Gold loan: 5 banks offering cheapest gold loan interest rates

The term "Gold Loan" refers to a loan that is secured by gold or jewellery. Gold loans can be availed by offering gold items to your bank in exchange for a specified sum of money. Availability of gold loans these days is a very simple and quick process that requires little documentation and offers customizable tenures and reasonable gold loan interest rates.

Gold loan
Consider using your gold as collateral to get the money you need if you need it right away. Most banks and non-banking financial institutions offer secured loans called "gold loans" (NBFC). The lender calculates the loan amount based on the gold's current market value. You can rapidly get cash with the aid of such a loan.
Also read: Buying gold? Here’s what the correct bill should include

Interest rates on gold loans differ with each bank and Loan to Value also differs. Here is a quick comparison of banks offering the best gold loan interest rates.

Things to consider before availing gold loan
Loan amount
The cost of a gold loan is determined by the weight of the metal, and lenders typically finance between 75 and 90 percent of the gold's worth, depending on the bank. Knowing how much money you can borrow in total against your gold is essential.

Tenure of gold loan
For your gold loan, you should choose a suitable repayment period. Your gold loan's EMIs will depend on the tenure you choose. You can select a period with an Axis Bank gold loan between six and 36 months.

Interest rate
The interest rate on the gold loan is another essential factor that you must take into account. Loans secured by gold have lower interest rates than unsecured loans since they are secured. Before making a choice, you should, however, constantly examine the interest rates charged by different lenders for gold loans.

Other charges
In addition to the interest rate, lenders may charge you other fees for your gold loan. They could include charges for processing, paperwork, EMI bounces, late payments on loans, etc. When requesting a gold loan, carefully research these fees.

Repayment options
Consider your possibilities for paying back your gold loan. For instance, you might decide to pay back your gold loan through monthly interest or regular EMIs. Choose your payback strategy based on your cash flow and income source.

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