Check Market Gold Loan Rate to Choose Best Offer

 

When the prices are higher, you will receive a higher amount of a loan against your gold ornaments at

better rates of a gold loan. The gold loan rate keeps varying according to market conditions.

To know how to calculate gold loan interest, you should be aware of the accurate rate of interest so that it helps in the better determination of your gold loan rate.

Some of the significant factors are as below:

1. The principal amount of the loan

The amount of loan plays a critical role in determining the rate of interest of your gold loan. The total amount of your loan is dependent on the value of the gold articles/ornaments which have been pledged.

2. Monthly Income

One of the best parts about opting for a gold loan is relaxed eligibility norms compared to unsecured loans like personal loans. It is essential to get approval for a gold loan. However, the lender often inquires about the source of borrowers' income before deciding an interest rate on gold for you.

3. CIBIL score

The creditworthiness is indicated by a CIBIL score, which is one of the primary factors the lender considers before determining the gold loan interest rate. If you have a good credit score, it proves your good repayment behaviour. Moreover, you win the trust of your lender.

Before taking a gold loan from your lender or financial institution, make sure to check different factors such as rate of interest, repayment amount etc. Keeping in mind such small yet significant factors would minimise potential risks. And the entire process of applying for a loan would be facilitated in a more organised way. Make sure to check different rates.