When it comes to financial management, making wise and well-informed decisions about borrowing is quite crucial. In the current times, gold loans have emerged as a popular choice due to their convenience, easy accessibility and lucrative gold loan interest rate. However, it is essential to understand the intricacies of borrowing against gold and managing repayments is essential in order to avoid any kind of financial strain.
Around a month back, I had planned to avail this loan, and I was surprised to see the facility where one can easily get this loan without going anywhere. Let’s dive deep into the details.
What is a gold loan? How to avail it easily and what are its benefits?
It is a type of secured loan where potential borrowers pledge their gold ornaments as collateral to borrow money from financial institutions. The amount of loan here is determined based on the value of the gold provided as security.
Keep in mind that if the borrower defaults here, the lender can then easily auction the gold to recover the outstanding amount. Now, if you are planning to avail this facility, sit back and relax as you need not go anywhere. Pick up your internet-enabled smartphone, and with just a few taps, you are more than good to go.
One of the top applications to avail of this facility is Bajaj Finserv. It is super convenient to use, and the interface of this gold loan app is quite simple. Highly recommended!
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Instant Access
One of the topmost advantages of a gold loan is the efficient speed at which funds can be accessed. The loan approval here is instant, as the loan value is determined by the gold offered as collateral.
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Secured Loan
Gold loans are secured loans as you, as a borrower, offer gold ornaments or assets as collateral. This security reduces the risk for the lender, often resulting in lower interest rates compared to unsecured loans. It also mitigates the lender’s risk and offers a sense of security to both parties.
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Flexible Repayment Options
Gold loans offer flexibility in repayment terms. One can choose from a range of tenures, allowing them to tailor the loan to their financial capabilities. This flexible nature of the loans ensures that borrowers can repay as per their financial circumstances.
How to use a gold loan calculator? Is it really helpful?
Using this type of calculator is no rocket science. It is straightforward and immensely helpful for borrowers.
- Download the official Bajaj Finserv application from the Play Store (Android) or App Store (iPhone)
- Sign up using your personal mobile number
- Once you log in, you’ll enter the app’s home page.
- Tap on the top-left bar with three lines
- Open ‘Calculators and Buying Guides’
- Go to ‘Loan Eligibility Calculators’ and under that Tap on ‘Loan Against Gold Jewellery’
- Enter the Gold Weight (in grams) and proceed further
This type of tool is highly recommended as it is beneficial in providing instant and accurate insights into your potential repayment obligations. It helps one in financial planning by allowing borrowers to make informed decisions based on their repayment capacity and preferences.
Conclusion
All in all, leveraging this calculator to avail the best gold loan interest rate is an integral part of intelligent and wise borrowing. Ensure that you complement this tool with your financial objectives so that the loan is used in a wise way while managing repayment responsibilities effectively.