Before we step into a puddle of gold loans, let’s dive into an ocean of loans. There are different loans; Gold, car, house, personal, etc. Technically, expenses from credit cards are also a type of loan, considering you’ve to give the bank money. Looking at the current economic situation, a smooth cash flow isn’t happening anytime soon, so you might want to pause your credit card expenses until you have ancestral property. You won’t even need a gold loan! Anyway, moving on…
If you’ve been following our articles and blogs, you probably know by now that gold loans are calculated on various factors. The most important of the gold being purity and price. The price of gold is a relatively high current, and the purity is nothing to worry about, considering Indians don’t like a lot of adulteration in gold (at least!)Now, according to the RBI, you can get 75-90% of LTV against your gold. The more gold object you have, the better it is for you to get the right loan amount against it. The gold loan interest rate is hence low. This loan could be the fourth leg in your legged dinner table.
Coming back to other loans, it has always been difficult to avail of other types of loans. With an employment crunch, it is more difficult now. In any such situation, it would be best to play your ace that is gold. It belongs to you! It isn’t going anywhere, and it gives a good fortune against it. Gold loans don’t need many documents and background checks, all you need is the physical feel of the gold, and you’re good to go. With low interests that can be paid off quickly, one gets the best of both worlds. In some banks, the loan taker can give more amount, which can later be rounded off in the next month. Taking a little left from the technicalities, gold ornaments are only worn to show off, with lesser events due to this pandemic, and you don’t have to show off to anyone. So, your gold can be safe with the bank and help you get some extra money to make your ends meet.
Just for a quick example, let’s consider the interest rates of the IDBI bank. The IDBI bank gold loan scheme has a gold loan interest rate of 7.0%. The processing fee is just 1% on the principal amount, which is cheaper than any other loan. If you compare it in Layman’s term, one dinner at a 3/4-star hotel can pay off a month’s interest when it comes to gold loans; that’s how cheap it is! Now that the hotels are shut, and Chicken Tandoori is nothing but a dream, you could pledge off your gold and put that money in the interest of the bank and your financial position!
No comments:
Post a Comment