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Tips and Advice Before Taking a Gold Loan:


When a customer pledges gold including jewelry, ornaments e.t.c as warranty for taking a loan, it is known as a gold loan. The bank or lender uses the gold as security against prospective payment default by the customer. The loan amount sanctioned is a certain percentage of the value of the gold that has been guaranteed.

Gold loans are short-term loans and the payment period can range from one month to a few years. If you are in need of money for urgent expenses and expect to be able to pay it back in a short term period, then this type of loan might be a good option for you career development loan.
There are some certain advantages of a gold loans. These are –
Lower interest rate on gold loans that is interest rates on these loans are lower than on personal loans since this is a relatively low-risk loan for lenders as they hold your gold as warranty. 

The interest rate also varies depending on how much you want to borrow to the total value of the gold you have guaranteed. The interest rates are lower when the loan amount is not more than 50-60% of the total value of the gold promised. 
Also the most two other factors are difference between secured and unsecured loan
These loans are some of the quickest loans to be sanctioned as the banks have your gold as security.
Also No income proof required to take this loans. You are not even needed to submit a salary certificate since your gold is held as security by the lender.  

There are some more few Things to keep in mind before deciding on a gold loan those are:
Gold as a valuable thing that has emotional value in India since it is largely in the form of family ornaments.  Providing gold as a security means that you take the risk of losing your family jewelry in case you are unable to pay back the loan. This can cause mental and emotional pressure not just on the borrower but the on entire family. So before you apply, think carefully if you will be able to pay back the loan in full. It is good to have a confirmed track record of making loan repayments so that you are self-confident about your ability to get back your gold.
Quality of lender: There are several NBFCs in the country who offer eye-catching terms for these loans. However, some of them could be could possibly shut down and poorly run without notice leaving you at a loss.  It is very important to search on the various lenders and choose one that has a good reputation.
Quality of gold: Usually, gold of 18K value and above is accepted by lenders. You also need to be above 21 years of age before applying for this type of loan.



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