Do you know that your idle gold can get you the required loan amount in emergency times? Well, if the answer is a no then you must know that A Gold Loan can get you the required sum of money at affordable interest rates. Several lenders provide the Gold Loan amount according to the Gold Rate Today India. When we say lenders, there are Banks and Non-banking Financial Companies (NBFCs) that provide a Gold Loan to customers with minimal documentation.
Gold has always been a useful asset among people as it can get the money in a time of need. The only difference is the lenders of today have organized the whole lending process. For example, your gold will be kept safe in the bank vaults and it will be returned to you as soon as you repay the loan. In this article, we will cover the importance of Gold Rate Today India when it comes to a Gold Loan and other aspects of it such as EMI Calculator, Repayment Methods, etc. So, if you are someone who has gold ornaments at your disposal and looking to raise money, this article will surely help you understand the importance of it. So, keep reading.
How do Lenders decide the Gold Loan Amount?
You must be thinking about the process by which lenders decide on a final loan amount. We’ll, your loan amount simply depends on the Gold Rate Today India. So, the higher the gold prices, the higher the loan amount against your gold. Usually, lenders provide a loan amount ranging from 65% to 90% of the overall gold Price. Let’s understand with an example. Let’s say the overall price of your Gold is INR 10 lakh, lenders can provide you the loan amount of INR 6.5 lakh to INR 9 lakh. You need to remember that the final loan amount will be decided by the lender after checking various factors.
The best thing about a Gold Loan is the affordable interest rates. The reason: Gold Loans are secured loans as customers pledge their gold ornaments against the loan amount. Due to lower interest rates, the EMI amount is also lower and customers can also pay the loan without any trouble. Usually, Gold Loan Interest Rates range from 11% to 20% per annum on average. The final rate of interest will depend on several factors such as Loan Amount, overall profile, monthly income, and Credit Score. Lenders are more likely to provide a higher loan amount with low-interest rates to people with high credit scores.
What are Some Prominent Features of Gold Loan?
We are showing some of the important features of the Gold Loan. Please have a look.
- As we said Gold Rate Today India determines the Gold Loan Amount. And considering the prices of Gold currently, customers can get a higher gold loan amount. In case of emergency, it would be wise to get a loan instead of selling your gold as you will lose possession of your worthy ornaments. That’s why a Loan would be better.
- Due to its secured nature, the eligibility norms of Gold Loan are pretty lenient. People with low credit scores can also opt for a Gold Loan as the only thing that you need to have a loan is the legal gold ornaments.
- Gold Loan can also help improve Credit scores of individuals if you pay your EMIs on time.
- When you submit the gold, lenders evaluate the price of your gold and then decide the final loan amount. It can differ from one lender to another.
- The best thing about the Gold Loan is its flexible repayment options by which an individual can easily repay the loan. These methods are Bullet Repayment Method, EMI Method, Upfront Interest Payment, and Interest Payment at Regular Interval.
- If you are looking to opt for a Gold Loan, always check the Gold Rate Today India before choosing the suitable option.