Whenever any individual seeks a gold loan, they might face some issues like incomplete information about something or some myth that arose in the market entirely; below mentioned are some myths present in the market, which may affect the decision of you to take any gold loan.
Gold loan myth
Some people think that only jewelers can offer that kind of loan facility. However, some banks and Non-Banking Financial Companies (NBFCs) also offer gold loans to the public.
Some people fear the fact that their jewelry can be replaced with fake lookalikes. But it is people; gold is purely safe in licensed banks and NBFCs. This is because the gold is kept in a vault with robust security, which guarantees the safety of the possession. Whenever you repay the loan, then people would get their gold back precisely in the same state as it was given.
Only gold loan is a very secured type of loan, which has low gold loan interest rate. This varies from bank to bank. It is noted that the interest rate is mostly decided on the borrower’s profile.
Some people think that traditional jewelry can not be pledged to get a gold loan. The government has already announced what kind of gold items can be pledged. It only mentions the word jewelry. Banks consider that the purity of the gold should be at least 18 karats.
How to decide the best place to get a gold loan?
If any, are you confused about which gold loan option we should go for in these challenging times? Then the gold loan can come to an end your problem and your confusion. Getting the required credit amount against your gold jewelry and coins by opting for the gold loan could be a wise decision. Banks always provide financial institutions, and the only gold loan is a kind of very secured loan that can opt for at affordable interest rates. Not only interest rates, but multiple reasons make a gold loan a perfect choice for a borrower.
Factors to be considered
Interest rate
EMI
CIBIL score
Tenure of gold loan
Pledging requirements
Like the first thing is that you can use your gold sitting at your home to get any sum for your needs and get that precious metal back once the loan repayment tenure is over. The Indian bank gold loan policy is one of the credit facilities extended against gold with workable terms and conditions. If you are a borrowing individual or entity looking to get monetary assistance but cannot decide why you should opt for a gold loan, this article could be perfect for you. Over here, you will get to know all about the reasons which make a gold loan a plausible solution to meet the emergency needs.
Comments