In a financial emergency, taking out a gold loan is the best way to tide over the situation. When it comes to taking a gold loan, choosing the best scheme is imperative to get the best interest rates, comfortable tenure and customisable repayment options.
In this article, we will be discussing some tips that will help you choose the best loan against the gold loan scheme.
Tips for choosing the best loan against the gold loan scheme
1. Assess the credibility of the lender
There are several different types of gold loan schemes available in the market.
So, an individual is advised to compare different lenders offering such schemes to get the best deal. It is also vital that they check out the lender’s credibility before making a final decision.
One can quickly get a gold loan from one of India’s most prominent and trusted gold loan companies – Muthoot Fincorp that offers a vast portfolio of schemes for all types of borrowers.
2. Evaluate the interest rates
Different lenders charge different interest rates for a gold loan.
Make sure you compare interest rates before choosing a loan.
With Muthoot FinCorp, you can get a gold loan with interest rates starting only from 6.9% per annum.
3. Consider the eligibility criteria
One of the most important things to check before taking a gold loan is the eligibility criteria. Different gold loan providers will have different eligibility criteria.
With Muthoot FinCorp, any Resident Indian Citizen between the age of 21 – 65 years can apply for a gold loan.
4. Enquire about other charges
To opt for the best loan, applicants are advised to enquire about other charges levied by the lenders.
Lenders may charge processing fees for processing your gold loan application or may charge a foreclosure fee.
With Muthoot FinCorp, there are no foreclosure charges if you repay the entire loan after three months, and the processing fee is also minimal, i.e., Rs. 12 to 0.25% of the loan amount.
5. Check the documentation requirement
Individuals are also recommended to check the documents required by a lender to get the best loan. Usually, in a gold loan scheme, the documentation requirements are minimal.
With Muthoot FinCorp, you only have to submit identity proof and address proof, no kind of income proof or credit score are required for approval.
6. Consider repayment options
Different lenders will have different repayment options; select the one that suits your budget.
With Muthoot FinCorp, you can choose to pay the interest in installments and the principal later, pay both interest and principal after the tenure or and have an easy EMI repayment option.
Conclusion
When it comes to taking a loan against your gold, it is essential that you weigh all of your options and choose the best gold loan scheme that is suited to your needs.
Individuals should make sure that they read the terms and conditions of the gold loan carefully to know all the associated costs and fees. It is also important to choose a reputable and reliable lender who will be transparent and fair with you throughout the entire loan process.
