by Are you looking to avail of a loan? If yes, give gold loans a thought, as they are one of the safest, secure and reliable borrowing options. This is because of their secured nature that involves collateral, which is gold itself.
You can opt for a gold loan by keeping gold as a mortgage with the respective financial institution to guarantee your loan amount. They are easy to get, and the process is relatively more straightforward than any other loan.
What is a gold loan?
It is a collateralized loan that allows you to keep gold as your asset while borrowing. The lender sees these loans as more reliable because of the involvement of a mortgaged item, making it a safe and secured loan.
In this kind of loan, the borrower guarantees their gold as security, and you can retrieve your gold once you have paid back your monthly instalments. It offers a perfect solution to meet your urgent financial needs.
What is a gold loan calculator?
A gold loan calculator is an internet-based instrument that enables potential borrowers to comprehend their financial obligations more clearly.
These calculators comprise various sections where users input details like the net weight of their gold items and desired loan amount, helping them ascertain the monthly instalment payments.
Why opt for a gold loan?
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No credit score
There is no requirement of a good credit score to avail of a loan from a gold loan app as it is a secured loan, and you can keep your gold items mortgaged in exchange for money, with the option of getting it back once you repay the entire amount.
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Easy and simple to avail
It needs minimum documentation as the lenders are satisfied with gold as mortgaged asset and do not ask for a complex application procedure; they are happy to lend and approve the loan amount.
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Relatively liquid
They are relatively more liquid than all the other loans, so if you require instant cash and are looking for a loan, this is the right choice. You can borrow from the best gold loan app after comparison.
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Low-interest rate
Gold loan interest rates are lower because of the nature of the given loan. This is because there is no risk involved, and the only risk is borne by the borrower, which would be losing the gold pledged, so lenders have no reason to charge a high interest rate.
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Regulation and valuation
These loans are regulated by government entities that have implemented strict rules and regulations to protect the rights of borrowers and lenders.
How to plan your gold loan wisely with the help of an online calculator?
To wisely plan for your gold loan using a gold loan calculator, you should:
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Assess Repayment Capacity
Test different loan amounts and durations in the calculator to understand their impact on EMIs and total repayment. Ensure the EMI aligns comfortably with your monthly budget.
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Utilize an Online Calculator
Locate a trustworthy online gold loan calculator offered by banks or financial websites. Input details such as the loan amount, duration, and interest rate to compute the EMI (Equated Monthly Installment), total interest, and overall repayment sum.
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Examine Prepayment Options
Some calculators permit extra payments or prepayments. Experiment with these to see how they affect the total interest and loan tenure.
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Compare Loan Offers
Use the calculator to compare loan options from various lenders, considering not only EMIs but also processing fees, prepayment charges, and other conditions.
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Review the Terms Carefully
Ensure a thorough understanding of all terms, such as penalties for late payments, loan renewal terms, and any concealed expenses.
Which is the best gold loan app?
I wanted an instant secured loan for an untoward emergency, and upon comparing, I found out that a gold loan is the best way to go about it. My husband suggested that I borrow from the Bajaj Finserv app as it is highly recommended and reliable, too. It has a commendable user interface and is very easy to understand.
Conclusion
The evolution of borrowing and lending has seen it all, with gold being constant from old to modern times. Gold loan has been of great help and a way out to people with immediate financial needs, especially in unprecedented times.
