Know About the Gold Loan Interest Rates

 

Before you are applying for a gold loan, it is essential to know about the gold loan interest rates since it varies for banks as well as non-banking institutions. Here are some of the things that you must understand about gold loan interest rates and loans against gold.

Monthly income

One of the best things about the gold loan interest rate is the eligibility is relaxed than the unsecured loans like personal loans. In fact, you will be able to get quick gold loan approval. However, the lenders will need an income source before deciding on the gold loan interest rate. There are many companies that provide flexible EMI payment options. If your income is higher and is stable, the repayment capacity is increased. However, you should not have any financial obligations. Less income will no doubt adversely affect the loan amount as well as the interest rates.

CIBIL score

The CIBIL score shows the creditworthiness and is undoubtedly an essential factor, which is decided by the lenders to know about the interest rate. Only maintaining a healthy credit score shows whether you have good repayment behavior. The more is your credit score, the more chances of getting a low loan against gold.  All you need to do is have an excellent CIBIL score, before you get a gold loan. Even if there are discrepancies in the credit report, it is best to rectify them.

Principal loan amount

The loan amount that you require plays a significant role in deciding the gold loan interest rates. It is essential to understand that the loan amount is entirely dependent on the actual value of the gold ornaments. You will notice that the lenders typically approve it from 60% to 90% on the declared value as a loan. In this way, you will be able to know how to calculate gold loan interest. Choosing a higher loan amount means you will get a high-interest rate. Make sure to check the loan amount and compare it.

Hence, these are some things you should know about the best gold loan and the loan against gold that you can get from banks or other financial institutions.