InvestorQ : What should I keep in mind before I apply for a gold loan?
Manisha Mehta made post

What should I keep in mind before I apply for a gold loan?

Pratik vyas answered.
3 years ago

Although applying and receiving a gold loan is far easier than getting any other form of loan, there are a few things you must keep in mind before you apply for one.

As is the case with most finance-related aspects of life, there are a few do’s and don'ts we must follow to ensure that we can use a facility to its optimum level.

Here are a few aspects you must keep in mind to get a gold loan easily:

1. Compare rates and rules

While there are numerous players in the market, before you apply for a gold loan, do your research as to which lender is the best for you.

Not all lenders offer the same product features, so pick a lender whose terms and conditions appeal the most to you.

2. Your lender's credibility

You are going to be entrusting a company with your gold, so ensure you select a company that is reputed and has a stellar track record.

Don't take gold loan from a company, even it offers your lower rate of interest, if it doesn’t have good reviews or is not renowned.

3. Extra charges

It is important that you consider the extra cost you are going to be charged for, for the gold loan you are availing of because processing and gold valuing charges have to paid over and above the interest amount.

Due to these charges, you could end up spending more than you expected.