Gold being a commodity in high demand in India, almost every household has gold in reasonable quantities with them as this is not something recent. In India, people have been purchasing gold jewelry and ornaments for ages, and it is passed on to young generations from their ancestors. But there is a slight difference now; earlier, people simply used to keep their gold in bank lockers but now that people know of various uses that they can get from gold kept in their bank accounts. For example, gold can be used to get quick funds for any use. Now, people don’t know much about Gold Loans and look for the best deals, but it is difficult for them as they don’t know how to compare various aspects of a gold loan.
So let us discuss the various aspects which can help you to get the best deal in gold loans as given below:-
Gold Loan Interest Rate is the primary factor that convinces applicants to choose gold loans over other loans. Gold loans offer a flexible rate of interest. The interest rate in gold loans ranges between 7%-29% and can vary according to different banks and lenders with whom you apply for the gold loans. And as per the recent changes made by the RBI banks and lenders offer up to 90% of the total value of gold during that time in the market.
Under Gold loans, minimal eligibility criteria are considered, such as age, which should be between 18 years to 70 years. In addition, the borrower’s profession is also an essential criterion for the gold loan, and a credit score is not that important for applying for a gold loan due to it being a secured loan that requires gold as collateral. Therefore, people usually go for good loans when they want to improve their bad credit scores. Processing charges are the fees paid by the borrowers to the lenders or banks for the time between the submission of the loan application and the time of the bank’s approval of the application that was submitted; these are the charges that lenders charge for evaluating and approving the application and verifying the documents with it.
And even if the application gets rejected, the processing charges are not returned. Now, these charges depend on different banks and can vary from different banks and lenders. For example, some banks might not charge a processing fee, whereas others might charge as low as 1%-2%; on the other hand, some others might charge ₹ ten onwards, and others might charge it in the form of a particular percentage on the whole amount of the gold loan. Every loan has a tenure which indicates a kind of expiry date of the gold loan period. Within that tenure, the borrower is liable to repay the whole principal amount and the monthly installments.
Gold loans have a tenure period of 3 months to 3 years. Now, since gold loans are short-term loans, they can be repaid within three months minimum. And one can check their monthly installments through the monthly installments calculator provided on the website of every bank to get to know their monthly installments and check the suitability of repaying their principal amount along with the monthly installments within the stipulated time. These are some of the factors which should be checked, evaluated, compared, and then chosen.
These factors, of course, depend on the banks and lenders you opt to take the gold loan from, so you should first study these factors of various banks and then choose the most suitable one. In this manner, you can get the best deal for gold loans. Now, there are many banks from where you can compare these aspects and them according to your pocket allowance choose the most suitable one among them. some of these banks are Axis bank, SBI bank, Muthoot Gold Loan, Dena bank, etc. they will guide you through the various aspects and requirements that gold loans ask for. Then you can choose the best deal amongst all of them that they provide you for the gold loan.
