Loans are resorted to when there is no cash at the time of need. There are many types of loans, but today we are talking about gold loans. People who need cash in an emergency can take a gold loan. This loan does not require much paperwork. Gold loans are a better option for those struggling with cash crunch. Such a loan provides immediate relief to small business owners temporarily.
How to get a gold loan
Tax and investment expert Balwant Jain says, “You can take loans from banks or NBFCs. While the bank can offer a better interest rate, NBFCs can lend in higher amounts. Before taking a loan, check three-four places where you can get a loan at low interest, it will benefit you. However, an important difference in these is that NBFCs mainly give loans in exchange for gold, they can give loans quickly and immediately. Gold loans can be availed online through any bank’s website and mobile app.
Who is better than gold loan or personal loan?
Balwant Jain says, “If money is needed in an emergency, then gold loan is better than taking a personal loan. There is also a possibility of default after taking a loan, so in such a situation, what action the lender can take, it should be taken care of. Due to the security in gold loans, it is available at a lower rate of interest. Lenders accept a minimum of 18 carat purity. Many people do not accept coins above 50 grams.
How will the repayment be
There are many options for repayment, it depends on what you choose. If you are not able to repay the loan on time, the lender has the right to sell your gold.
Jain says, “Check about prepayments before taking a gold loan. The bank allows you to prepayment and once you have more money collected and you want to repay the loan, then it should be seen what is its charge. You can pay in EMI, or only pay interest during the loan term and finally a lump sum principal payment.