Which is better- Gold Loan with an EMI option or overdraft facility?

Gold loans can be confusing to people, and understandably so. There are a lot of decisions and processes which go into obtaining a loan which many individuals do not reflect upon. The process is less time-consuming than others but there still is a lot that goes into selecting a perfect loan for you. For example, you have to choose a lending bank or financial institution for which you need adequate research about their schemes. For example, the Axis Bank gold loan is considered in the top banks for gold loans; you might not know this unless one has conducted adequate research.

There are still other things one needs to consider. For one, you need to know what type of repayment option will you choose? While deciding upon that, one should keep their income in mind and choose the method and tenure accordingly. You can use the gold loan EMI calculator to calculate the EMI installment you would be needing to pay for a certain amount so that you can plan your loan and expenses around it. 

Also, EMI may not be the only option for you! Gold loans are available with an EMI option as well as an Overdraft facility. An EMI is suitable for a long term loan. If you are not in a hurry to pay off and close tabs on your loan and need some extra time to pay off your loan in smaller installments, you can opt for the EMI option. However, an overdraft option is ideal if someone is looking for a short term loan. A lot of people take out short term loans, especially in businesses to pay off immediate debts till their next payment arrives, and then they can immediately pay off their loan amount.

This helps the loan owner as in an overdraft facility, the interest is even lesser. A gold loan with an overdraft gives the benefit for your day in and day out, 24/7 access to credit, charges interest just on the sum utilized while giving you the choice to pull out more if necessary, and furthermore gives you the comfort of utilizing your bank cards. So, as a customer and borrower, you must keep in mind all these very important aspects of loaning which people may or may not mention as often while talking about the various processes of taking out loans. Gold loans are very helpful for people and have been saving lives and improving them as well given, they are used and consumed properly by the borrower.

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