For example, suppose I want to take a gold loan. In that case, I will be suggested many options but one such option which you can search online also is Manappuram Gold Loan Near Me. They care about their customers and understand their problems to grant a moratorium to them without any difficulties quickly. They will give their customers genuine advice and always see that they are benefitted from those decisions; they have easy conditions for the moratorium related problems. It is readily available, and people can relax just by doing some simple steps so that these times don’t cost people their life’s savings.

Also Read:- A Gold Loan for Financial Emergencies 

A personal loan is always a convenient alternative for being pocket-friendly, with cheap instalments and providing a speedy disbursal of loan amount with nominal official paperwork to be done against it.  Moreover, one can pay it back over time. Moreover, it works for the borrower to build credit and make it manageable to reduce the unsettled debts rate by extending competitive interest rates and adjustable borrowing limits. Wedding loans, home renovation loans, travel loans, medical loans, debt consolidation loans, and small personal loans are examples of personal loans.

A person who misses a payment on his loan or other debts for more than a billing cycle is considered a loan defaulter. Missing loan payments on time is not a healthy financial habit, and non-repayment can cause severe repercussions for credit score. Managing all debts can be a very tedious task, and it is easy to fall into the debt trap as there are so many loan products in the market. Making a loan default is an unpleasant experience that brings down the credit score of the borrower. An emergency fund should always be ready to deal with any financial emergency as a defaulter does not get a loan quickly. To avoid defaulting, it is best to choose a personal loan with a low interest rate provided by different Financial Institutions. But there are some alternatives available to the borrower for repaying a personal loan after he defaults. For example, HDFC personal loan interest rate, SBI personal loan interest rate.

Punjab National Bank personal loan interest rate, etc. There can be genuine reasons for a person to do a loan default, but it always has a long-lasting effect on the financial portfolio of the borrower. Further, it damages their credit score indicating poor debt management by him. Among various options available to secure funds in case of emergency needs, a personal loan is always an option as it is not that rigid regarding the eligibility requirements of the applicant.

Lenders or lending institutions consider the repayment capacity by checking the CIBIL credit score before authorizing him with a personal loan. A poor CIBIL credit score not only imposes rejections but also restricts the power of purchasing, ultimately affecting the standard of living. Though it is not very easy to get a personal loan with a low credit score or a defaulter, it can be availed in some cases.

The defaulters of a personal loan have some alternative to repay the loan amount, and the most common option is to take a secured loan like a gold loan and repay the personal loan. Another option can be to convince the lending Institution of the creditor to restructure the loan with an extended period of repayment and a low rate of interest. Even some personal borrowing can also be done to repay the loan from friends and relatives. Finally, apply for another loan with a guarantor or co-applicant with a good CIBIL credit score and pay off the unsettled dues with the generated loan amount.

A good market study and getting a cheap personal loan with low interest and nominal processing charges are always recommended. It is always recommended to take a personal loan after accessing all the factors of it. It should always be estimated first whether the amount borrowed for the personal loan can be repaid within the stipulated time or not. The borrower must have a stable and steady income and not many other debts previously piled up. The loan applicant must do proper financial planning of his monthly payments. The EMI that has to be paid for a personal loan can be evaluated before taking up the loan with the help of a personal loan EMI calculator.

Must Read:- Benefits Of Personal Loan 

Personal loans can be a great way to expand your business, finance a new home, or pay off debt, etc. Customers get the flexibility to use the funds they get from personal loans freely. So they can use it for multiple purposes at the same time.

It is an unsecured loan that can be availed at any bank, private institution or NBFCs (Non-Banking Financial Companies). You don't have to pledge any assets as collateral to get funds from this loan. However, you'll have to pay a small amount as interest rate every month.

A personal loan is the best choice if you're looking to get quick fund assistance. There are a lot of services/benefits that can be gained by applying for a personal loan. 

We've mentioned some of the common benefits below -

1. Money is available right away: 
   You can instantly get funds after your documents are verified. But the process is a lot quicker and easier when compared to other loan options.
   
   
2. Personal loans are a proven way to build your credit:
   If you have a bad credit score, then you can use this loan as an opportunity to increase your credit score by repaying the instalments on time.
   
   
3. Personal loans are one of the cheapest sources of borrowing money:
   The HDFC Bank Personal Loan Interest Rate is pretty reasonable and affordable. It is comparatively lesser than other loan options. So you can easily get funds in the cheapest way without pledging any asset.
   
   
4. Personal loans are a solution for emergencies:
   You don't have to use your savings to meet fund requirements in emergencies. You can simply get funds by applying for a personal loan.

Borrowers have to repay the amount they've borrowed along with the interest rate within the loan tenure. Missing even a single instalment can affect credit scores negatively. And if the borrower can't repay the loan amount, then the credit score will decrease heavily. A bad/low credit score will make it hard for the borrower to take a loan in future. So you can use some online tools like a Personal Loan calculator to check your repayment capacity.

However, banks don't monitor the end usage of the funds given through personal loans. So you can use the funds you get through a personal loan for various purposes.

Some of the common uses of personal loan are -

1. Debt consolidation:
   You can use the funds you get through a personal loan to repay your debts, loans and credits. So if your debt collection date is near and you're in short of funds, then you can easily apply for a personal loan facility and get funds through it.
   
   
2. Home renovation:
   We all need a change in scenery. Our scenery plays an important role in improving our productivity. And during this pandemic, everyone has been working from home. So you can apply for personal loan and use the funds you get through this loan to renovate your house.
   
   
3. Refinancing:
   This means that you can apply for a loan to pay your existing loans. So you can use the funds you get through a personal loan to repay your existing loans.
   
   
4. Medical Bills:
   The pandemic is spreading crazily. And the hospital bills are getting expensive day by day. So to pay your current medical bills, you can easily apply for a personal loan and repay the money using the flexible repayment method.
   
   
5. Wedding:
   Weddings are a huge deal in India. It is the most momentous occasion. So if you're looking for funds to meet your wedding expenses, then you can apply for a personal loan and get funds through this loan.
   
   
6. Vacations:
   We all need a break from this stressful reality. So to take a break, you can easily plan a vacation. You don't have to use your savings to pay all the expenses. You may quickly apply for a personal loan and receive funds as soon as the verification procedure is through.
   
   
7. Miscellaneous expenses:
   You can apply for a personal loan if you're finding it hard to manage your current expenses or bills.

Conclusion -

There are a lot of banks, financial institutions and NBFCs that provide the facility of personal loans. So it's important to compare all the banks and then choose an ideal personal loan according to its interest rate, eligibility criteria, charges and repayment capacity.

Personal loans are considered one of the best ways to fulfil the need for funds for any purpose, whether financing your children’s education or planning a holiday with your family. Personal loans can provide you with a solution to everything without much tension and stress. Personal loans are considered best to overcome any finance-related problems. Everybody is well aware of how to get a personal loan. Still, not everyone knows how to avail of a personal loan at low rates of interest as the rate of interest is the only factor that can change your amount of personal loan, the tenure of the loan etc., substantially.

So, let us learn some ways by which one can avail of a personal loan at low-interest rates as below:

• Compare lenders to get the best offer: A person can successfully avail of a personal loan at low-interest rates if he takes the loan by conducting prior research. And good research can be done only if you compare the personal loan lenders in the market to shortlist a loan opportunity with a reasonable rate of interest and convincing features. One should take their time to conduct this research to get the lender with the terms and conditions that suit you best. 
• Qualify based on your professional credentials: If a person has a good job and earns a hefty salary, he has a better chance of getting a personal loan. This puts the borrower in a better position to negotiate the rate of interest for the loan. In addition, if the company in which the borrower is working has a good name, then that makes it even better for you to convince the lender to cut the rate of interest since your company’s good name can give him the surety that you will somehow manage the amount to repay the loan and monthly instalments.
• Maintain a good credit score: Your credit score indicates your record of handling your credit. It indicates how you tackle these credits. A good credit score has to be around 700 or 750, making you an appropriate candidate for availing of a personal loan. And it has always been, the higher the credit score, the better your chances are to get a personal loan. This is because the loan amount, interest rate, and repayment terms are all decided based on your Personal Loan Eligibility criteria and credit score. And if you have a good credit score, it becomes easier for you to negotiate the terms of the interest rate for the personal loan.
• Look for seasonal offers: Most lenders and banks notify their customers about seasonal offers through mails and SMS. So one should keep a check on these offers to get the most favorable deals out of them. These offers are presented for a limited period, so they should be grabbed at the earliest whenever one finds a suitable one. Moreover, most of these discounts come around festive seasons so that people can keep an eye on such emails and messages at that time.

These are some critical points where you can try and get a low interest rate on your loan by keeping these points in mind. You should always try to maintain a good credit score and employment status to get a low-interest rate on your loan. Not only it will get you personal loans easily but also keep your credit scores appropriate for future needs.

Several banks offer you a personal loan, and as mentioned above, one can always check, evaluate and compare these various banks and financial institutions before concluding choosing one of these. One can also check their monthly instalments by the SBI Personal loan calculator to get an idea about the monthly reimbursements and choose the most suitable rate of interest that is convenient for them to repay. Other factors have a vital role in deciding the interest rate, and one should study these factors to avoid any sort of casualty.

A Gold Loan is the best option for a financial need and crisis. The loan is secured and offers excellent deals. However, a gold loan has multiple features that require adequate research and knowledge before availing one.

What is a gold loan, and How does it work?

Banks and Non-Banking Financial Companies(NBFCs)  provide loans to customers upon receiving gold asset(s) collateral. And thus, a gold loan is secured and has maximum protection. A gold loan is a general-purpose loan, where the bank or the financial institute doesn’t raise questions on a borrower’s reason for availing. Therefore it can be used for any and all reasons. Medical emergencies, inexplicable financial crises, educational needs, home renovation, construction, business reasons, vacations, weddings, technological and electronic gadgets, machinery purchase, the list goes on forever. No matter how big or small the value of reason is, a gold loan is present to help you. Upon pledging the gold asset, the value of the gold is determined based on its purity and weight of the gold. And the loan amount is granted for a certain period. The borrower needs to pay back the owed amount with interest by the end of the tenure. The loan can be availed both online and offline conveniently.

Gold Loan features:-

• Easy Processing:- Compared to most other loans, a gold loan has the most convenient and flexible processing. This is because a gold loan only requires the minimum amount of documents. With two photocopies, a valid id proof such as a PAN card, Voter Id, Aadhaar Card, Driving License or Passport, and Gold article(s), you can avail of the loan within several hours.
  
  
• Swift Accessibility:- A gold loan can be availed both in online and offline modes. In the conventional face-to-face way, you can just walk into the bank or NBFC and submit the required documents with collateral, and the loan amount is disbursed on the spot. However, upon choosing the online mode, you have to fill an application form and upload the required documents in addition to the required loan details. After the application submission, the bank or financial company calls you for further processing. Both the methods are effortless and have proved to be extremely beneficial over the years.
  
  
• Loan Amount:- The loan amount sanctioned is based on the value of the gold. The purity of the gold is required to be in the range of 18 carats and 24 carats. Authorized lenders don’t accept gold with purity less than 18k. The higher the purity of the gold, the higher the loan amount granted. The weight of the gold must be a minimum of 10gm in a few banks and NBFCs, but most other lenders accept gold of any weight. The Gold loan per gram for most banks lies in the range of RS 3,506 and RS 4,621.The loan to value ratio is up to 90%, so if the value of the gold asset pledged is RS 1 lakh, the amount sanctioned is a maximum of RS 90 thousand.
  
  
• Loan Term:- The period the loan is granted for is known as loan term or tenure. The gold loan tenure varies from 3 months to 36 months. The interest amount has to be paid till the end of the chosen tenure. Therefore, choosing the tenure you can afford is primary. Generally, a long tenure has a low interest rate, and a short tenure has a high interest rate.
  
  
• Interest Rate:- The interest rate is a percentage of the loan amount availed. The interest rate is a primary aspect of the loan and needs to be paid on time without default. As the loan is secured, the bank or NBFC has the right to auction your gold if you as a borrower don’t pay interest amount continuously for more than three months. The interest rate of a gold loan is extremely minimal compared to other loans and starts from 7% per annum.
  
  
• The Processing Fee and Preclosure Charges:- Banks and NBFCs charge fees for the processing and approving loans. The gold loan processing fee is NIL in most banks and NBFCs, but some charge a rate of 1% of the loan amount. The Preclosure Charge or the prepayment charge is incurred if the borrower wishes to close the loan account sooner than the end of tenure.
  
  
• Conclusion:-
  
  Muthoot gold loan is a highly renowned gold loan with the best deals and offers in the market. The financing company often introduces various schemes on gold loans for its customers. The financial institute is highly reliable and trustworthy.

Must Read:- How gold loan can reduce risk of loss 

To begin with, all the terms are long haul just as an extremely momentary which are exposed to the field of the vehicle credits are only the residency periods. All the borrowers just as the clients have the full opportunity to choose whatever they are exceptionally more OK because of and keep them all out reimbursements they ought to make. In such instances of the vehicle credit, reimbursement is generally founded on the type of speculations that are additionally paid on a month to month standing by all the borrowers. So typically, a considerable lot of individuals regularly have their questions just as get befuddled about picking the vehicle advance span. Allow us to make one thing clear to you, both the terms have equivalent advantages just as impediments, so all the borrowers should investigate their pay just as all the reserve funds at whatever point indiscriminately settling on one among both of them. Anyway, to give you somewhere in the range of a reasonable agreement and to remove the disarray to a portion of the degrees we will presently let you all think about the professionals just as cons identified with the exceptionally momentary term for the loan on cars.

The absolute first thing is one can take or select a vehicle credit for a transient term and there is no uncertainty in that. Presently additionally going to the momentary advance, they are generally liked for their extremely less time span and furthermore they bear exceptionally low-loan fees at whatever point contrasted with that of the drawn-out term. So, in any capacity, all the borrowers and the client's post for the vehicle credit with a low-financing cost and demonstrate these transient vehicle advances are the best model. Presently let us take a portion of the instances of this Canara bank car loan interest rate and it offers the vehicle advance for certain months, months, etc.

Presently, this is additionally viewed as a brief period that can be selected particularly for these vehicle credits. This is viewed as not being entirely practical in light of the out month to month expanding instalments just as absolute expenses. Be that as it may, these kinds of vehicle credits may accompany low-financing costs which can be just about as low as a level of almost four percent on the advance sum. Indeed, this can be viewed as in the mid-scope of both long just as momentary terms. Furthermore, from the perceptions and records, this is the extremely most favoured sort of credit term by numerous individuals of individuals. As the name proposes, the pace of interest and furthermore the regularly scheduled instalments are practically sensible and lie alongside the midrange classification. 

Through this sort of vehicle advance length, the all-out instalment can be made in an extremely quick manner at whatever point contrasted with the drawn-out terms. What's more, these kinds of vehicle advances are likewise viewed as danger liberated from long haul advances. This is on the grounds that, because of the tragic conditions a significant number of individuals frequently stall out with all the obligations, and at whatever point they pick transient credits, this is adequately apparent to escape the heaping obligations quicker than expected. So transient advances are consistently on an extremely more secure side as far as to complete reimbursements. At whatever point we take a gander at a portion of the moneylenders offering a credit period for practically extremely more months and this is probably the most ideal ways like that of the months yet there may be a slight expansion in the loan fee from the bank's side in the long run.

Top Up Loans and Car Loans are two different forms of loans that are extremely critical behind the infrastructural growth of the country thereby bringing about improvement in the credit structure of the country. Top Up Loans der to those loans which can be availed additionally to the personal loans which are availed from the banking institutions in the country. The top-up loans can be referred to as the additional or extra loans that can be charged over and above the existing personal loan. On the other hand, car loans are one type of personal loan that can be availed from the private commercial banking organizations in the country. Through the use of car loans, we can borrow money from the banks and use this monetary amount to purchase a four-wheeler and pay off the installment amount of the car to the bank along with the interest amount. However, according to the monetary portfolio experts in the country and the financial market analysts in the country comment on the fact that top-up loans are much better than car loans. 

Following are a few reasons they justify as the perfect proposition for the growth of the credit sector and how top-up loans have inherent advantages over car loan-

More Feasible and Flexible Interest Features than Car Loans : Top-up loans have lower interest rates than car loans as the Car Loan Interest Rate ranges from the value of 10%-11% of the car loan as interest amount. Top up loans, on the other hand, are 0.5% to 1% less or lower than the interest rate of the car loan interest rate. Moreover, the lower amount of interest rate for top-up loans determines the strength of the top-up loans and justifies the reason why it is considered to be one of the most lucrative options for interested borrowers and why they sway towards engaging themselves with this form of loan. Lower interest rates attract a large base of the customer and enhance the lending capacity of the borrower.

Ensuring Efficient Mechanism of Installment Payment System : One of the basic advantages of top-up loans over car loans is that the monthly installments payable for top-up loans is much less and affordable than car loans. The EMI payment is determined according to the payable capacity of the borrower. For example- the Dena Bank car loan rate of Interest offers a high higher EMI facility. In a sense, the payment of a high proportion of money as EMI is advantageous since it reduces the loan burden within a short period. On the other hand, top-up loans are also an important form of loan since they offer low EMI Payments. The people availing for top-up loans do not have the income capacity to pay a huge amount of money as EMI. Thus low EMI amounts facilitate the payment of EMI to the bank thereby enhancing the payment capability of the interested borrower.

No Requirement of Depositing Securities in the form of gold, jewelry, and ornaments : At times for availing car loans, collateral securities and security deposits are to be maintained with the private commercial banking institutions in the country. Collateral securities refer to the process of pledging assets to the bank. On the other hand for top-up loans, no collateral securities need not be kept to the banks and thus top-up loans can be availed only with the submission of relevant documents.

Flexible Availing of Loans : In the case of top-up loans, the processing of loans is much easier since the documentation required to be submitted for obtaining ratification of the loan is much convenient and easier. In the case of processing car loans, the process is much more complicated with intricate details required.

A Viable Option for those who require second-hand cars : Top-Up Loans is a perfect option for used car buyers. Second-hand cars can be brought through the implication and use of top-up loan facilities.

Conclusion : Thus the functioning of top-ups has assumed a higher amount of importance than car loans. Yet both the loan mechanisms have an equal amount of importance in the investment environment of the country's investment scenario.

Buying a car is a dream of many Indians. But is it easy to fulfill this dream? The answer is a big yes; with the help of car loans, your dreams could be fulfilled easily. At first, it's only a prized possession, but later on, it becomes your companion in every hurdle. It brings in a lot of memories like long drives, vacations, and celebrating many festivals. And it can be done just by taking a car loan. The bank finances more than 80% of vehicles in India. However, it is not so easy to get a car loan. One should have a good credit score so that the bank is ready to give you a loan at lower interest rates. The bank finances more than 80% of vehicles in India, and you can also get your car financed by the bank. So in this article, we will tell you the importance of car loans.Car Loans have become an effective service in the market as of now. Car loans are one of the most opted secured loans for automobiles purchase. It is not compulsory to take a car loan, but it is recommended to take a car loan as it has many benefits.

SOME BENEFITS OF AVAILING A CAR LOAN ARE AS FOLLOWED:-

1. Interest Rates:- The first question that before taking a loan arises is the interest rate? Is my income enough? So there’s no need to worry as the Car Loan Interest Rate can go as low as 7.50%. Lower interest rates mean savings which would not be possible if you had taken a personal loan or any other loan. Car Loan Interest rate is quite flexible.
   
   
2. Low Allowances:- Nowadays, many banks are eager to pay 95% of the car’s on-road price, which helps the customer not spend money on insurance and accessories. Thus, people having fewer funds can enjoy the bliss of having a car.
   
   
3. Flexible Tenure:- Some banks like the Bank Of India give a provision for longer repayment tenure. It helps the customer to be stress-free and can repay the loan conveniently. Although a longer tenure means the longer, you’ll pay the interest. So it is advised to keep the tenure short.
   
   
4. Simple Process:- Any personal loan or house loan takes many days and months to get approved. But a car loan approval takes less than a day, and sometimes, it is approved on the spot.
   
   
5. Enhanced Eligibility:- Cutthroat competition among financiers helps the buyer maximize the population’s maximum coverage. So everyone who fulfills the basic income stability can get a car loan from various banks.
   
   
6. No Collateral Required:- The mortgage car acts as collateral for the loan due to its market value. The total amount is sanctioned up to 70 to 90% value of the car, and this amount can be recovered from auctioning or selling the car when the debt obligations are not completed. Thus it is called a secured loan due to its worth. 

WHAT IS THE REPAYMENT MODE OF DEBT IN A CAR LOAN?

In Car Loan, a borrower is given various repayment modes over a period to lessen the financial burden of the colossal amount borrowed. This repayment gives the borrower a chance to conveniently repay this amount and enjoy the luxury of owning a car. As Car is a commodity which highly used by people for comfortable transportation and in times of Covid, traveling from own vehicles has been increased. As schemes of repayment like Bullet repayment scheme and Overdraft repayment scheme are quite popular amongst the creditors. Several other repayment options like EMI(Equated monthly installments), Interest Only Payment, Post Dated Cheques, Electronic Transfer, Debit Mandate are a few of the options provided by the banks. One has the full liberty to choose any of the provided repayment options as one’s payment capability and convenience. An EMI Calculator helps in estimating the loan amount over the tenure. 

Thus, the Car Loans at Bank of India is one of the best options to opt for a Car loan as it imparts various benefits and lucrative schemes for potential individuals. A Car Loan is a better option in finance due to its flexible tenure, less incurred interest rates, prepayment options, no guarantor necessitated, and several other benefits. 

A credit card is a plain plastic card that can present you with goods or help you save yourself from a substantial financial debt or crisis in a single swipe. Availing this card is easy, no challenging natural barriers between you and that. They are comfortable and easy for all walks of people. Be a traveler, salesman, laborer, business professional, or magician, and it is unprejudiced and convenient for everybody. Now, it is established that you can avail of a credit card no matter who you are, but can you avail more than one at once? The answer is yes. The banks and Non-Banking Financial Companies (NBFCs) do not have restrictions on the number of credit cards you can avail of if you are eligible to do so. There are no hard and fast rules on how many you can or cannot have. It only depends on your spending and budgeting plans. Bank of India credit cards provide all the best deals in the market that one shouldn’t definitely miss. 

When is having multiple credits cards best?

The credit utilization ratio is the ratio between the loan amount you availed on the card to the amount spent using the card. The ratio is required to be below 40% and preferably 30%. A low credit utilization ratio is considered a good prospect by the banks and NBFCs, which trusts them and gives you a more preference on availing flute loans or debts. But, when you have a low credit utilization ratio, you can avail yourself of another or multiple other credit cards to improve your mark and maintain your relationship with the lender in a healthy way. It is also good when you require emergency funds from a legitimate financier like a bank or NBFC, and you have maxed out your existing credit card. Rewards and deals are like the most attractive features on a  credit card, so, if you are a regular and stealthy user of those, a second or third credit card gives you deals on top of deals. If you want a backup for your financial situation, then credit cards are the best. Also, with multiple credit cards, you can rely on your savings much for your other payments and bills.

When is having multiple credit cards bad?

When you are in already huge debt, availing an additional credit card to your existing one is not the best of ideas as a credit card though advantageous is still a debt that needs to be paid back. When you are freer and more liberal on your spending, i.e. if you are a high spender, then credit cards will only put you in considerable debt. If you have a low credit score, then having multiple credit cards will only hurt you. If you have an unstable job or an irregular monthly income, having a second or third credit card on top of the current one is terrible as credit cards need regular maintenance and on-time interest payments.

Points to remember before deciding to acquire another credit card

1) Know your requirement: Before deciding on the next plastic money, know if you need it for any purpose. For example, you already have a credit card that needs payments, so think and act before using an additional credit card.

2) Know the deals and offers: There are innumerable credit cards worldwide. But it is essential to know the deals and offers you want and might need in the future. Therefore, check if the new credit card offers better deals than your present one and choose the best one accordingly.

3) Know your CIBIL score: A three-digit number indicates the customer’s loan repayment capacity is a credit score. The score usually varies from 300 to 900 and a good score is above 750. Therefore it is a requirement that you maintain a good score. So before going for another one, know if you can maintain the existing credit score or increase the existing one. If either of the above is on the plate, then go for it.      

Must Read:- A car loan planning process 

A loan is an advance made by a lender in favor of an individual who is obliged to repay the amount after a specific period. There are numerous types of loans. Every financial institution has different policies regarding credit matters.

Selecting a credit plan can be quite a dilemma for a person. If someone is considering taking a loan, only a few things need to be kept in mind. 

1. Amount and duration of the loan:

The first and foremost step of selecting a credit plan is calculating the amount that is required. Selecting a plan that offers more credit than required is a foolish decision. Also, the duration for which the plan is selected must be sufficient enough to make the repayment. If you take a loan and are unable to repay it within a time you will be answerable to the lender. For example, if you take a gold loan from a bank for one year and you fail to repay the amount, the lender has the right to sell off your gold articles kept as collateral. In the case of unsecured loans such as personal loans, non-repayment of debt will not be considered a criminal offence but the person who made the error of payment will be declared a defaulter.

2. Rate of interest and processing fee:

When you repay a loan, a certain extra percentage of the principal amount is charged as interest. The rate of interest differs from loan to loan and in the case of unsecured loans, it is comparatively much higher. While applying for a loan, the rate of interest is an important factor to be kept in mind. Since it is a natural human tendency to avoid unnecessary spending, choosing a plan with low interest rates is logical. Gold loans have relatively lower interest rates. For example, the HDFC Gold Loan scheme offers an interest rate of 7.0%.

The processing fee is charged during the loan registration process. Personal loans have a processing fee of Rs. 2500 regardless of the principal amount, whereas gold loans have processing fees with respect towards the borrowed amount. For example, a bank charges a processing fee of 1.50% of the principal amount.

3. Availability of credit within desired time:

Situational circumstances can compel someone to take quick measures. If an unfortunate event occurs and a sudden need for a huge expense appears, credit can be a huge assistance. But most loans take days to get certified. The best option for these situations is a gold loan because they can be availed within hours. This is one of the major benefits of gold loans. People don't have to wait very long to receive a gold loan.

The Gold Loan Interest Rate and eligibility criteria are also different from other loans. Gold loan eligibility criteria are comparatively simpler. Any person of 18-years to an age of up to 75-years can apply for a gold loan with the required documents (Identity and Address proof) and their gold articles. Other loans are different. To apply for a other loans you need numerous other documents such as proof of income, and you must have been an employee for a specific time.

Your credit score is also considered while deciding whether your loan will get cleared or not. After considering all these factors it is clear that applying for a gold loan is a much more logical option. Other loans can be quite beneficial as well but not for every citizen. Gold loans provide an equal opportunity to all people regardless of their financial status.

Conclusion:

While deciding which credit facility to choose from, we must decide which course of action will yield maximum profit. Not everyone would feel that gold loans are better than other loans but for most people, gold loans are extremely beneficial. This is the reason gold loans have more demand.


Read More:- Why gold is the first choice of borrowers