Things to Know before Availing Gold loans

For various reasons, people might have the need for liquid cash. In such cases, you can avail of the gold loan if you have gold in your possession. But make sure to keep certain things in mind before opting for this loan.

• Valuation of gold

 One should remember when you’re taking a loan against gold, it should be valued first. The purity of the gold will determine how much loan can be sanctioned. If you want to be eligible for the gold loan, make sure it has the purity of 18k or 24k in case you want a loan against your jewelry that consists of other metals and gems, those will be deducted from the loan amount.

• Choose a credible lender.

 You will find various places that offer loans against gold. But it is necessary to find a credible lender for the best gold loan. There are many banks, private and public, as well as NBFCs, who will provide you a loan on gold. It is suggested not to opt for a gold loan from a jewelry shop. In such cases, there tends to be fraud involved. For this reason, make sure to do your research before opting for one.

• Look at the repayment option.

 Different lenders have different repayment methods available for the customers. Make sure you choose the right option where you don’t have to pay a lot of extra money as interest, and the tenor is also short. You should do your calculation properly and choose the correct repayment option. 

It is important to keep these factors in mind when you are opting for a gold loan.

Additional Read: RAISE INSTANT FUND BY AVAILING GOLD LOAN