Gold Loan Interest Rates 2022: Gold Loan Interest Rates Comparison
Gold loan can be beneficial for an individual to manage financial needs, but having a knowledge about interest rate is important. Read to know about interest rate of gold loan and how to compare interest rate.
Gold loans allow you to avail of funds by pledging their gold as collateral to the lender. The lender determines the gold value against the current price of the gold in the domestic market and offers a loan amount equivalent to a certain percentage of the gold value. The proposed gold loan to the borrower includes an interest rate, which the borrower is liable to repay along with the principal amount over the loan tenure.
However, the rates of gold in the domestic and international markets keep changing daily based on numerous factors, such as the price of the US dollar or the overall demand and supply factors. The change in the price of gold also results in fluctuating interest rates for various gold loans offered by lenders such as banks and NBFCs.If you are looking to take a gold loan in 2022, you must compare and analyse the gold loan interest rates across different lenders.
Gold Loan Interest Rates Comparison
When taking a gold loan, you must compare lenders based on the interest rate they charge for their gold loan. Before comparing gold interest rates, you should understand the factors that affect India's gold loan interest rates.• Demand and Supply:
Demand and supply highly influence the price of gold in the domestic market and, ultimately, the interest rates on gold loans. If the demand for gold is higher than the supply, the price of gold increases. On the other hand, if the supply is higher than the demand, the price of gold decreases.• Economic Situation:
As gold is a tradable commodity, investors prefer to buy gold physically or online when the economy is going through a negative phase. Since gold sees higher demand, it can also allow borrowers to attain a gold loan with a lower interest rate.• Loan Tenure:
The higher the loan tenure, the lower the interest rates will be, as you will have more time to repay the gold loan. Hence, you must choose a financial institution with more tenure options while taking a gold loan.Having understood the factors that affect the gold loan interest rates in India, you can compare different gold loan interest rates offered by various lenders. Visit the websites of various financial institutions and choose an ideal gold loan product with an attractive and affordable gold loan interest rate.
FAQs:
Q.1: What is the average interest rate on Gold Loans?
Ans: The average interest rates for gold loans range between 6.48% - 27% p.a.
Q.2: What are the documents required to avail of a Gold Loan?
Ans: Documents required are Aadhar Card, PAN Card, Driving License, Passport, Ration Card, Electricity Bill, etc.
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