Many of you may not know about gold loans. Let us tell you that in this type of loan scheme, you will be giving your loan as security and getting the loan amount based on your loan grams. Earlier, banks were not giving gold loans but now they have also started giving gold loans. Whether you have gold biscuits or gold jewelry, you can avail loan against it. However, it is not just like, you give your gold and the bank gives you the money. There will also be a few paper formalities. However, the bank will also be verifying the originality and quality of the loan. They will check whether the gold is real or not. Just like that, you also need to check on a few things before you give gold to avail of a loan. Such as the amount of loan, gold pledge rate, the rate of interest, repayment period, and other important factors.
However, we can not deny the fact that a gold loan is one of the easiest and the quickest ways to avail of money at the time of need. As long as you have gold, you can get a gold loan. But you should avail of it after ensuring about the points mentioned above.
You need to take care of the following things while availing of a gold loan:
- The first important thing that you need to consider while getting a gold loan is the amount that you will get against your loan. The amount will vary depending upon the carat of the gold. Such as if your gold is 22 carats then you may get a loan amount equal to 70 or 75 percent of the value of your gold. If the quality of your gold loan is lower than 22 carats then the amount of loan will also decrease accordingly. However, you won’t have to give any proof of your income or income source to get this loan. Furthermore, the price of gold changes daily. Due to this thing, different lenders may calculate the value of gold in different ways such as some lenders may consider daily price to calculate the gold value, whereas the other lenders may take fortnight gold price into account.
- Another important thing that you may have to consider is the rate of interest of the gold loan. The rate of interest may vary depending upon the lenders. There will be a difference between the rate of interest charged by an NBFC and the rate of interest charged by a bank for the gold loan. However, you should go for the gold loan scheme with a lower rate of interest. However, you can also try to bargain the rate of interest. However, other conditions also need to be checked. Such as the repayment period. You need to consider your income while comparing repayment periods of different lenders. You may need more or less repayment period.
These are things that you can consider while planning to avail of a gold loan.