Five hacks to save money on your gold loan
Online gold loans are becoming a popular way to raise funds by utilising idle gold jewellery lying at home. Doorstep Gold loans are secured loans which makes them available at lower interest rates compared to unsecured personal loans. In case of an emergency, this is a perfect way to raise immediate funds. With the price of gold spiraling up, the loan that you can get has gone up substantially. Like with all other loans, it is important to do your homework to get the best deal. To help you do this, we have put together a few hacks that will help you get the best deal.
Check Out the Lender
Before you hand over your gold to avail of a gold loan, it would be prudent to check out the authenticity of the lender. As with other online loans, you must be careful while applying for an online gold loan as well. It is best to stick to known banks and NBFCs or those backed by good business houses. Don’t fall for cheap promotional gimmicks. You may end up sharing personal information with a fraud who can steal your identity or run away with your gold. Ensuring the safety of your data and your gold jewellery is of paramount importance. Go with the popular lenders and avoid shady lenders that you know nothing about. Checking out online reviews about the lenders will also help in making a decision.
The common mistake, people in a hurry often do, is to go with the first lender they see and agree to the terms mentioned. You lose nothing by comparing all the lenders in the market and going with the best one. In today’s internet-driven world, nobody can give excuses for not finding information. Everything is available at a click. It is best to compare the offers by various lenders and settle for the one best suited to you. Make a shortlist of the options available to you. Pick the one that offers you a loan based on your need and without any jumping rate of interest. Use the Gold Loan Calculator to work out the best option available that meets your needs and fits your budget. Once you do your homework, you are better placed to decide, and you may end up with substantial savings as well.
Check hidden costs
It is up to you to analyse the lender’s offer carefully. All financial products come with a catch. You need to read the fine print to figure out all the hidden costs involved in the transaction. Check out the processing fees, late payment charges, prepayment penalties etc. Go with the lender where these are the lowest. Take the total cost involved into account before finalizing a lender. You may end up saving a good amount of money.
Transfer Gold Loan
If you have an existing gold loan on which you are paying a higher rate of interest, you can look at the transfer gold loan option. For instance, SahiBandhu allows you to transfer your existing gold loan resulting in substantial savings up to Rs 32000 on a loan of Rs 3,00,000. All you need to do is call up SahiBandhu on 1800 309 8440 or arrange a call back on their website. Their executive will reach your home, release your existing gold loan, complete the documentation, and complete the transfer.
Consider the Repayment Options
When you take an online gold loan, the key lies in the comfort of the repayment options available. Always opt for a lender who offers you a slew of flexible repayment options. It will help you manage your instalments better. For example, SahiBandhu offers you three options –
- You can pay the monthly interest and pay the principal at the time of loan closure.
- You can pay both principal and interest as a single instalment at the end of the loan tenure.
- You can use the Gold Loan Overdraft facility where you will be charged interest based on your usage.
Opting for the repayment option that suits your needs will help you save considerably by helping you manage your monthly cash flow.
Here is a Wrap-Up
Going for an online gold loan involves some research on your part to maximise the benefits available. After you shortlist your lenders, you can watch out for promotional offers from them and lock in your loan when you get the best deal. Money saved is money earned. Whether it is the interest rate, Loan to Value or processing fees or repayment options, a thorough analysis will help you decide better.
SahiBandhu, promoted by The Manipal Group, is one of India’s trusted gold loan lenders who provide Doorstep gold loans at reasonable rates. Over INR 4000 crore worth of Online Gold Loans have been disbursed to over 1 lakh customers across the country. To know more about SahiBandhu and the facilities they offer, you can visit https://sahibandhu.com.