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Loans offered by gold loan companies provide innumerable benefits to their borrowers. From providing quick, immediate processing to charging minimal additional costs, they allow you to make the most of it in no time. Opting for a gold loan is a really easy process, as it involves signing little to no documents, issuing your gold articles as security and getting the required cash in hand.
Also, the interest rate on the gold loan is comparatively lower than that of a personal loan. This, along with additional benefits, is sure to make it secure and convenient for you to opt for a gold loan.
5 Things You Should Consider While Opting For A Loan From Gold Loan Companies
Along with beaming and mandatory factors like opting for a gold loan with low interest, we have jotted down for you a list of various factors you should keep in mind while opting for a gold loan. So, make sure to consider each of them thoroughly before selecting such a loan.
1.Repayment Options
Most gold loan companies offer four loan repayment options- partial instalments, bullet repayment, pay monthly interest and principal later, and regular EMI option.
The lender will put himself in no chance to lose the secured gold. You should opt for a gold loan only when you are certain to pay back the principal value along with the lowest gold loan interest rate within the assigned tenure.
Once you have paid back the amount borrowed while keeping your pledged gold as security along with the gold loan with low interest, you will get back your gold.
2.Hidden Charges
Apart from the interest rate on the gold loan, you must always remember to discuss the hidden charges like penal fees, processing fees, foreclosure charges and many more before opting for a gold loan.
3.Interest Rate On Gold Loan
You must opt for companies that offer the lowest gold loan interest rate to make the most of it.
Thus, instead of opting for a gold loan from jewellery shops, do the same from banks and NBFCs, as they offer gold loans with low interest.
4.Tenure Of Loans Offered From Gold Loan Companies
The tenure of such loans is short term, ranging from 3 to 12 months. So, the lowest gold loan interest rate is determined according to your choice of tenure.
5.Gold Loans Are Of Versatile Nature
You can issue any kind of gold article, from jewellery and gold coins to pure gold bars. So, the amount you get depends on the gold’s purity. Also, the interest rate on the gold loan is determined based on this.
If you want to opt for a gold loan with loan interest, make sure to check for your gold purity and instead of issuing gold jewellery with precious stones, issue pure gold jewels.
The Bottom Line
If you are looking for gold loans with the lowest gold loan interest rate, make sure to read this article thoroughly. You will be well-informed about the various factors to consider while opting for such a loan.