Mistakes you should not make while getting a Gold Loan

 

A gold loan is a credit facility that is backed by a highly liquid asset. In such a case, the lending organizations (banks and non-banking financial companies) do not ask for the credit report of the borrowing individual or entity. The gold loan application process includes evaluation of the collateral and not the credit history of the borrowers. Gold loans are considered a judicious course of action for those with no or low credit scores. The borrowers do not have to worry if they have not paid attention to their credit score in a long while.

Workable repayment options and swift disbursal of funds have made them a center of attraction for borrowers. Many borrowing individuals or entities are moving towards the gold loan to meet their urgent financial requirements. The Manappuram gold loan policy is available online with feasible terms and conditions. The demand for these advances has amplified radically. Gold prices are rising, and the borrowers are finding it as an excellent opportunity to use the idle gold ornaments and articles kept at their homes to get more funds in a short period. Even though the process is short and sweet, the borrowers tend to miss out on some vital points that can turn into a grave issue later on.

To avoid any misconception or misinterpretation, the borrowers must go through the following hand before applying for a gold loan:

• The borrowing individual or entity must compare the options available in the credit market. The borrowers often skip the part where they need to scan through various policies and understand some relevant terms. Some of them are gold loan per gram rate, interest rate, and other related costs such as processing fee, verification fee, or late payment fee. 
• The details mentioned in the fine print are supposed to be read and are explicitly mentioned for the borrowers. Many individuals and entities omit reading this part which can have crucial details relating to the policy.
• The lending institution provides several repayment options for the borrower. The borrower should go through all the options offered by the lender and select the option which suits their repayment capacity. If this decision is not thought through, it can lead to defaults and ultimately affecting the credit score adversely. 
• All the charges, whether they are material or negligible, must be taken into account by the borrowing individual or entity.
• The borrower should compare the loan-to-value ratios offered by various lenders and then conclude on any particular lending institution.

Any slip should be avoided when it comes to a financial decision. One ill-advised decision can cripple the borrower financially and can have a long-lasting impact on the finances of the individual or entity. The points mentioned and discussed above are distinct factors that have to be considered individually as well as together before finalizing any facility, it is the duty and responsibility of the borrower to investigate and find out the policy that is the most appropriate for the borrowing individual or entity.

Visit for more information: Vacation plan? Pay through a gold loan.