The most easy and feasible means of obtaining finance in India is gold loan. This yellow metal is always there with the households as an asset. Just because it has high liquidity in cash people put gold as mortgage to take the loans. Whenever you plan to take a gold loan there are many things to keep in mind and here we are talking about the tenure of the gold loan. Gold loans are generally of short term in nature, being 7 days to 12 months (traditionally). Gold loans usually do not take much time. Whenever you visit the bank and apply for the loan, within some hours or a day the amount of loan is deposited into your account. One must borrow if he or she is sure that they can repay the amount. Failure in repayment can result as penal charges, auction of your gold etc.
Many persons feel that the tenure of gold loan should be increased as to provide some ease to the middle class or the lower section of the society. There are still many people who to face difficulty in repayment of loan while having the the proper source of income. As mentioned in the older times and now too banks provide the tenure upto 12 months. So, there were many people who felt that the payers can get trapped in the short term profit of interests. According to " Indel Money" there are banks who charge higher rate of interest in order to gain short term profits.Also, there are some guidelines by the Reserve Bank of India that banks should give the reasonable time to the customers for the repayment of loan. There are many banks which provide 24 months of tenure for the repayment of gold loans. But there are some negative aspects of longer tenure too.
Longer the tenure, higher the interest rates.
There may be a scenario for the customers who does not have a reliable source of income. They may try to delay the repayment of the loan. At first, this idea seems to be good because now apart from loan you can look after your daily needs. But as the time will pass they will get to know that the idea of delaying was wrong. Whenever you try to delay the repayment the gold loan interest rates appears to be higher. It will become a burden later. If one ever faces some difficulty while repaying the loan there are several benefits you can avail from the banks within this tenure. So, try to repay your loan amount as soon as possible.
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