So, two topics need to be discussed here, namely, gold trading and gold loan.
So, if we talk about gold trading then, it includes movement of gold not in physical form; it is not handled in or taken possession of in physical form, unlike in gold loan case. They are instead done electronically, and only the profits or losses are reflected in the trading account. There are many ways in which gold can be traded, and futures contracts are the primary way of doing so. It is an agreement to purchase or sell gold at a future date. Buying a gold futures contract does not mean you will have to take possession of the physical commodity.
This is the crux of gold trading, and it can quickly be done as several websites on the internet guide you towards doing gold trading. Thus, one can quickly learn gold trading and take part in it actively. Let us discuss gold loans as they are becoming quite popular due to their benefits to the people who avail themselves. So gold loan comes with a lot of features.
Let us read about these features as below :-
Credit score :- Gold loans do not carry a lot of value for credit score because they are short-term secured loans that require gold as collateral to be deposited. Usually, people avail themselves of gold loans to improve their credit scores. This is because a not very good credit score can be covered in gold loans as collateral is the main thing that matters. And because of that, banks and lenders don’t look up the credit score.
Rate of interest :- Gold loans have a very flexible rate of interest which can range between 7%-29%, and if you have good relations with your bank or lender, you may get some special offers that might make it even more convenient for you. And gold loan amounts are sanctioned only after evaluating the Gold Loan Interest Rate.
Repayment tenure :- The gold loan is a short-term loan. Its repayment tenure is also very short, ranging from 3 months to 3 years, depending on the loan agreement between the borrower and the bank or the moneylender. The tenure should be fixed, keeping in mind the loan’s interest rate so that there is the ease in repaying the monthly installments. The lenders might relax in the tenure if you tend to have good relationships with the bank or lender. So, you should think about all these points before opting for any one bank or lender.
Processing fees :- Many banks and lenders don’t charge any processing fees while other banks and money lenders keep their processing fees very low and transparent; it can be up to 1%-2% of the total amount of the loan, while some might charge a certain percentage of the whole amount of loan. On the other hand, others might charge as low as ₹ ten onwards, s one should first compare, negotiate and then make the decision of selecting the bank or lender offering the most convenient processing charges as even the slightest change in processing fees can make your whole amount of gold loan change significantly.
These are some exciting features that make the customers fall for gold loans whenever they require quick funds :-
Many banks offer gold loans online and offline on their respective websites such as Axis Bank, Dena Bank, Muthoot Finance Gold Loan, HDFC bank, etc. They try to make the process of availing of gold loans much easier, and they assist you regarding various topics so that all the casualties can be prevented and you can easily get the gold loans with minimal requirements being fulfilled.
