We all pretty much know and are aware of the fact that gold loans have been in demand and we too undoubtedly think that they are the best choice. Given that the best choice among the other loans is because of the various benefits they bear in many ways when compared to any other loans like that of personal loans. Now on a major point of this domination of gold loans is because the gold loans are secured type loans.
But now a question arises regarding gold loans, that is about their period which is nothing but whether the borrower who wishes to go and get himself or herself a gold loan should be decided what to opt regarding the period of the loan, that is if it is taken to be for a long term or not. So, we are here to give you and specify you by bringing out some of the certain reasons and points about what’s the best pick one can make for themselves and at the end to make a choice for opting long term gold loan or not!
Anywhere and everywhere the gold loan interest rate shall keep varying from one lending institution to another, that is nothing but from certain banks to banks and the variation can also take place in Non-Banking Financial companies, which are also a great source to provide people with gold loans.
Now to take an example, let us consider what the bank of India offers in the subject with gold loans. The Bank of India gold loan interest rate is offered from 10.50% onwards for the gold loans. And coming to the loan tenure that Bank of India offers is, for a period of about 3 months to 36 months, when someone opts for a gold loan.
As we have seen both the rate of interest and tenure period now to look at the loan amount, the bank of India has made it available from ₹ 20,000 to up to ₹ 20 Lakh. The bank of India has also displayed its repayment scheme, which is known as the ‘Bullet Repayment Scheme’. So, these are few that may not be the same at some lending institutions and borrowers can choose accordingly. For the calculations to get easier, the borrowers can use the gold loan calculator to get the instant results of the amount to be paid to the bank lenders.
Now, if we keenly look at the newly launched long term gold loan by Kerala, which happens to be from a Non-banking financial company, which is named “Indel Money'', has given out and showcased its newly launched long term plan of gold loans, and this was mainly done in the recent times of COVID and to balance the financial situations. This long term scheme includes a great tenure period of almost 2 years. The main reason behind it being for the ease of customers and to offer them with more transparency.
So, as seen from above, we can get a gist of it and conclude to a certain point that long-term gold loans when considered to be implemented, customers are benefited in several ways starting at the low-interest rates for a longer duration. Moreover, the customers or the borrowers can take ahead and explore more options that are open to them.
Conclusion: However, in the end, it all depends on an individual to opt for what's best for him or her depending on their financial needs and situations. So, it is at last your will and wishes and mostly your responsibility to do proper research and opt for the best.
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