MYTHS ABOUT GOLD LOAN

They have a lot of misconceptions about gold loans and how they function. If you're in the dilemma of taking out a gold loan, read on to clarify some common misconceptions about gold loans. Individuals or applicants can use the Gold Loan Calculator to figure out how much interest they would pay on a gold loan they wish to take out against their gold or gold jewellery. Their gold or gold ornaments will be held as collateral or security by the lender, bank or NBFC until the loan is fully repaid.

1. Obtaining A Gold loan Is A Lengthy Process:- When it comes to gold loan myths, this is the largest one of them all. The only loan that you can receive on the spot is a gold loan. Banks and non-bank financial institutions (NBFCs) authorise gold loans and disburse loan funds within a day, if not an hour. So, if you're in desperate need of cash, a gold loan is the way to go.
   
   
2.  You Won't Be Able To Receive A Gold Loan If You Have Ancient Traditional Jewellery:- Many people believe that banks and non-bank financial institutions (NBFCs) exclusively lend money for new and recent gold jewellery. As a result, despite having many old gold ornaments, they would not ask for a gold loan. However, let us clarify this myth for you: banks do lend money on older gold jewellery. To qualify for a loan, the gold must be pure and at least 18 karat.
   
   
3. Only And Only Jewellers Can Offer The Gold Loan:- Many big banks and NBFCs now provide simple gold loans with attractive interest rates. As more people began to invest in gold, numerous banks and non-bank financial institutions (NBFCs) began to offer gold loans. Few non-bank financial institution (NBFIs) specialise in gold loans. Taking out a gold loan from a reputable bank or non-bank financial institution is always safe and secure. Those who believe that only jewellers can offer gold loans and are concerned about their authenticity might apply for a gold loan from a bank or non-bank financial institution ( NBFC). The Bank of Baroda Gold Loan offers secure on-the-spot processing, flexible repayment options, and more.
   
   
4. Your Gold May Be Discreetly Switched:- To secure a loan against your gold, you must keep it with a bank or NBFC. The bank or NBFC will return your gold jewellery if you repay your loan within a specified time frame. Many people believe that your ornaments are replaced with fake decorations by money lenders. As a result, many choose not to take out a gold loan because they are concerned about the protection of their precious jewellery. However, this is not the case. Banks and non-bank financial institutions (NBFCs) have particular security and locker systems in place to secure your gold loan held as collateral. It will only be deleted once you have completely paid off your loan. So you may confidently hand over your gold to a bank or NBFC for a loan.
   
   
5. The Interest Rates On Gold Loans are Incredibly High:- Depending on the type of loan, banks and NBFCs offer different interest rates. If the loan is unsecured, the interest rate is high, but the interest loan is pretty small if the loan is secured. A gold loan is a sort of secured loan. As a result, banks and non-bank financial institutions (NBFCs) do not charge exceptionally high interest rates. The interest rate on gold loans may vary between 10.26% and 26%. The interest rate varies depending on the loan borrower's characteristics. A gold loan calculator can assist an applicant in calculating the approximate EMI that must be paid to repay the borrowed amount. Applicants can try out the different interest rate and repayment terms offered by top financial institutions using the Gold Loan EMI calculator.

Read More:- GOLD LOAN FOR PURCHASE SOMETHING