Everything you've ever wanted to know about gold loans

Gold loans are in demand due to the severe hit of the Novel Corona-virus. They are secured loans and hence are preferred by the customers who have gold ornaments to pledge as collateral against money. The gold loan application is easy and quick if you know about them in detail. 

Every household in India own gold, in our ethnic culture, gold is the most appropriate and auspicious gift one could give on any/every occasion. Even though the gold ornaments have sentiments attached to them, people have become practical enough to pledge them against money if necessary. In recent years, gold loans have become a huge demand. Taking a look at the market, several banks introduced various schemes for gold loans. Muthoot gold loan, ICICI bank gold loan, IDBI Bank gold loan, Kerala Gramin bank gold loan, UCO bank gold loans are just a few fishes amongst the marine. 

Gold loans are subjected to fraud as well, the above banks being reliable and famous don't indulge in forgery. Though there are small scale banks that loot people and take their gold in the name of the loan. One needs to be aware of such banks, once the yellow metal goes, it takes double the effort to earn it back! In this article, we'll tell you everything you need to know about gold loans! (Thank us in the comments section) 

• Why are gold loans cheap? 

Gold loans depend on two factors, the purity of the gold and the gold prices. If the purity of your gold is above 18-carat then the bank shall accept it. The second factor is gold prices, all of us know that gold prices keep fluctuating every day (not like some gangster does it) but it happens. If the gold prices are high, the gold loan interests will be less. If they are the gold prices are low then the gold loan interests will be high. The processing fees and other extra fees are cheap too, hence the summation of all the fees makes gold loans altogether cheap. This has been explained in detail, in one of our articles too.

• Convenience at its best  

Surprisingly, gold loans have several schemes and options to browse through. One can apply physically and online for a gold loan. Similarly, one can even pay their loans in various ways. This makes it a consumer-friendly scheme and totally in trend. The tenure of gold loans ranges from 3 months to 24 months. However, one has to pay off the loan in 30 months. 

• Too valuable to be true 

The pandemic has absorbed every one’s wealth, unemployment is increasing and GDP has stooped too low. In this case, gold loans are seen as a ray of hope, considering the demand RBI has done some changes in the gold loan schemes. In gold loans, there is something called LTV (loan-to-value) percentage. This percentage determines how much loan one deserves against the value of their gold. RBI just recently has increased this percentage from 75 to 90. Earlier one could get 75% of the value but now one can get 90% of the value. This step is beneficial in both ways, banks have seen an increase in their customers and customers are happy because they have better scope for the money that they deserve. 

• Exciting schemes 

How great would it be if another bank paid your loan off? Gold loans offer you a similar scheme, under which this can be possible. For example, initially, you took a loan from the Indian Overseas gold loan bank, the loan is of 4000 and you could only pay off 2000. Then, under the gold loan refinancing schemes, you could go to another bank, for example, HDFC gold bank, and pledge the same gold that you did in the previous bank. Now, the HDFC bank will settle your loan with Muthoot bank. And, you have to pay money according to the gold loan interests rate of HDFC bank. 

Conclusion:  Now, you know everything about gold loans and their interest rates. This is the basic information that may slightly differ according to various banks and their schemes. Gold loans are transparent types of loans, they mostly have no hidden charges. Gold loan per gram rate has a direct effect on gold loan interest rates. We hope that this article enlightened you, if you have any more queries related to gold loans or just any other loans feel free to call us and ask for a consultation. 

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Improving CIBIL with Personal Loan

 

You received a call in the morning from your Credit Card issuer to make timely repayments else it will impact your CIBIL negatively. Someone like you also faces the same situation for not paying his EMI ( Equated Monthly instalment) of personal loan which he availed a few years ago and he also fears to hear the same from a Bank telecaller about deterrence of CIBIL Score.

So what does CIBIL do and how it affects your credit history?  CIBIL (Credit Information Bureau India Limited) is a Credit Bureau or Credit Information Company. This company is engaged in maintaining the records of all the credit-related activities of companies as well as individuals including credit cards and loans. This company awards a specific three-digit score to all the borrowers based on their profile and this score ranges from 600 to 900 and commonly called CIBIL Score. 

In the Financial world, we can define the CIBIL Score as a consumer's credit score. It is a 3-digit numeric summary of a consumer's credit history and a reflection of the person's credit profile. 

Means a bad CIBIL Score will provide you with least chance to get debt or a next credit card from any financial institution. So knowing the fact that you are facing financial difficulties and you won't be able to make timely repayments of your debt you should take some wise decision a step further to avoid any degradation of CIBIL Score. 

For this, you will need funds to manage your debt along with making expenses for the lifestyle. So how can this be done? Sure, it can be either arranged by taking the help of a friend or by requesting a financial institution to lend us a required amount. Asking for help from your relative will hurt you if he turns down your request for any reason and you won't love to share your bad financial health with anyone also. So the best option will be to Seek a personal loan from a Financial house and use it for paying the other debt which has a risk of devastating your CIBIL Score. 

In case of paying a debt of a personal loan, you can use refinancing where you need to avail a personal loan at a lower interest rate than the previous loan, by this amount you can pay your previous debt and the new personal loan will ultimately benefit you by calculating your repayments as per new and lower interest rate. That's how your debt will be paid off without denting your CIBIL Score and instead, it will be improved reflecting your better credit profile. 

For paying a Credit Card debt, availing of a personal loan can be the best financial decision of your life because Credit card companies levy high-interest rates, very huge penalties for late-payments and every single day the sum keeps getting expanded leading to a dubious financial burden for a customer. As compared to credit card interest rates the interest rates for personal loans are very less and affordable though. 

Applying for a personal loan is easy as well as very little time taking, once a customer satisfies the eligibility criteria ( terms and conditions predetermined by financial institutions) then all the documentation can be done at his doorsteps by an executive of the bank itself. Eligibility criteria can be checked online.

Here we have brought some key features Jana Small Finance Bank personal loan which will definitely help to get out of any financial burden:

You should have a pan card 

A salary slip for a salaried person 

Proof of Residence 

A strong CIBIL Score - 750 and above 

Age :  21- 60 ( at loan maturity) 

Lower interest rate: 9.99% - 18.00%

Lowest EMI per lakh - Rs 2148 

Tenure: 12 -60 months 

Processing fee: 2.50% ( minimum Rs 1000) 

Repayment Charges: Allowed after 12 Months (2 – 4 %)

Part-payment Charges: Allowed after 12 Months (2 – 4 %)

Minimum loan amount: Rs 50,000

Maximum loan amount: Rs 75 lakh 

For more details please visit us: Re-applying for a personal loan

Best Gold Loan Tips You'll Read This Year

 

We are humans, and humans are supposed to compete. We always look for tips to help us through. There are tips for almost everything. How to wake up early, to, how to sleep early? How to make your face glow, to, how to become fit? We bring to you some tips to manage your finances and help you in these tough times. The Covid-19 impact has blown economies to the ground a lot of economies are struggling. Households do not have a cash flow anymore hence the struggle for basic income is high. 

Below are some great tips that you will read and might give you some financial relief.

   1.Choose a good scheme 

Choosing a scheme that is suitable for you is very important. There are different situations when one could feel the need of taking a gold loan or any loan for that matter.  It is very important to choose a scheme that fits your situation. At times you need money for quick use, and you know that later you're going to receive a hefty amount. In this case, you can choose to pay your loan off through bullet payments. At times, your payments are going to take time in this case you use EMI options. 

   2.Know your gold value 

If you don't know your gold value then you are going to be looted by anyone who lacks a kind heart. Gold above 18 carats can fetch you a good loan amount, and gold that is of 22 carats is the best for loans. You should know the gold loan per gram rate of that particular day for you to get a nice loan amount. Remember, if the gold rates are high, then the gold loan interests shall be lesser. This is an important factor when it comes to gold loans. 

   3.Don't go all in! 

Never pledge all your gold in one shot, keep some at home too. Pledging all your gold can fetch you a lot of money but, if you're unable to pay off the gold loan interest rate then you're going to lose all your gold in just one go. Besides, a lot of gold can increase the number of gold loan interests. If you have some gold at your house, then that gold can be pledged later, and the loan money can be used to pay off the previous gold loans. 

These were a few tips that we thought could be helpful for you when it came to gold loans. Other than this, it is very important to manage your expenses wisely, this will help you to pay your loans easily and deliver you from your financial stress. 

Also Read:- Gold Loan For Defaulter