Top Three mistakes’ people make while applying for a gold loan
Gold loan is one of the easiest and best options available there. Such loans help you get financial aid with no hassle. There are many financial institutions that process gold loans with ease, and Rupeek is amongst the top players serving numerous customers everyday. They are the best dealer of gold loans in India.
A gold loan may seem like a simple way of raising quick money. Whether you need emergency funds for a wedding or holiday tour, you may fall back upon the supremacy of gold. Typically, gold gets preserved in the form of jewellery.
It comes to the rescue when you go through a financial crisis. With NBFCs and banks falling over one another to furnish clients with gold loans, you can monetize your assets. There is no need to sell them in the market. Rupeek highlights three mistakes that people commit when applying for gold loans.
People don’t know much about interest rate calculation.
Gold loan givers often present optically low-interest rates to market their schemes. It gets subjected to some conditions and terms; you may end up paying a higher interest rate. Companies likewise charge jumping interest rates, where the rate of interest leaps over a certain period.
While applying for a gold loan make sure that you go for a constant or fixed interest rate. Be mindful to check how your interest rate gets calculated.
People don’t check the credibility of the creditor.
Rupeek claims that it’s a good habit to check the credibility when applying for a loan. A gold loan is a secured loan. It implies that the loan gets protected by collateral. Collateral remains linked with the lender or creditor till the complete loan amount gets paid off.
Indeed, it is a good way to render security to the creditor. What will happen if the creditor is a fraud? There is a way to ensure the safety of the borrower. It is better to deal with well-established financial institutions like banks and NBFCs. Creditors estimate the value of your gold and according to that they usually fund a loan amount of up to 75% of its total value. Even if you get lucrative interests on a gold loan, it is better not to deal with an unreliable company. Trade with banks with a solid reputation in the market like Rupeek.
People don’t take note of the hidden charges.
It is worth noting that some of the companies hide a lot about the terms and conditions section. Hidden information may include processing fees, penalties on delinquent payment, and foreclosure fees. When applying for a gold loan, it is better to check the hidden piece of information.
People don’t read the terms and conditions carefully. Also, understand about these repayment systems so that you can make an informed and real decision and also choose the required one.
About 95% of people don’t look for the conditions and terms written in small fonts. It includes a couple of clauses related to the gold loan. People would sign the application form without reading the terms and conditions.
Try to avoid this, as it may cause you to pay a higher interest rate. Of course, trustworthy gold loan givers like Rupeek.com tell the customer about gold loan plans. It is better not to turn a blind eye to the conditions related to the gold loan. Creditors use this ratio for risk assessment by using a gold loan calculator, you can also get online access to this calculator.
Contact a reliable institution.