A loan is one of the main monetary instruments an individual can have in their armory. It permits an individual to acquire cash for things like a vehicle, a house, or instruction. Loans can likewise help organizations extend and make new positions. Yet, before you can get a loan, you really want to grasp what sort of loans are accessible and how to get the minimum interest rate possible on your gold loan. So, we will start off this article by addressing the different modes of loan that are offered today by the banks in India, then we will understand what is a gold loan and finally discuss some hacks to bag the best gold loan interest rate in India, which you will definitely love.
What are the different forms of loans available in India today?
Nobody can keep the significance from getting a loan as a monetary apparatus. A loan can be extremely useful in accomplishing different financial objectives. Seeing every one of the parts of a loan prior to taking one is significant. This will assist you with pursuing an educated choice and keep away from any likely issues from now on. To list, following are the different types of loans that banks in India offer to their consumers:
1. Personal Loans
These loans are a type of unsecured loan, which can be used for any purpose, by someone having a very decent FICO score.
2. Credit Loans
You can use your credit cards to make payments by taking credits from the bank and paying it back later.
3. Home Loans
This type of loan is taken by someone who either wants to build a new house or buys a new house.
4. Car Loans
As the name suggests it is issued to the consumers who wish to buy a 4-wheeler vehicle for themselves.
5. Two-Wheeler Loans
It is issued to consumers who want to buy a scooter or a motorcycle.
6. Small Business Loans
It is issued to MSMEs for help in setup or various day-to-day processes and operations.
7. Payday Loans
Payday loans are additionally called compensation loans. These are unsecured momentary loans that require the client to be utilized with consistent pay.
8. Cash Advances
These loans are presented with Mastercard backers and permit Visa clients to pull out cash from an ATM machine utilizing the charge card.
9. Home Renovation Loans
These loans are issued to help people renovate their houses.
10. Agricultural Loans
These loans are issued to farmers, to help them buy seeds, fertilizers, and other machinery for agricultural purposes.
These are the types of loans that are backed with physical gold ornaments and are offered at a very low-interest rate by banks and NBFCs without even asking for a FICO score.
12. Educational Loans
These loans are issued to students who want to carry on their education. The rate of interest is usually very affordable.
13.Consumer Durable Loans
Consumer durable loans will be loans that benefit back the acquisition of buyer durables like electronic devices and home devices.
What is a gold loan and why is it better than personal loans and loans against credit cards?
Gold Loan is a program that assists people in overcoming financial insecurity by providing some funds as a loan in place of their gold ornaments. To qualify for a gold loan, you must own gold jewelry with a purity of between 18 and 22 carats. In exchange for the loan amount, the applicant just needs to store gold jewelry in the bank as collateral. Moreover, anyone with a low CIBIL Score can apply for this service. Furthermore, the loan institution is unconcerned with your work position. Thus, anyone having gold in their name can apply for a loan.
Where personal loans and loans against credit cards charge a hefty rate of interest, gold loans can be used for any purpose and at the same time charge a very reasonable rate of interest. FICO score is yet another phenomenon due to which you would like to consider taking a gold loan if possible. You can use Rupeek’s online gold loan emi calculator to calculate your EMI and pre-plan your repayment. This practice is highly encouraged from a financial education perspective.
Hack to get the lowest interest on gold loans in India
Instead of going to the big banks, you can choose some smaller, yet secure and trustworthy NBFCs to get a gold loan. These NBFCs not only provide the best interest rates for your gold ornaments but also give you perks that no banks can easily match.
If you are still confused about which NBFC to choose, you can choose Rupeek. Rupeek is a very trusted platform that provides gold loans in multiple cities across India. It charges one of the lowest interest rates on gold loans in India and offers some very helpful services like doorstep ornament collection and verification. All the paperwork takes less than 1 hrs so that in case of an emergency you don’t have to panic and waste time on these formalities.