Gold is an essential component of Indian investment strategy. There’s a lot of cultural meaning attached to gold purchases as well. It’s given as a present, and it’s a must-have during weddings. When circumstances get rough, many of us have a stash of gold in our wallets. Gold loans have become popular because of financial turmoils induced by the pandemic. A gold loan from a bank or other lending institutions like Rupeek is a safe way to ensure that you’ll get your money back when you repay the loan. However, there are a few things you should be aware of before applying for a gold loan.
1) The Loan Amount Is Determined by The Gold’s Value
The worth of gold will determine the amount of money that can be borrowed. This means that higher the gold purity, higher the valuation and loan amount. The gold promised must be between 18 and 24 karats pure to qualify for a loan. All valuable or semi-precious stones and metals in your gold jewelry pledge will be subtracted from the final evaluation. Only the gold in the asset will be taken into account when determining the amount of money you are eligible for in a bank loan.
2) Make Sure It’s A Reputable Lender
Because you’ll be pledging your priceless gold as security, make certain the lender you choose is reputable. Small businesses, such as jewelry stores, may not be subject to the same regulations as larger businesses, which could result in unfavorable terms and circumstances. Additionally, they could be phonies. Rupeek, a reputable financial organization, is the best option also with the most convenient gold loan process. Rupeek, for example, has been hailed as India’s most trustworthy online gold loan firm, and you can rest assured that your precious metals are in good hands.
3) Choosing Between Banks And Non-Bank Financial Institutions
If you want to work with a reliable lender, you have a couple of possibilities. Both banks and non-banking financial companies (NBFCs) like Rupeek offer gold loans. For almost five years, Rupeek has been a registered NBFC with the Reserve Bank of India (RBI). One million+ Indian families are part of our customer base and benefit from our gold-backed finance deals and policies. Despite Rupeek’s quick and hassle-free gold evaluation process, they could be a little more flexible. Not only does it offer cheaper interest rates on Gold Loans, but it also makes the documentation procedure as simple and plain as possible, with clear fees.
4) Rate of Interest
It’s a good idea to shop around for a gold loan and compare the interest rates given by various banks and gold lending companies. On a gold loan, different banks charge varying interest rates. Customers at Rupeek can expect to pay the lowest interest rates in the industry.
5) Loan Repayment Options
Regular EMIs, bullet payments, and partial payments are just a few of the loan repayment options offered to borrowers.
6) Tenure of the Gold Loan
Gold Loans are short-term borrowing options that allow customers to tailor the length of their loans to their specific needs. The length of the contract is usually six months or a year. The length of the Gold Loan is adjustable based on the loan amount.
Conclusions
In India, taking out a gold loan is seen as a sign of serious financial hardship and is regarded as one of the final resorts for borrowers. Doorstep gold loans have been introduced by NBFCs like Rupeek and banks in the last several years, where the borrower’s gold is inspected at their home, assessed, and disbursed within a few hours. Apply for a Gold Loan from Rupeek today to meet your personal or commercial financial needs, such as unforeseen bills, bill payments, or business obligations.
