Managing Your Finances With Gold Loans

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In the perfect world, everybody will have good money to meet all their needs. However, in the real world scenario, things don’t work as expected. Especially the middle class and lower middle class people are often struck with finances and there is always a room for loans for managing their finances and to meet their goals. Apparently, banks and non-banking financial companies offer instant gold loan against your gold jewelry with the lowest interest rate. The amount of loan is based on the value of the gold.

These organizations target prospective customers through emails, SMS’s and phone calls. Most of these finance companies offer loans with the lowest interest rate that acts as an alluring factor for the customer with quick disbursals and easy processes.

Managing Your Finances During The Cash Crunch

Both banks, as well as, non-banking sectors offer gold loans for the customers, however, the interest rate of non-banking financial companies are considerably higher than the public bank sectors but they offer faster disbursement with a minimum timeframe. Also, their paperwork is straightforward and simple which can be done without any assistance.

People getting cash crunched is not something new to hear. Every one of us whether rich or poor face a cash crunch situation at some point of time in their lives. Apparently, gold loans act as a great life saver during those instances. Many banks and financial companies help the customer to get instant loans and walk out with their money in less than 30 minutes. Almost all forms of gold such as ornaments, bars, and jewelry can be pledged and get a maximum of 75% cash based on the value of the gold. In addition, the replacement option is flexible so the customers will not face huge stress unlike other loans when repaying the gold loans.  However, there are some golden rules to follow before you take any type of loans.

Essential Rules To Follow When Taking A Loan

Although the gold loans exist for many long years yet many people consider the yellow metal as an asset or a possession and doesn’t prefer pledging even during cash crunches. Instead, they look for other loan options like the personal loan or mortgage loan to meet the financial needs.

However, in the olden ages, gold was regarded as a safe haven during economic downtimes and the people in the ancient ages traded gold with other items. As years progressed, people began to consider gold as a possession and were not ready to trade.  Nevertheless, gold loans are increasing in popularity in the recent ages due to low-interest rate, faster dispersal, and less paperwork.

The monetization of gold is not a new way to get loans against the value of the ornaments or jewelry but now it has been made in a more organized and structured way to keep the transactions transparent and ensure proper protection to the customers.

There are a few essential rules you need to follow so that you will not get trapped by debts

Comparative Analysis Of Different Banking And Non-Banking Sectors

Make a comparative analysis on various websites, read their terms and conditions, loan approval process, repayment options and most importantly the interest rate. Every lender has their own range of loan amount and willing to pay for the purity and weight of the metal. Generally, the pawnbrokers rate the loan based on the percentage of the gold in relation to the daily trading price. So, when you browse through the different website you will eventually get a better insight about all these options.

Don’t Get Enslaved By Debt By Borrowing Money More Than Required

The first and foremost rule of borrowing is to do smart borrowing.  An old adage says, “Don’t live beyond your means” The meaning of the saying is, don’t borrow more than you can repay. Borrow the amount that you can repay easily. Borrowing heavy loans can add stress to your personal and financial life and can ruin your happiness

The Bottom Line

Many banks attract customers by offering low-interest loans and also taking loans with these banks can be fairly easy. However, taking loans without reasons is not a healthy decision.


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