Money talks! It screams at us when we buy unwanted things. You go to the mall to exchange a t-shirt, and you buy five more clothes, because why not? Saving money has always been a task, especially for the shopaholics. The ones who shop when they’re stressed, sad, or upset. One trip in the field and your credit card loses weight like it’s on a keto. We do save some cash here and there. At times we walk instead of taking an auto-rickshaw. Though small savings do help, significant savings are always better on gloomy month ends.
Let’s settle the fact that gold loans are economical and a great way to get some instant money. Now, we’d see how helpful they are when it comes to saving money! I know that loans are liabilities, and according to bookkeeping and accountancy, they fall under expenses. Just hear me out on this one! The gold loan interest rate is significantly less; they are equivalent to dinner in 3-4 star hotels. The borrower does not have to worry about the dents on their finances. Other than interest rates, many other rates are low and go easy on the pockets.
Various banks have different policies; there are some banks who charge a bundle of other fees along with processing fees. Legal fees, inspection fees, and a lot of additional fees are charged. Like any other Layman, you’re going ask, if there are so many fees, then how do they help with saving money? Even though there are many fees, the individual charge to each one of them is relatively less.
For example, under the City Union Bank gold loan scheme, the loan tenure is of 12 months, that is, an entire year. The loan amount could range from Rs. 5000- 5 lacs, depending on how much gold you pledge. They charge MCLR+4.5% gold per gram interest rate. 4.5 over your loan amount is like drawing one glass of water from an entire bucket. Suppose you add more charges to it, then another half glass. So, you see, in total, you save money instead of spending it.
This saved money can then be used for a better purpose. These century-old myths (including superstition and sexism) had to be turned down. All you need is responsibility before taking a loan. Once you take the gold loan, it becomes your responsibility to pay it off. Bankers know how difficult it is to deal with money, and that’s why the rates are kept low. Only so that they’re affordable to all classes of our society, this especially is applicable in gold loans, considering everyone has some amount of golf on them at all times.
