Things to Consider Before Applying for Gold Loan

A Gold is one of the most popular metals in India where most families have at least some amount of gold, be it ornaments, coins, or bars. This precious metal is not just a vital inclusion in many special events in one’s life, but also a great investment option. One more reason why people love gold is the opportunity to avail gold loan. 

Here are a few important things you need to consider when applying for it:

Check Interest Rate

One of the most crucial aspects to consider when applying for a gold loan is the interest rate at which you are attaining the loan. Various banks and NBFCs offer gold loans at diverse interest rates; thus, it is vital to choose a bank or lender that can provide loan at affordable interest rates. Before finalising a lender, make sure you compare rates provided by various banks.

Loan Amount

Since a gold loan is a secured type of loan in nature, the loan amount depends on the value of the gold you submit as collateral. The amount of gold loans differs from one bank to another, but you must know that no bank or lender provides 100% of the gold value as the loan amount.

Choose a Credible Lender

As you will be submitting your valuable gold items as collateral, you need to ensure that the lender is credible and trustworthy. Once you repay the loan amount, the lender will return all the gold items to you. However, you should avoid getting a loan from small shops and lenders as they may have some unfavourable terms and conditions.

Though applying for a quite easy gold loan is , the above-mentioned tips will make the process easier for you.