Myths Vs Facts About Gold Loan
Gold loan is easily available and can help an individual at a time of emergency, but before opting for a gold loan you should know enough about it. Read to know in detail the facts and myths about a gold loan.
Before you jump into gold loans, it’s essential to know how they work and whether they are the right funding option. Without this knowledge, you could fall into a trap by signing up for more than you bargained for or taking on an obligation you will have trouble repaying. Here are some of the most common myths about gold loans to better understand your options and make an informed decision.
Myth - The Interest Rates Are High.There are many myths about gold loans and the process of obtaining one of these loans. One of these myths is that the interest rates are high because borrowers have to pay a commission to receive this type of loan when there is no commission with gold loans. Gold loans can be an alternative to a personal loan or home equity line of credit. With this loan, you can borrow up to 90% (depending on your residing state) of the value of your gold jewellery without parting with it.
Myth - There Are Hidden Charges.A common myth about gold loans is that there are hidden charges involved. However, all gold loans have the same monthly repayment plan, regardless of the financial institution you go through. You'll know exactly how much you owe for your loan upfront because it will be specified on your agreement - including all possible fees like delivery, shipping, and credit card processing fees in advance. Therefore, you don't need to worry about extra charges.
Myth - Repaying A Gold Loan Is Difficult.People fear that when they borrow gold for a loan, they will have difficulty repaying it. However, the process is simple if you make all of your payments on time and give them notice before you need to pay off the loan. It is not an issue if you're not borrowing too much money.
Myth - Getting A gold Loan With Bad Credit History Is Impossible.In today's fast-paced society, many people have a checkered credit history. But what happens if you're in the market for gold loan financing and your credit score isn't sufficient? Gold loans can still help. Many lenders will even provide more favourable terms for those with bad credit histories.
Get started today by contacting a lending specialist and specifying appropriate terms for your gold loan financing.
Q.1: What does APR mean?
Ans: APR stands for Annual Percentage Rate and is often used to compare credit card and loan rates. For gold loans, the APR will depend on how much money you borrow, how long you have to repay it, and what the prevailing interest rate is.
Q.2: How much can I borrow through a gold loan?
Ans: The amount you can borrow through a gold loan depends on various factors, such as your income, assets, and whether or not you are applying with another lender simultaneously.