Vacation plan? Pay through a gold loan.

We all have that one place where we have our heart set on and we want to go there with our family and friends. Although planning a vacation is not as easy as it sounds. There travelling costs, hotel rent, food costs and last but not the least hefty vacation shopping. 

All of these expenses need to be kept in mind while planning a vacation and it is not always as easy to take care of such big expenses.

Your kids or significant other or you yourself must have such plans and a lot of times you didn’t go through with those plans due to financial problems. You give up on your dream of having a luxury vacation to your desired place. But keep in mind that you don't have to do this and you can manage finances with having at least a little bit of help from gold loans. Remember money is of no use if you don’t use it to complete your wishes.

We have a tradition of buying gold as investment here in India. All families at least have some amount of gold. We often forget that we can make use of that gold without selling it by just availing a gold loan. 

We all are skeptical while taking loans may it be of any kind and rightly cause that feeling makes us do research and find the right kind of loan suitable for our financial needs. Nearly all banks provide gold loans but we need to find the bank which is right for us which disburses the loan when we want them and starts the payback period when we are financially ready to do so. 

Paying close attention to the interest rates just 1% of difference can add up to you paying back your loan in months or years. Processing fees and valuation charges are also something to look into. If they are charging processing fees more than 1% of your loan amount then you are way better looking elsewhere for a gold loan.

The aforementioned fees are very less in some banks as less as 300-500 rs. It is always a great idea to not waste your precious vacation money on processing fees. These fees are taken away from you from the disbursed amount or added to the payback amount. You can also request the bank and pay the fees upfront if you wish to do so.

Also while taking the loans to ask about gold insurance with just a tiny bit of added fees you can have a worry less vacation with your family or friends. Your gold will stay secure in a bank locker as it usually is for a lot of people for security reasons. This gold will be returned to you in the same condition as you gave it to the lender.

If you have diamonds or any other precious stones in your jewels then its value will not be added for the gold loan remember its called gold loan and not a diamond loan. If you have jewellery which is purely made out of gold it is a good idea to take the loan on that jewellery rather than risking your diamonds.

The gold needs to be of at least 18-carat purity to be eligible for a gold loan to get approved. Less purity than that will not get your loan approved.

Some banks often provide benefits to their customers. Having your salary account with the bank also can be an added advantage. Check the guidelines with that bank and act accordingly. Some banks also tend to have special schemes for public sector employees, pensioners, doctors which can lead to having you more loans or lower interest rates. Check all the schemes like HDFC Gold loans that the lender has to offer and choose the right one for you.

Don’t forget to have fun on your vacation and don’t be burdened just because you took a loan for it. A loan can be paid with monthly instalments and often saves you from upfront expenses.

Must read:- Why finance market include Gold Loan