6 Things To Keep In Mind Before Going For A Gold Loan

The word “gold” has significant connotations in India. It is one of the most liquid assets and outperforms other investing options due to its higher rate of return. As it can be monetised or pledged to arrange money, it provides a sense of financial stability amid emergencies and immediate fund necessities. You can apply for a gold loan on the Bajaj Markets App, which you can also think of as a Gold Loan app, to satisfy urgent financial needs, whether for a child’s education, house renovation, company finance or any medical emergency.

Getting a gold loan is convenient, with minimal documentation needs and flexible repayment alternatives. Furthermore, comparing interest rates for unsecured loans like personal loans, gold loans have considerably lower rates. They often don’t have any prepayment penalties. Therefore, gold loan applicants must bear a few points to maximise the loan amount and ensure the asset remains safeguarded.

1. Borrowing through Bajaj Markets App: When taking out a loan through the Bajaj Markets App, it’s critical to realise that a gold loan is a secured loan. i.e. you must deposit your asset—jewellery or any other tangible form of gold—with the lending partner connected to Bajaj Markets. Compared to bank loans, Bajaj Markets App’s gold loans have reduced processing costs and an interest rate starting at 10% per year.

2. Valuation of Gold: The approved gold loan amount gets determined by the asset’s value. If you borrow money against gold jewellery, the lender won’t take the additional stones or the jewellery’s design into account; only the price of the gold itself. Additionally, possessing pure gold will increase your valuation, thus increasing the loan amount.

3. Interest Rate Comparison: One can determine the interest rate for the gold loan depending on your risk profile. Depending on your risk assessment, Bajaj Markets App rates start at 10% and increase from there. The interest rate is affected by several different variables, including loan size, repayment period, LTV, etc. Check additional costs as well, such as processing fees, etc. You can even calculate your loan amount with the gold loan interest calculator available on the app.

4. Repayment Options: Choosing a repayment option is essential to buying a gold loan. A wide variety of repayment choices are available on the Bajaj Markets App, including equal monthly instalments (EMI). Or you can decide to pay the principal amount all at once and only make interest payments throughout the loan.

5. Repayment Schedule: Gold loans often have a short-term payback schedule that lasts from one week to one year. Choose a repayment option for your gold loan that suits you. When selecting a tenure, account for your general expenses and other financial flows.

6. Non-payment: One of the most important things to consider before availing any gold loan is what will happen if you cannot make the required payments on time. In such situations, the lender may put your gold up for auction. In addition, the lender may require you to deposit more gold if the price of gold is declined due to market circumstances so that the LTV ratio stated at the time of disbursement gets met.

Remember, when you have a brief cash shortage or urgent personal or commercial financial needs, gold loan can help. You should not get gold loans to pay for expensive things like buying property. You can obtain a loan of up to 75% of the current market value of your gold items by using them as security. You can, therefore, apply for a Gold Loan on Bajaj Markets App, bearing these things in mind.

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