Common mistakes made at the time of Gold loan
Common mistakes made at the time of Gold loan
By now, we know that Gold loans are important because they allow you get the money that you need at the time of emergencies. These loans can be of great help for anyone who needs cash for short periods of time. Having gold as collateral is an important aspect of gold loans. There are many different options of these loans and some lenders will offer different rates depending on their own terms and conditions and preferred risk levels! Some lenders will be trustworthy, but it’s important that you do your research on the lender before committing to a loan with them and consider many other factors as well. Below here, we list some of the common mistakes made by you at the time of Gold loan.
- Purity of the Gold ornament- Gold is a pure metal and as such its purity is critical before engaging in transactions with a lender. One of the most common mistakes is that individuals do not search for the purity of gold and therefore overlook its true value. Generally it should be 18k or above; anything else could make the deal an unsafe one. So if you don’t know much about what makes gold pure and how to check if the purity of your precious metal is up to scratch, then it’s best to ask pertinent questions first and get all your queries answered by experts before committing yourself to any transaction.
- Reliability of the NBFC/ Bank/ Vendor- If you are planning to lend your gold for cash, make sure you only lend to trustworthy borrowers. Otherwise, exchanging your gold with low interest rates might be trickier than it seems. With so many scammers out there that try to trick people into thinking their services are inexpensive and reliable, you have to be careful. Wrong lenders may just want to exploit the fact that they’re dealing with someone who doesn’t really know any better by simply giving them less value compared to gold’s real worth. By choosing private banks over these lenders, chances are your gold can earn more money than most other financial institutions around— providing you get the right kind of lenders.
- LTV calculation- When taking out a gold loan, it’s critical to figure out your LTV (Loan to Value). Based on the assessed value of the gold you’re putting up as collateral, the LTV ratio will decide how much money you may borrow. The LTV ratio is usually calculated using the item’s entire worth (appraised value) by gold loan firms. Multiply the LTV ratio by the total worth of the item to find out how much money you may receive. For instance, if an item’s appraised worth is $1,000 and the LTV ratio is 80%, you may receive up to $800 in cash.
- Gold price in the market– Before finalizing a deal, you should always check the price of gold in the market. You should also be aware of loans that may help you out because there are plenty available to consider. The last step is ensuring that if you’re considering borrowing money, you make sure to get the loan with an interest rate that’s proper by not having it too high or too.
India Gold Trading(IGT) – The Most Suitable gold loan company for Gold Loans
If you need a gold loan right away, India Gold Trading(IGT) is the finest choice. At IGT, we provide the most inexpensive gold loans with the lowest interest rates. Apart from that, IGT offers you the most competitive Gold Loan rate in your region. We have made the approval of gold extremely quick, and there is no need to be concerned about loan repayment. We provide the lowest interest rates on gold loans, with no hidden fees and minimal documentation required. The following are some of our features:
- Costless appraisal
- Liquidity on demand
- Interest rates at their lowest
- Acceptance in a timely manner
- There are no hidden fees.
So, if you’re in desperate need of cash and have gold to trade, don’t be hesitant, consult us today.
Benefits of Gold loan from India Gold trading
- Lowest interest rates– Gold loans are classified as secured loans and they have lower interest rates than personal loans. Gold is used as collateral, banks and lenders have a reduced chance of losing money. Interest rates on gold loans are determined by the loan amount. If the amount is between 55 and 65 percent of the entire worth of the gold, the interest rate will most likely be lower than if the demand value is quite high.
- Quick process- At IGT, Gold loans are one of the quickest loan approvals in India, since even some banks/lenders take a few hours to check papers and issue a loan. Document verification is even quicker and done via E-KYC, making gold loans one of the fastest gold approvals.
- Borrower’s credit history not required– If you have the minimum needed gold and appropriate government identification evidence, such as an Aadhar card, a driver’s license, or a passport, then you are qualified for a gold loan. We, at IGT don’t look for borrower’s history, that means even a person with a bad credit score can avail Gold loan service from IGT. Under the heading of gold loans, there are several pertinent questions. However, gold loans do not take these factors into consideration.
Everyone needs a bit of help from time to time, and that is where we come to your help. That’s why it’s so important when you need an emergency Gold loan you can count on reliable lenders such as IGT. At IGT, we offer options in gold loans with interest rates so low you can rest easy at night knowing you’re getting the most out of your loan. With gold rates on the rise, this is one investment that always pays off!