We often forget that we can liquidate the gold without selling it and it is returned to us at the end of the loan tenure. This way we don’t lose the gold we have and our financial emergencies are also met without having to pay large costs upfront and/or breaking into our savings.A lot of businesses use loans as their strategy and it is the most advised strategy by financial counselors as well. Invest your savings into high-interest savings accounts so that you have a cushion to fall back on. When you need any costs upfront you can meet them by taking a loan and paying EMIs afterward. EMIs are way less than the costs which you have to pay upfront.
Gold loans are secured types of loans so banks don’t have large risks associated with them when giving the loan. That is why banks give lower interest rates and longer tenures to pay the loan back. Availing a Yes Bank Gold Loan is very simple; you just need to walk into the bank with your gold article. Although there are some tricks and tips which will help you get the best deal on your gold loan.Banks generally have different schemes targeted towards different demographics so we should see if any schemes are targeted for us to take advantage of it. Banks generally offer schemes for farmers, doctors, public and private sector employees.Make sure you take the scheme targeted towards you so that you get lower interest rates and longer payback tenure suitable for you.One of the most important things you should see is to calculate EMI that you have to pay every month after.
Remember EMIs generally start a month after loan disbursement so you need to be prepared to pay them right away. It is advisable to see that your EMI is not more than 40% of your monthly income as more than that bank will consider you a high-risk customer and you may not receive the best deal on your loan. Banks also don’t provide loan amounts that are more than 15 to 20 times your annual income. These rules are in place to protect you from taking a loan that you will not be able to pay back.Bank secures the right to sell your articles if you fail to pay the EMIs in time. So, this loan has to be a calculated financial risk if you don’t want to lose your gold.
Gold has to be of minimum 18-carat purity less purity than that does not qualify for a Gold Loan. It should preferably not have any diamonds, pearls, or precious stones in it cause they don’t get valued in the loan and they become an unnecessary added risk. Some banks offer less or no processing fee if you complete the documentation process online. So before going to the bank fill your form online and you will not have to pay the processing fee.Valuation charges are also to be paid as the bank outsources this work from experienced gold merchants to value your gold.
Make sure you opt for insurance for your gold so that the bank is entitled to take care of your gold. If there are any damages done then insurance will pay monetary compensation for its repair costs. Also, take the loan from an authorized, government-recognized, Reserve Bank of India associated bank as they are more likely to take good care of your gold articles. They will most probably keep your gold in a locker or a safe vault where some people usually keep their gold for safety.
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