Gold is a symbol of prosperity and security in India while also being the widest-accepted commodity in the world. The world’s economy is run based on how much gold the reserves of Countries have.
Gold has thus become a vital asset; if you require immediate funds, you can take a gold loan as collateral, providing a quick and convenient way to liquidate your assets.
However, before taking a loan, it’s essential to consider certain factors to ensure a safe, secure, and helpful experience.
Things to consider
● Evaluate the Interest Rates and Charges:
Before deciding on the loan institution, checking and comparing interest rates and charges offered by different lenders is vital. It is also equally important to find out if the lender has any processing fees, appraisal charges, or penalties that may be associated with the loan. It’s essential to understand the complete cost structure before proceeding.
● Measure the Loan-to-Value ratio:
A Loan-to-Value ratio is the percentage of the gold’s market value a is willing to lend. For example, even if the selling rate for gold in the market is Rs. 50,000, the lender might only offer you Rs. 40,000 for the same gold. So it is essential to understand the LTV ratio provided by different lenders as it determines the loan amount you can receive against your gold.
● Repayment Options:
Before choosing one, you should consider repayment options like online payments or auto-debit facilities the lender offers, making it easier to manage your loan repayments.
● Safety Measures:
You should check whether your preferred lender follows strict security measures to protect your gold assets. You should look for lenders who offer secure storage facilities and have robust security protocols in place. These vaults employ advanced security systems, including round-the-clock surveillance, restricted access protocols, and insurance coverage.
Choosing the Right Gold Loan App
Conduct thorough research on the available apps and check out their reviews and testimonials to gauge the experience of others in the same boat.
2. Check App Permissions
Review the permissions it requests on your device before installing a loan app. Ensure the app only asks for necessary permissions related to its functionality and doesn’t seek access to unrelated data or features.
3. Loan Calculators
You should use gold loan calculators available online to estimate the loan amount, interest rate, and repayment schedule based on your gold’s value while comparing it with other companies.
Before taking a loan in India, it’s essential to consider several factors, such as interest rates, loan-to-value ratio, repayment options, and security measures. Only by conducting thorough research and comparing different plans should you choose a lender.
My recommendation would be Bajaj Finserv. My best friend wanted to send his daughter to an IIM but could not afford to provide that much money in one go, so he decided to take a gold loan.
He chose Bajaj Finserv as his partner and is very happy. They offered him flexible repayment options, convenient EMI options, and a hassle-free repayment process allowing him to manage this loan effortlessly.