Is it better to take gold loan or sell gold?
In the quarter ended March 2021, Manappuram Finance auctioned gold worth Rs 404 crore, compared to a total of Rs 8 crore during the first three quarters. However, if the loan is for funding short-term working capital needs and to cover up for a stretched payment cycle, it is advisable to take it.
What are the advantages of gold loan?
Attractive Interest Rates: Gold Loan interest rate varies from one bank to another. ICICI Bank offers an attractive interest rate, depending on various factors, like purity of the gold ornaments etc. Simple & Easy Documentation: The documentation process to avail a Gold Loan is not as stringent as a Personal Loan.
Is gold loan affect cibil score?
Prompt repayment of any loan can boost your credit score significantly, and Gold Loan is no different. Hence, a Gold Loan taken and repaid early or on time will have a more positive impact on your credit score rather than taking an unsecured personal loan.
Why do people prefer gold loans?
Low Interest Rates As we said that a gold loan is a kind of secured loan, it can come at a lower interest rate than most other loans. As you will be submitting your gold to the lender, they face a much less credit risk while giving you the loan amount. And this is the reason behind the low-interest rates.
Can I sell my gold to a bank?
The bad news is that most banks do NOT accept gold due to missing evaluation possibilities. During the last 10 years many counterfeit coins and bars appeared because the gold price raised so rapidly. The risk of buying gold with a tungsten core is serious and most banks are not willing to bear buying-risks.
Which bank gives more amount for gold loan?
Gold Loan Interest Rates Comparison
| Name of the Bank | Interest Rate | Loan Amount |
|---|---|---|
| HDFC Gold Loan | 11\% p.a. to 16\% p.a. | Rs.10,000 onwards |
| Canara Bank Gold Loan | 7.35\% p.a. | Rs.5,000 to Rs.35 lakh |
| Muthoot Gold Loan | 12\% p.a. to 26\% p.a. | Rs.1,500 onwards |
| SBI Gold Loan | 7.00\% p.a. onwards | Rs.20,000 to Rs.50 lakh |
Why is gold loan important for banks?
A Gold Loan can enable you to tide over unexpected financial setbacks, but it is vital to approach a lender that is governed by the RBI, such as HDFC Bank. Apply for Gold Loan today and fulfil your financial needs on your own like business needs, unexpected expenses, or bill payments.
What is the process of gold loan?
The idea of a gold loan is simple; you pledge your gold articles and get the loan amount in lieu. To do so, you visit a lending institution with the gold you want to pledge and the required documents. The lender performs gold purity checks and determines its weight on the basis of which it evaluates its market value.