When is money not a problem for people? For the middle class and lower class, it is problematic because they don’t have much it, and for the upper class, it is problematic because they have a lot of it and have no idea how to spend it (black money is illegal okay?) Although sometimes, they need extra money other than their income too, so gold loans can be beneficial for them as well. There have been a number of myths attached to gold loans and have been prevailing for a long time.
These myths were due to the lack of awareness amongst people in the past. Now, due to technology, these facts are reducing and gold loans are gaining fame slowly and steadily. More and more people are investing in gold loans and are benefiting well from it.
So, to break more myths, we are going to tell you 5 facts that quite crazy about gold loans. Shall we?
1.Cheap. Cheaper. Gold loans
Gold loans are the cheapest when it comes to gold loan interest rate. Also, the inverse proportionality with the gold rice makes them more attractive. Gold loans can be paid off easily and in many ways. They are carefully made for their consumers and are aptly beneficial for them!
2.High LTV
Gold loans are supposed to have the highest LTV that is the loan-to-value. In fact, just recently, the RBI stated that this ratio should be increased to 90% This tells us that there are a lot of people who are applying for these loans, and hence, the RBI felt the need to take such an important step.
3.Flexible Tenure
Gold loans have a flexible tenure, they range from 3 months to 24 months too. However, a person should pay the loan off within 30 months compulsorily. Some lenders even give an extended tie period to the borrowers as well. The borrowers hence, feel it feasible to take a gold loan over any other loan.
4.Many options to repay
Gold loans give you a lot of options to pay back the loan. There is EMI, bullet payment, online payment, and a lot of other things. Now, there isn’t any need to go to the bank all the time to go to the bank every month. Muthoot Finance Gold Loan have their app too for the same and similarly, other banks do as well.
5.Refinancing Scheme
Have you heard that another bank will pay off your loan for you if you aren’t able to do so? This is possible only in a gold loan! If you are unable to pay off your loan amount, the other bank shall pay it off to the first bank, and you’ve to pay to the second back.
These were some facts about gold loans that we thought you’d like to know. Hope these help you in the future and you grow fonder of gold loans!
Yours Sincerely,
Dialabank!
