Welcome to FundooMoney, your 24X7 buddy for all your money matters! In India, for generations, people have bought gold to save for the rainy day. However, even if the rainy day comes, you don’t need to sell gold. The smarter option of taking a gold loan is available.
In the past few years, gold loans have become very popular in India with many non banking finance companies (NBFCs) and banks offering them, most of them being on the same day. Loan against gold or gold loans, help you avoid costly credit card debt and costly loans like personal loans since gold loan interest rate is lower. When you are taking a gold loan, you need to be aware about 7 important things. That’s coming up in a short while. • Compared to banks the loan processing is faster with NBFCs. However, banks tend to give higher loan amounts.
• Being a secured loan in nature, even people with bad credit history can avail this loan to repair their credit history.
• Typically, the loan amount ranges between Rs 20,000 to Rs 20 lakh.
• Maximum loan amount is capped at 75% of the assessed value.
• Gold loan is offered only against gold ornaments and coins.
• Gold loans have shorter repayment period of up to a maximum of 3 years.
• Gold loans offer greater repayment flexibility with options like bullet repayment option. Besides, you also have regular EMI repayment and other options to keep servicing only the interest and pay principal at the end of the tenure.
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