The immense financial value of this yellow precious metal has caused many people to leverage its monetary potential. More and more people across the world are buying and selling the articles and accessories made out of it. But in recent times, there has been a rise in the practice of taking a Gold Loan against such ornaments made of the yellow mineral. This has happened because of the pandemic that hit recently. It caused the people to suffer from numerous financial problems that they could not have imagined before.
Many individuals even lost their sources of income and did not know how to meet their ends. In such a scenario, all of us needed a reliable and tangible asset that could help us generate immediate money and solve our monetary issues. What better than taking a Gold Loan? After all, the immense value and market worth of this mineral is well known all over the world. Its price is exponentially higher than similar other metals in common use in different industrial and commercial spheres. This is because of the unique and advantageous characteristics that it comes with and makes itself stand apart from the majority of other resources. Keep reading further to know more about the pros and cons of taking a Gold Loan and how you can settle it to avoid facing the disadvantages.
The Common Issues with a Loan on Gold
There are many lenders that are ready to give you such instant loans. They include private and nationalized banks, as well as non-banking finance companies (NBFCs). When you go to them, all you have to do is take your articles and pledge them to the firm. Their staff will analyze their value and give you the funds you need. But here is the catch.
They do not give you the full value of your prized possessions. The returns that they give you hardly go up to 75% of the full price of the ornaments. Hence, the Loan On Gold that you get will be a loss for you, and your budget and expenses might be affected.
Furthermore, you would have to pay monthly installments to repay the full amount. These funds that you will pay every month also come with a high-interest rate as well as a transaction fee. Therefore, you would have to repay more than what you got against your jewelry.
So not only do you get a lesser value on your ornaments, but you also incur a loss on the repayment due to the unnecessary interest rates and fees!
The Consequence for Gold Loan
As you might already know, the financial problems faced by people are getting worse as the pandemic worsens the state of the markets. It is hard for people to get a new job and regain a stable source of income.
Though they take a Loan Against Gold to try and take care of their expenses and monetary ends, it is hard for them to always be regular and on time while paying the monthly installments. The lesser loan amount and the higher interest rates further worsen the situation for them.
But if you are unable to repay the funds and their installments on time, then the lenders seize your possessions permanently! Hence, you would not be able to reuse and repurpose your articles and also end up losing excess money in the process of repayment!
This is a huge losing factor for the common folk, which is why you need to settle your loans as soon as possible to prevent your ornaments from getting seized!
The Loan Settlement
Professional and experienced firms like Cashfor Gold and Silverkings Pvt Ltd can help you with this Gold Loan Settlement. They are professional jewelry dealers who also help people manage their loans and release their pledges items.
All you need to do is explain your situation to their staff and they will arrange the necessary funds to pay to the lenders. Then they will release your jewelry before it can be seized and give them to you.
After you get your ornaments, you can reuse them for your financial benefits and decide on a convenient mode of repayment. You can pay the monthly installments that you are comfortable with, not having to worry about any high-interest rates or processing fees!
