Introduction
Do you spend a lot of your time searching for ways to fund your financial requirements, such as medical emergencies, business expansion, education and wedding expenses, etc.?
Do you need money to finance your needs but not redeem your assets? The best option is to opt for a loan against gold in such cases.
Gold loans are one of the most popular options for loans. This is because of the ease and convenience that these schemes offer. You can get a loan sanctioned against your gold jewellery in a very short time. However, it is essential to select a suitable gold loan scheme for you.
Various gold loan schemes are available in the market, and you need to select the one that suits your needs the best.
Tips for choosing from different types of gold loan schemes
Here are a few tips that will help you select a suitable gold loan scheme:
1. Check the eligibility criteria of the lender
Different gold loan providers have different eligibility criteria; therefore, you must check and compare the eligibility criteria of different lenders.
With Muthoot FinCorp, it is easy to meet the eligibility criteria for the gold loan schemes as it has been formulated keeping the customers’ interests in mind.
With Muthoot FinCorp, a salaried or self-employed professional who is a Resident Indian Citizen between 21 – 65 years can apply for a gold loan.
2. Loan amount granted
Applicants are advised to consider the minimum and maximum gold loan amount granted by the lenders.
Generally, the lenders evaluate the gold articles (i.e., their purity, weight and the current market value) and then decide the loan amount. The loan amount will depend upon the loan to value ratio (LTV).
With Muthoot FinCorp, the maximum gold loan amount that an individual can get is Rs. 50 Lakhs.
3. Compare the interest rates
Interest rate is one of the most critical parts of any loan. It determines how much you will have to pay back in the long run. If interest rates on the gold loan increase, individuals will have to pay higher EMIs and vice versa.
Thus, it is recommended that individuals compare interest rates offered by different lenders and then decide.
Generally, the interest rates on gold loans range between 6.90% to 29% p.a.
With Muthoot FinCorp, you can get a muthoot gold loan with interest rates starting only from 6.9% per annum.
4. Documents requirements
Compared to other loans, the documents required in a gold loan are minimal. However, different lenders may ask for different documents.
So, it is advised that you assess the documents required by a lender to get the best loan.
With Muthoot FinCorp, the documents required are identity proof and address proof. An individual is not required to provide any kind of income proof or credit score.
5. Check the repayment options
If you are availing of a loan against gold, you will have to repay the loan on time. Failure to repay the loan could have severe consequences.
Thus, before opting for a gold loan, it is crucial to consider the repayment options provided by the lenders.
With Muthoot FinCorp, individuals are given the privilege to select from numerous gold loan schemes with varying tenure options. Individuals can also select the repayment option.
6. Other charges
To choose from different types of gold loan schemes, it is also vital to check the other charges levied by the lenders on the gold loan. Lenders may charge processing fees for processing your gold loan application or may charge a foreclosure fee.
With Muthoot FinCorp, you will not be required to pay any foreclosure charges if you repay the entire loan after three months, and the processing fee is also minimal, i.e., Rs. 20 – 0.25% of the total loan amount.
Conclusion
Gold has an important place in one’s life as one is emotionally attached to it. Therefore, choosing a loan against gold is a very vital decision that individuals take to meet their financial requirements.
Taking a gold loan means you will have to pay EMIs to the lender. Failure to pay EMIs could grant the lender the right to sell the gold pledged.
Thus, it is advised that you choose the right plan that suits your requirements and fits your budget.
Make sure that you read the terms and conditions of the gold loan carefully to know all the associated costs and fees.
To know more about the most trusted and reliable gold loan, Muthoot FinCorp’s gold loan, visit our website.
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