Some people can make money with anything, and those people are Ambanis (kidding). Gold loans fall under the secured loans category, which means they need security to disburse the loan amount. Gold play the role of security here, it acts as the collateral that a person pledges against the money. Gold loans can be used for anything, one could need it for business expansion, a vacation, a wedding to pay off other loans, or to buy something. The banks don’t ask you the reason for pledging the gold. Firstly, because it is illegal, as it seems like an invasion of privacy. Secondly, because the banks don’t care. (brutal)
In this blog, we’ll see how people manage to save money or earn more money through gold loans. Today is the day when you’d be walking towards your share of billions (hopefully). Before we look into it, let’s set a term for such people. Smart? Smart seems apt for them.
The art of hitting the iron when it is hot!
Smart people know when to hit the hot iron, in our case gold. Gold loan interest rate are low when the prices are high. Smart people pledge their gold ornaments when the prices are scaling to a height. This especially fetches them a good amount of loan followed by lower interests. They might use this money to invest in capital.
Bulls and Bears equation
However off the topic, it might seem, it isn’t. Smart people invest in shares, now that the share market is under the sand, it is easier to buy more shares. Once they’ve bought shares and their value increases, the money could be drawn to buy more gold. That gold can be pledged to take a better loan. This also helps the borrower to maintain a good image and relationship with the bank.
Optimum use of money
It is an unsaid/unwritten rule that the borrower thinks through before taking a loan. S/he knows where and how the amount is to be spent. If not, then the money taken goes in vain (unlike smart). Smart people make perfect use of the money, even if the loan is taken for a wedding, the money is used carefully. Some of it is kept aside and saved for later. This practice ensures a good cash-flow even in scarcity.
Timely repayment
It is very important for loans to pay off timely or else the segments keep accumulating only to exert more pressure in the end. Smart people always keep the gold loan interest amount aside at the beginning of the month. Better organizers prefer to pay off the installment on the 1st of every month itself. This punctuality takes you closer to the release of your gold.
We hope that you are one of those smart people, and if you’re not, then you’d become one after reading this blog. Don’t forget to research more on gold loans, just so you could buy more clarity. In the end, we’d like to advise you to make good financial decisions now, to stay away from the mess later.
Comments