The financial industry is well equipped with many products like that of fixed deposits, current deposits, and many other similar things that are important in each unique way according to the applications and their uses in different types of situations. on the other side of the coin, it is said as there are many but the real-time play is played loans, and among that the gold loan is the main gun of the pocket.
Few things need to be focused upon and to keep in mind while availing loan and while being in the process of repayment of the loan and at the end of the loan payment. Each factor is important as it will lead us to go through the smooth functioning of the loan procedure. Proper management of the gold loan in this time of pandemic situation will make us always remain away from any financial risk particularly in April till June where the peak of the COVID 19 is expected to get a declining graph. It will not only help to deal with the present financial crisis but also will help in the financial planning of the future as well. The Factors are as follows-
Time - The time management is one of the vital factors of any type of loan where planning is required. If a person is requiring a loan in about 6 months to go but at the very much time having the marriage of the sister where he will be having the expenses as well. It is advised not to do any kind of financial event like taking out a loan as from the next months onwards the paying of the first installment will start. There will be a clash between the two events so to have an efficient functioning either there should be some arrangement for the 2nd event if both the things are happening at a time or the events should be rescheduled.
Documentation - The documentation is one of the vital parts of the loan procedure. The loan officer will ask for all the required documents which will also include the proof of address and the proof of identity. Any missing document will either make a delay in getting the loan approval or will get the rejection of the loan application. Once there is rejection from a loan provider it is highlighted in their records or in the records of the subsidiaries which will harm further in those companies also to get the loan.
A credit score - It is a fact that there is no credit score required while one is availing the gold loan. On the other side of the coin if there is a low credit score then there is difficulty in getting approval for the loan or even can't get loan also due to the bad score it is reflected that the person is not trustworthy and is not having the tendency to pay the loan on time .this happens in the case of personal loan or the educational loan. In the case of the gold loan, the gold itself acts as collateral where no other things are required and no worry about the credit score is required too.
Valuation - The valuation of the gold is done while assessing the total value of the gold by the banks and the NBFCs. It is done to get sure that the maximum of the 90% of the loan amount which a person will get is a loan amount. The valuation standard is the gold loan per gram. So one should look after the proper information of valuation the gold loan is done or not because improper calculation can lead to overvaluing which will result in the overpayment by the customers.
Conclusion :
To conclude we can say that there are few things which are seen like the checking of the rate of interest of the gold loans are different in different banks and NBFCs. Having the lowest interest rate on gold loan will be a great deal. Proper comparison will lead to having a better and good cheap deal of gold loan which will save a lot. Keeping all these things in mind will keep the procedure very smooth
Read More:- Some Rules To Follow While Availing A Gold Loan
