Points to Consider in Choosing The Best Gold Loan Rates

 In the last two years, the ongoing global pandemic has been levying strain on household income. Middle and lower-income families are suffering the most from the significant financial drops. It badly impacts the cash flow in commodities. Medical consumption is growing over time. As a result, the demand for a gold loan has influenced the fiscal graph as many people prefer to select gold loans over personal loans. Here are the key factors that you should know before availing of the best gold loan rates:

Valuation per gram:

You can get only 60 % of the total valuation of your gold from banks, whereas financial institutions and NBFCs provide up to 75 % funding with gold loan benefits when you need it. The borrower should research to decide the right one for them and get the best gold loan rates and services they require. 

The standard interest rate:

Interest depends on the payment mode structure that the customer chooses. If the customer agrees with the jumping rate interest scheme, he will pay a lower interest rate than others at the beginning. After that, it will be calculated according to the NBFC’s terms.

Quality of customer service:

When you are planning to get the best gold loan rates by pledging your gold, you should be aware of the customer care service of that financial institution. Today renowned financial institutions offer customer chat boxes or groups with customer representatives to place your query and get instant assistance based in real-time. The financial lenders also provide reminders on the next interest payment through messages, email, or WhatsApp.  

Fast loan sanction: 

To avoid hassles of documentation, validation, KYC update, valuation, and activities, finance institutions and NBFCs provide new edge technology such as e-documentation, e-KYC, and doorstep valuation that make the process faster and instant sanction of the cash.

Repayment:

Another key consideration to keep in mind is that of repayment options. A customer can avail of many schemes such as bullet payments, EMI, partial payments, and overdraft payments as per their convenience. To get the best gold loan rates, borrowers should check the additional charges that vary from bank to bank.