3 Mistakes to Avoid When Applying for a Gold Loan
Be it a traditional family or a modern one, everyone appreciates buying gold jewellery, bars, and coins during auspicious times like Dhanteras, weddings, birthdays, etc. A lot of people continue traditions that they have seen their elders follow at home. On the other hand, financially smart folks like to buy gold items to secure their future. This is because gold items can be pledged to take a loan in cases of emergencies. However, this journey can be a little challenging for some people because they end up making up a few blunders along the way.
To save yourself from such faux-pas, here are 4 common mistakes that you should avoid when applying for a gold loan at Muthoot Finance or any other reputed NBFC:
1. Avoiding Prior Research
You should not make a hasty decision while taking a loan of any kind. It is a significant financial decision that should be made after learning about its various aspects and key factors. From getting information on the interest rate offered on a gold loan to understanding the right way of repayment, you should know everything! So, take out time some from your busy schedule and research gold loan.
2. Seeking Unauthorised Money Lenders
In earlier times, people preferred going to a money lender in their area to get some sum of money on loan. This was only because they knew these people lived in the same community, so trusting them was possible. In today’s times, it is better to get a gold loan processed at a reputed bank or non-banking financial company in order to avoid any fraudulent deals.
3. Not Paying Attention to the Interest Rate
Loans that are offered by renowned banks and financial firms on jewellery items have interest rates that the borrower has to pay along with the premium within a set period of time. A lot of times, people with limited knowledge or experience begin the procedure of taking a gold loan without paying attention to the interest rate. This can become a big financial burden in the long run. So, it is recommended to choose a gold loan with a suitable interest rate that you will be able to afford.
It is highly recommended to choose a trustworthy financial firm that offers gold loans with low-interest rates. Additional services like at-home gold loan processing and approval will further make this process easy for you.
