Gold Finance Advice & Tips for Students & Professionals
Many students and professionals pledge gold, including jewellery, ornaments, and coins, as collateral to take a loan. The gold serves as a security to the lender against a borrower’s potential loan default. The lender assesses the pledged gold’s value and sanctions a percentage of its price. While some lenders approve 50%-70% of the gold’s value, Muthoot gold finance is available up to 80% of its price without income proof or credit score.
Students planning for higher studies or professionals looking to expand their business will get a few gold finance advice and tips below:
There are hundreds of lenders offering gold loans in India. Local jewellery shops may also take gold as collateral and lend gold loans. However, this is not a safe route to go. The borrower must compare lenders based on their loan amount, interest rates, repayment terms, and other conditions before pledging their valuable assets. NBFCs registered with the Reserve Bank of India are authorised to offer gold loans at reasonable interest rates. For instance, Muthoot finance interest rate upholds transparency and effectiveness due to the loan’s secured nature.
Keep Emotions Aside:
In India, gold is not just a piece of jewellery. It has hereditary, religious, and cultural significance, too, due to which Indians often connect their emotions with it. Parting ways from their beloved gold, even for a short time, causes undue emotional pressure on the borrowers. Therefore, while applying for a gold loan, it is best to keep emotions aside and make a confident repayment plan to claim the pledged gold back.
Check Gold’s Purity:
The highest gold purity is 24 carats, but sometimes it can be as low as 4 carats. Most lenders do not accept gold less than 18 carats as collateral. Therefore, before bringing any gold assets to pledge against for a gold loan, the borrower must ensure its purity is between 18 and 24 carats. Any computerised testing laboratory can check the gold, check its purity, and give a certificate. The purer the gold is, the lower the Muthoot finance interest rate.
Choose Repayment Option Wisely:
Most lenders have flexible repayment options for gold loans. For instance, when availing of Muthoot gold finance, borrowers can choose different options:
- Pay the interest now and principal later
- give the interest-only and principal at the loan term-end
- Pay both the interest and the principal amount after 12 months
- Repay both through monthly instalments
Gold loan applicants must assess their repayment capacity and choose a repayment option carefully.
Use a Gold Loan EMI Calculator:
Knowing the EMI amount beforehand helps borrowers plan their finances and manage their loan repayment better. A gold loan EMI calculator does just that. The applicant enters the loan amount and gold amount in the calculator. The calculator automatically displays an estimated EMI amount the borrower must pay for a certain period based on the Muthoot finance interest rate.
Students and professionals looking for a gold loan must follow these tips to get the best deal on their gold loan. Muthoot gold finance is the best place that offers maximum value locked in gold and makes repayment as easy for the borrowers as possible.
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