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August 03, 2024
5 Things to Know Before Applying for a Gold Loan
In India, gold holds deep sentimental value, often symbolising hard work, determination, persistence, or inheritance. Gold jewellery is cherished for the love, compassion, and empathy it represents. As an asset, gold serves as a reliable companion during times of difficulty, retaining its value regardless of economic conditions.
Obtaining a gold loan is straightforward. You need to identify a trusted entity, pledge your gold, and receive the desired amount in return.
However, before proceeding, it's crucial to consider the following five factors:
1. What is the Tenure of Gold loan?
The tenure for Gold loans is relatively short when compared to other types of loans. The tenure generally ranges from 6 months to one year. It’s important to note that in case of failure to repay the loan amount, your lender may sell the Gold jewellery that was pledged. Therefore, ensure that you make timely payments to recover your Gold Jewellery.
2. Where to Avail the Gold Loan from?
You have the flexibility to avail of Gold loans from pawn shops, banks and NBFCs. To avoid any risk and ensure that there is safe storage for your Gold assets, we recommend you choose Banks or NBFCs that are regulated by RBI. Every person who pledges their gold assets would have a strong determination to recover the same. Hence, pledging the gold assets in safe hands is essential.
3. Which Gold asset can be pledged?
Any Gold jewellery or ornaments can be pledged. However, the amount of the loan depends upon the purity of the Gold. The minimum purity that lenders expect is 18K. It must be noted that the loan amount will be sanctioned based on the value of Gold, and not based on other precious stones embedded in it.
4. What are the other important considerations?
You must consider the terms and conditions of your Gold loan agreement. Check and compare the interest rates to keep yourself away from the financial stress. Enquire about the payment options available. Ask if there are any additional charges for delayed payment. These considerations bring clarity and help you effectively repay the loan amount.
5. What would the amount of the loan be?
The amount of the loan depends upon the valuation of the Gold asset pledged. Generally, lenders offer up to 75% of the Market value of Gold.
If you are seeking for an instant personal loan or a Gold loan then -
You should consider Nitstone Finserv which provides Quick Approvals, Gold Loans and Instant Personal Loans disbursement within 24 hours and makes your journey hassle-free with endless financial opportunities.
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