Gold vs. Silver
The 5 Differences That Matter Most to Investors
When you’re in urgent need of cash and don’t have any option left other than selling your gold or diamonds, you can avail gold loan. However, it’s important to read the fine print before making any decision and to understand the interest rates and fees that you will pay. The fees vary but it’s important to take the time to investigate so you know what you’re getting yourself into! Now is the time to start researching the pros and cons of gold loan.
- Check lender’s credibility- Are you looking out for gold loan? Then, check the credibility of the lenders before taking the loan. It is advisable to get the loan from a trustworthy lender, who is well-established in the market. They offer the loan on the collateral security of gold. Moreover, they are transparent in their dealings and have a good reputation in the market. Most importantly, they charge reasonable interest rate on the loan and give you sufficient time to repay the amount of money.
Before you apply for a gold loan, you should carefully read the fine print and make sure you’re getting the best deal. There are many reasons why you should get the highest quality gold loan. Not only will you be able to achieve the highest quality loan, but you’ll also get to enjoy perks that are not even offered on the lower quality loans. These include free gifts and additional services that are not available to those who seek out the lower quality services.
- Payment mechanism of digital gold loan- A digital gold loan is usually taken to fulfill some urgent need. You should always take a payment mechanism before taking a loan. The most common methods are cheque or cash. This is important since you must have the money to pay back the loan. Also, you can avoid the hassles of giving gold as a collateral.
However, you can explore the option of giving gold as a collateral if you have an account with the lender. If the lender is a genuine firm, the gold can be classified as a security for the loan. In case of a digital gold loan, make sure that you take the cheque or cash to the lender and not make the payment online. The reason is that you need to make sure that the cheque or cash carries the signature of the authorized signatory of the lender.
- The mechanism for customer relationship management- Yes, gold loan is a boon for those who are going through financial crunches. However, before opting for gold loan, you should check the mechanism for customer relationship management. Loans are taken by many people but there are only few borrowers who repay the amount on time. When you opt for gold loan, you are also required to deposit gold as collateral. In certain cases, you would be allowed to pledge collateral in the form of jewellery. Therefore, you should check the mechanism for customer relationship management for a better user experience.
- Interest rate- It has been seen that many borrowers who take gold loan do not check the rate of interest fixed by the lender. One should check the interest rate before taking gold loan and should take the loan keeping all terms and conditions in mind. If you do not check the terms and conditions, then there are chances that you will have to pay extra amount at the time of paying off the loan. Checking interest rate will help you to know the interest rate fixed by the lender and avoid many problems in future.
- Understanding the gold loan schemes- Taking gold loan is a process of buying gold from the lender against the loan. The gold ornaments to be borrowed are supplied by the lender to the borrower after the receipt of their application. The period of gold loan ranges from a day to 15 days. The borrower can renew the gold loan period for the second, third and fourth time. The amount of gold loan taken is generally 50 grams to 15 gms. It is best to compare different gold loan schemes before deciding on which one to go.