Gold has always been a popular asset among customers both for saving and investment purposes. Especially in a country like India, we just love gold; be it any form – Ornaments, Coins, or any other form. But do you know that your idle gold can help overcome the financial emergency you are facing? Well, yes with the facility of a Gold Loan from top banks and financial institutions, a customer can get the required loan amount at affordable interest rates. Gold Rate Today India is one of the most crucial things that determines the Gold Loan Amount.
People are getting the money against their gold from so many years. It’s just the overall process has become more easy, convenient and organized because of a definite framework. Also, the interest rates tend to be on a lower side because of your collateral as Gold. A fair percentage of people tend to ignore the importance of Gold Rate Today India and end up getting a lower loan amount as it directly depends on it. We will discuss some of the importance of different aspects related to Gold Rate Today India, Gold Loan EMI Calculator, Repayment method, etc. To know more about it, keep reading!
Method of Deciding the Loan Amount on basis Gold Rate Today India
A lot of people often ask this question that how much loan amount they will be able to get from lender? This is where Gold Rate Today India comes handy. Higher the gold prices, higher will be the gold loan amount and vice versa. But it’s not like you will get 100% loan amount of your overall price. The loan amount ranges from 65% to 90% of the overall gold price and tends to change from one lender to another. Any lender will decide the final loan amount after assessing a few important factors such as Monthly Income, Existing Obligations, etc.
Let’s say the overall price of your gold is INR 8 lakh according to today’s Gold Rate. With this value, your loan amount can be as high as INR 7,20,000 to as low as INR 5,20,000. So, you can see that with help of a Gold Loan, you can get a higher loan amount as compared to other unsecured loans. Other than this feature, affordable interest rates can also be a one to look for. Ranging from 11% to 20% per annum, the final rate can be different from one individual to another depending on several factors. If you are someone who has good credit score, which is considered to be 750 or above, interest rates can be lower as compared to people who have a poor score (below 650).
Prominent Features of Gold Loan that you should Know
- As we mentioned the importance of Gold Rate today India that how loan amount depends on it. So, you should always check the current Gold prices before going for a Gold Loan. It would be wise to go for a loan when the prices are high and instead of selling your ornaments, opt for a loan.
- Your beloved Gold will be kept safely in the valuts of the bank and as soon as you repay the total outstanding balance, you will get back your gold. Also, there is no limitation of the number of how many times you can opt for a Gold Loan.
- As compared to other loans, the eligibility criteria is pretty convenient. Lenders do not check the credit score of an applicant. This is one of the reasons of its popularity among customers.
- Coming to the flexible repayment options, Gold Loan offers several repayment methods. These methods are EMI Method, Upfront Interest Payment, Interest Payout at regular intervals like Monthly/ Quarterly/ Semi-yearly, and Bullet Repayment methods.
- Individuals who have a low credit score can also improve their credit scores by making the timely repayments.