Common Mistakes to Avoid When Applying for Gold Loan

We believe that people who have already been a part or taken a gold loan for themselves are pretty much aware of how the whole process and procedure is carried out. But for those who wish you apply in future or even for the current holder to get better, we are here to tell you certain things.

We are here again today, to save you from ruining up the gold loans even before you apply because we all know what kind of advantage the gold loans possess to an individual. So we will now tell you what are few of the misconceptions or myths people tend to believe or moreover on what common mistakes people generally make without knowing while applying for the gold loans.

First and foremost, no matter what field you are going to step in, a piece of basic minimum knowledge is a must when anyone is going to start or step into something new. Likewise, the borrowers or the customers, being excited to avail a gold loan for themselves, often delay or forget to do the research and move forward just to directly apply. This can be avoided by doing a small amount of background research. This research is nothing hectic, but it involves more to talk to the already existing users of gold loans or to browse through the web on what lending institutions are good to go for a gold loan. This is nothing but, as we all know several ranges of banks and non-banking financial companies offer the borrowers with the gold loan and as a borrower it is your responsibility to check their authenticity and credibility of the lenders and their institutions. 

For instance, if a borrower wishes to take himself or herself with a gold loan from Canara bank, then he or she should use the background research skill to know what the Canara Bank Gold loan offers the customers with and what the eligibility factors should he or she should be fulfilled to get themselves with a gold loan from that particular bank. Without proper research, the customers or borrower can be at a major loss and all their gold articles can be wasted for no good use. Therefore we urge everyone to go for lending institutions that are reputable and trustworthy on a whole.

Always borrowers just get convinced on whatever the first offers the lenders make or offer them with, that is borrowers should never be easy going. The borrower has every right to demand what is beneficial for him or her. For this purpose, the borrower has to also compare the costs of both patent and latent. With this comparison, a borrower can walk towards the lending institutions with more confidence and can show the lenders his studies and comparison of the cost, so that the bank would offer the borrowers with better and best deals and offer something at lower interest rates.

A borrower should always be careful before opting for a repayment method that the banks offer and see to it that they are fully capable enough to repay accordingly by the chosen scheme. This should be taken care because, if he or she doesn’t pay the lenders bank on time, it will reflect as a bad credit score and the gold that was handed over will be liquidated by the banks and borrowers would be at a complete loss all through the gold loan process. Therefore, as a borrower, everyone must make it a point to complete their payments up to date and right on time and maintain a good credit score.

As a borrower, none should let the calculations part just to the banks or NBFCs alone but should make it a point to have done understood and calculate the rates they are being paid for, so that everyone understands and the procedures remain transparent enough from both the ends without having to cause trouble. And for this purpose, the gold loan EMI calculator is also made available and an easy way for the borrowers to calculate.