Friday, September 4, 2020

Choose the right gold loan for you

We love choices, we need choices in everything, and that too all the time. We literally take time in choosing the color of our scrubbing brushes. We aren’t indecisive, we just don’t want to make the wrong choice and then regret it later. If we take so much time in choosing so many unimportant things, don’t you think we should take at least an entire day in choosing a suitable gold loan? I think an entire day is necessary after reducing the procrastination hours. 

There are a few things that you need to know before you choose a gold loan for you. Like a good teacher, we’re going to teach you the basics and then you can stand on your financial feet (and remember us then?)

  • Gold per Gram Rate 

Gold is measured in kilos (kg) and grams (gms) and then there is lump-sum price fluctuation. Always remember to note the gold loan per gram rate before you go to take a loan. It is advisable to take a gold loan when this noble metal is at the peak of its price.

  • LTV (Loan-To-Value)

However difficult this might sound, it basically means how much amount of a loan you will get against the value of your commodity. The Lakshmi Vilas bank gold loan scheme offers 60% of the value of 22-carat gold jewelry for non-agricultural purposes. 

  • Gold loan Interest Rate 

The gold loan interest rate in the Lakshmi Vilas bank is around 8% including all the charges. Usually, according to the RBI, there is a ceiling rate which is 9%, which means that no bank can take their interest rates above it. 

  • Your gold value 

It is very important to get your gold checked and verified by the blacksmith before you pledge it for the loan. The banks surely are fair when they deal with you, but once you get it checked from the blacksmith you have an idea of the approximate loan you can get against your value. In case, you need more money, you can always choose different loan options along with a gold loan. It’ll help you form your budget right. 

  • Tenure of the loan 

Do see the tenure of the gold loan before borrowing money. It could be up to 12 months or more. There are chances that you might need more time than what is stated or lesser time. Whatever it is, take a look at the tenure and negotiate with the banker about it. That is it, folks! We hope that you loved our lecture and understood it. If you have any doubts or queries, you can always call us and ask. Remember, knowledge is power especially when it comes to money. Hope to see you tomorrow. Until then, Class Dismissed! 


Must read:- How much income is enough for a gold loan


No comments:

Post a Comment