Myths Vs Facts About 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 75% (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.
FAQs:
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.
Disclaimer: The information contained in this post is for general information purposes only. IIFL Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness or of the results etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. Given the changing nature of laws, rules and regulations, there may be delays, omissions or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Gold/ Personal/ Business) loan product specifications and information that maybe stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Gold/ Personal/ Business) loan.
