Gold loans are the convenient and straight forward method of raising the funds in emergency situations. Gold is usually secured in the forms of ornaments and jewelry often comes to the rescue whether you need it for wedding expenses, travelling or starting up a new venture. Many of the banks and NBFCs are in competition to give gold loan with great benefits and you can monetize your yellow metal without selling it in the market. However, many a times people get misguided, therefore needed to look after few mistakes to avoid while applying for a gold loan.

MISTAKES TO AVOID WHILE SECURING A GOLD LOAN
– A major setback proved for the borrower is not to check the lender’s credibility. The loan quantum in gold loan is based upon the fraction of gold that you have pledged to the lending institution resulting in the increased risk factor for borrower than the lender. Therefore, you must check the background of the chosen financial entity as you have to place your gold as collateral to the lender till the time you repay the borrowed amount back. Always choose a well-established lending institution that is regulated by RBI for gold loans.

– The other common mistake made by loan seekers is not comparing the lenders in the market. If you want to compare then you can use any of the aggregator websites as many of the lenders would be ready to give the loan amount evaluated on the basis of your gold. When you “Apply For Gold Loan“ never go for the first offer because more you compare, better the offer you may find. Always choose a lender who offers lower interest rate or higher LTV ratio.

– There is another point that needed to be avoided is being negligent of repayment structure. It is always important to understand the structure and zero in on the best that matches your needs. Be sure about the requisite liquidity and how you are going to repay either in the form of EMIs or bullet payments otherwise you could lose your gold ornaments.

– It is important to get into the finer aspects of loan to value calculation while you “Apply For Online Gold Loan“ or apply it offline. Most of the lending institutions rely on the data furnished by their central office to evaluate the gold and to grant you a loan for up to 70% of its market value. Being a smart borrower, you must have a good idea about the market value of your gold. However, quite often these values are flexible.

At the end, you must check upon the fine print of gold loan as yellow metal has more sentimental value and ensures disciplined repayment from the borrower. Do keep in mind the conditions in which your lender can possess the gold and auction it in case of any default or any prepayment charges if you close the loan before the tenure ends. Make sure to discuss all these aspects to have a safer and convenient loan journey.

It is always a mind boggling to decide over, whether to sell the gold or to take a loan against gold when someone needs money and he/she doesn’t know what needs to be done. Many thoughts start juggling throughout minds and questions surround us that should I sell my gold, will I get the right value of my yellow metal or should I apply for a gold loan? Here in this article, we will guide you about that which is the best option- selling your gold or gold loan?

Gold is not just a shiny ornament but it also carries feelings, legacy and emotions than just being an asset. Therefore, most of the people are hesitant about giving away their asset when there is a need of funds. It is always a better option to take a gold loan if someone wants to use it. The main disadvantage of selling gold is that you are only paid for jewelry and you lose the value of make in charges which adds up as significant part while purchasing the same jewelry. The emotional sentiments also counts up as one thinks to start when he/she will be able to buy the gold back while the gold prices are increasing.

Benefits of choosing a gold loan
Gold loan is the secured type of loan, where the lender only look for quality and quantity of your gold rather than your creditworthiness when you “Apply For Gold Loan“ and sanction the amount in your bank account as per your requirement. Once you clear the repayment, you can get your gold ornaments back. This loan will save your time and unnecessary stress of selling your asset which you are not being able to buy soon. Some of the benefits associated with this loan are given below:

Higher Loan Amount: You can get higher loan amount in case of gold loan as it is a secured loan. The maximum limit of gold depends upon the quantity, you pledge against it.

No Need of Credit History: This is the major benefit of availing a gold loan as one need not to have a credit history. Even if you have a low or zero credit score, you shall be granted with loan. If you default on repayments, then lender can recover the outstanding money by selling your gold.

Nominal documentation: One only needs to provide the KYC documents either you “Apply For Online Gold Loan“ or offline. With nominal paperwork, loan amount is sanctioned quickly within a short period of time. Gold is an over the counter product, just pledge your gold ornaments with lender and walk out with cash.

You can take a gold loan by paying very less interest rates and your precious metal will also be in safe custody. Therefore, if one needs to fulfill their requirements or to fund any emergencies, then taking a gold loan is better option than selling your gold. The loan processing is very easy and will be completed in less time.

Nowadays there are various conditions that must be satisfied for getting a loan sanctioned from a lending institution such as creditworthiness, financial status and so on. All these factors are used to evaluate the borrower’s ability to repay the loan. A regular source of income is the major deciding factor for lenders to approve the loan application. However, with such strict guidelines, it is possible for individuals who are unemployed to secure the funds through gold loan. Therefore, gold loan is perfect way to access funds by unemployed people as it just need source of income either you are unemployed and gold ornaments that needed to be pledged as collateral.

A yellow metal can fetch higher amounts of cash during financial emergencies. To get a gold loan sanctioned, all you need to have gold because it is not affected by low credit score, employment as it is secured by collateral. The quantum sanctioned as loan is basically a percentage of the total gold’s market value and repayment is done via monthly installments. These features attract the loan seekers to “Apply For Gold Loan“ as it does not have any restrictions on usage. Many of the lending institutions help to get a gold loan fast. There are lots of features provided by such companies so have a look on them:

-> It is made available at customer’s doorsteps.
-> The processing of gold loan along with disbursal is completed within few minutes.
-> Most of the financial institutions have digital lending platforms.
-> Interest rates on gold loan are much lower as compared to other secured and unsecured loans.

In recent times, loan seekers are cutting down on offline lending stores because online gold loans are cheaper as it lessens the operational costs to a large extent. The online lending platforms offer low interest rates, zero processing fees, doorstep services, personalized customer support, pickup and return of gold assets. One will be surprised to know the ease of availing “Online Gold Loan“ and it’s just a matter of few clicks to apply for it:

-> Click on the site of bank or NBFC from where you want to request a gold loan.
-> Company professionals will complete the KYC process at your doorstep.
-> The loan quantum is transferred as quickly as it gets approved in the borrower’s bank account.

As mentioned earlier in the article that gold loan can be availed by unemployed people so there are some tips to be followed to increase your chances of getting a gold loan approved:

-> Always maintain a good credit history to instill the confidence of lender in borrower.
-> Providing the genuine collateral is another way to increase your chances of approval.
-> In case of gold loan, the alternate sources of income rather than regular job can boost your chances of securing a loan.

A guarantor can also strengthen the position of loan applicant as the lender get a sort of guarantee that money will be repaid in time.