The facility of borrowing money against gold ornaments is not something that is new in our country. People have been doing this for a long time in emergency situations. It’s just, the banks and NBFCs have made this process of borrowing against gold more coherent, functional, and structured. If you do not know that you can get the money against your gold sitting idle in the locker, this is the right time to know. Many people have this question about the importance of Gold Rate Today India when going for a Gold Loan from any lender.
Well, let us tell you that it is one of the most important factors that decide your gold loan amount. First of all, know that a Gold Loan is a secured loan type as you put the gold ornaments or coins minted by banks to get the money against it. Your loan amount will be decided after assessing the overall gold rate today India and lenders will release the loan amount. With the help of a Gold Loan, the overall process is quite fast, so you can get the loan amount easily. In this article, we will be telling you about the importance of the Gold Rate in the gold loan facility. Keep reading to know more!
Impact of Gold Rate Today India on Loan Amount
The most crucial thing that the gold rate today India will affect is your gold loan amount. Let’s understand in this way. Lenders provide the loan amount of 65% to 90% of the overall price of your gold ornaments. So, if the gold rate is high, the overall price will also be high and vice versa. When the overall price is high, you can get a higher loan amount. This is why it is important to check the current Gold Price before going for a Gold Loan.
So, suppose the overall price of your gold ornaments is INR 10 lakh because of the high gold rate, you can get a loan amount ranging from INR 6.5 lakh to INR 9 lakh. So, you can see how important it is to keep the current Gold Price in mind when you are going for a loan against your gold.
The chance of getting a lower interest rate on your gold loan facility is quite high. The reason: Gold Loan Interest rates range from 11% to 20% per annum and one of the factors that affect it is the loan amount. Other factors are Credit Score, Monthly Income, and the Overall profile of an individual.
How can a Gold Loan Help Customers?
- With the help of a higher gold loan amount due to the high gold rate today India, customers can be stress-free from any worry. In any case of emergency, a Gold loan can come to their rescue.
- Other than higher gold loan amounts, customers can also improve their credit score with a gold loan. Just repay the EMIs on time and your score will improve gradually.
- Several people face difficulty in getting a personal loan due to its strict eligibility criteria. But in the case of a Gold Loan, you will not face this as people with low credit scores can also get this loan. Just provide your legal gold and get the loan amount.
- When going for a Gold Loan, always check the current Gold Price. If they are high, it would be the right time to get a gold loan, and until and unless it is not very urgent, don’t get the loan with low prices.
- With four flexible repayment methods of Bullet Repayment, EMI, Upfront Interest Payment, and Interest Payment at Regular Interval, individuals can choose any according to their choice and easily repay the loan.
- Gold Loan Interest Rates are also quite low as compared to a personal loan and other unsecured loan as we told earlier too. Because of this factor, individuals can easily repay the loan amount.