Connect with us

Business

Merits And Demerits: Know All About Gold Loan

Gold Loan

Imagine this. You need funds urgently. But your savings fail you and so do your friends and family. Worst still, your credit card is maxed out. The only way out for you can be the gold lying idle in your safes. No, you don’t need to part with it for good but put it as collateral for a loan.

The loan acquired against the security of gold is known as a gold loan. The gold loan comes with a host of benefits, making it the most popular loaning option in India. Here are a few of them.

Retain your gold:

You might have inherited gold jewelry from your family or bought it to mark an auspicious occasion. In either case, you are emotionally attached to it. The idea of disposing of such a valued inheritance and a keepsake might be hard on you. But don’t worry. With an online gold loan, you can raise funds to meet urgent requirements and still retain your gold. Just pay the principal and applicable interest as per the schedule and reclaim your gold upon loan term expiry.

Low-interest rates:

A loan is as good as its overall cost of borrowing. Here too, Muthoot fincorp’s gold loan online fares better than most loan types. The loan against gold is secured, as you get it against the security of gold. The lenders don’t have much at stake even if you default. They’ll simply auction your pledged yellow metal to recover the amount. Therefore, you can expect as low as 13% lending rates across loans against gold, provided you prefer the right lender.

Low miscellany expenses:

Processing fees, prepayment charges, valuation fees, penalties, and other hidden charges are also a contributor to your cost of borrowing besides interest rates. With the right lender, you can skip these expenses outright or reduce them considerably. Muthoot Fincorp charges just 0.25% of the sanctioned loan as processing fee, which is perhaps lowest in the industry. Plus, valuation fees are modest while no prepayment charges apply with Muthoot fincorp’s gold loan online. The NBFC even rewards you with cashback on regular on-time payments.

Trouble-free loaning:

Put to past the hassles that loaning is otherwise associated with. The gold loan is easily gettable from banks and NBFCs with minimal documentation and easy eligibility requirements. For eligibility, you need to be an Indian citizen, aged between 18 and 65 years, salaried or self-employed. You can apply online, walk into the lender’s branch office or call their customer service. The processes are even simpler and quicker with an NBFC vis-à-vis a bank.

Personalized repayments:

The online gold loan allows for easy and customized repayment schedules. You can repay the loan within 7 days to 60 months, depending on your repayment capacity and the lender’s tenor policy. Muthoot Fincorp even accepts payments on a daily, weekly and monthly basis, should you need variable payment options. Plus, there’s an option to repay the principal in one lump sum when the term ends. For the interest component, you can pay it easy monthly installments.

Secure storage:

Any reliable lender is mindful of what the pledged gold means to you. So, they use security measures like strong vaults with 24/7/365 electronic and human surveillance to safeguard it for the entire gold loan term. Lenders like Muthoot Fincorp even insure your pledged gold. In case the gold is lost in a robbery, you’ll be paid the equivalent of the gold’s existing market price.

No-strings-attached:

The house loan is earmarked for house purchases while you can only purchase a car with a car loan. On the contrary, Muthoot fincorp’s gold loan online can be used to fund anything, as no end-usage restriction apply. Think business expansion, settling the medical bill, high-end marriage, foreign trip, higher education or any other urgent requirement, the possibilities are simply endless.

Demerits:

Alas, no loan is perfect. Trade-offs are always there. Here’re a few demerits of gold loan:

  • If you default, the lender can sell the gold. In that case, you’ll lose your cherished keepsake at a fraction of its actual market prices.
  • The Loan To Value (LTV) ratio in an online gold loan is up to 65%. That means your gold worth INR 10 lakhs will fetch you just 6.5 lakhs in the loan.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published.

Recent Posts

Business1 day ago

Why Is Quantity Surveying Essential in Construction Industry

Quantity surveying is an essential part of the Australian construction industry. It is the process of calculating and estimating the...

Home Improvement3 days ago

How to Maintain Upholstered Furniture

No matter if you have pets or kids, maintaining your upholstered furniture is quite a challenge. Even though vacuuming it...

Business1 week ago

How Do I Find a Good Bubble.io Developer?

Finding a good bubble developer to help build your app or digital product can seem challenging. How can you choose...

Home Improvement1 week ago

When is a right time for home repairs?

Summer is a popular time for a renovation around the globe. While it is true that bright days and warm...

Top Alteryx Competitors Top Alteryx Competitors
Tech3 weeks ago

Top 15 Alteryx Competitors

The world has seen a tremendous rise in startups and new incorporations in the business world. Companies have great potential...

Lifestyle1 month ago

Latest Wedding Trends for 2023

If you’re planning on getting married this year, chances are you’re probably overwhelmed and confused when it comes to wedding...

Lifestyle1 month ago

Tips To Make The Most Of Your City Break In London!

London is one of the best cities in the world, known for its quintessentially British culture, great nightlife, fantastic museums...

General1 month ago

The Ultimate Guide To Packing For A Trip To London

London is one of the best cities in the world, known for it’s rich history, quintessentially British culture, the best...

Tech2 months ago

Top 15 Web Development IDEs

The web development field has seen sustainable growth throughout the years. As technology is advancing, so is the web development...

devops devops
Tech2 months ago

12 Key DevOps Programming Languages to Still Popular in 2022

“DevOps is not a goal, but a never-ending process of continual improvement.” – Jez Humble Delivering the finest of services...

Entertainment2 months ago

Festival Fashion Style Tips For 2022

Summer is well and truly here and with that comes the festival season! From the biggest stars performing on stage...

Green & Energy2 months ago

4 Tips For Making Your Wardrobe More Sustainable

Everyone is trying to make more of an effort to make their wardrobe more sustainable, but often are unsure where...

General3 months ago

7 tips on how to organize a budget-friendly move

If you are planning a move any time soon, you might be worried about all the expenses that wait for...

Metal Roof Colors Metal Roof Colors
Home Improvement3 months ago

Metal Roof Colors: How to Select the Best Color for a New Roof

Choosing the right type of material for your roof is enough of a hassle already that the question of choosing...

Health3 months ago

Simple Ways To Feel More Confident At The Gym

If you are new to the gym, or you haven’t been in a while, sometimes you might not feel completely...

Categories

Archives

Trending