Day by day, the most popular financing method is a loan chosen against gold or a gold loan. The number of gold loans in the country has risen dramatically in the last few years as gold loans have become increasingly popular due to their cheap interest rates. The gold loan per gram has a low-interest rate compared to other personal loans. It is a cause of being the most adapted one. However, it would help if you kept a few options in mind before purchasing gold. It will assist you in getting a better deal on a gold loan and when you resell your gold.
What’s this gold loan per gram methodology?
The purity and quality of the gold jewelry are always determined based on the per-gram gold loan. A gold loan is a secured loan, as you may know. If the borrower does not repay the gold loan, the lender will auction it. If the gold you guarantee is good quality BIS Hallmarked, the per gram gold loan would be more outstanding. The value of a per gram gold loan, on the other hand, would collapse, however, if the gold was of poor quality or purity. The amount of gold loan per gram would be proportional to the gold’s carat rating and quality.
However, when buying gold, you should keep a few things in mind.
- Check for BIS Hallmarking on the Gold Jewellery: You must ensure that the gold you buy is of standard grade and that the necessary markings are present to prove it. Even if you decide to sell the gold ornament, only high-quality gold will get you the best price per gram. As a result, the purity of gold is critical for gold loans and resale.
- Fineness and carat: The standard purity standards for gold jewelry are 22 carats or 91.6 (percentage of gold). The 22-carat marking, fineness number, and BIS markings will be present on an ornament purchased from a reputable and trustworthy jeweller.
- The reputation of a Jeweller: The hallmarking emblem or abbreviation of the jewelry, especially the well-known ones, would be engraved on the gold decoration. Without any examinations, the financier can determine the gold’s quality. In this method, obtaining a loan against gold may become simple.
How do you choose a gold loan lender for getting the best of all gold loans per gram?
The interest rate on a gold loan, the value per gram on a gold loan, and the method for a loan against gold are all things you should consider.
- Always choose a reputable financier: Before approaching a lender for a gold loan, do some background research on them. They should provide the finest per-gram gold value and low interest gold loans. During the loan against gold discussion with the executive, clarify everything, including the processing charge. Some lenders charge processing fees depending on the size of the gold loan. Others demand a set minimum fee, regardless of the quantity of the gold loan sought.
- LTV: Previously, the value was up to 75%. According to the RBI’s most recent directive, the Loan to Value (LTV) ratio would be increased to 90%. Genuine and customer-focused financiers or lenders will lend up to 90% of the gold’s value per gram. It’s worth noting that the purity of the metal also determines the value per gram on a gold loan. As a result, you must be sure of the gold ornament’s quality and purity.
- Quick Processing: Unlike other sorts of loans, a gold loan does not require a lengthy application process, and it also provides a decent value per gram. Compared to personal and corporate loans, the gold loan has a very low-interest rate. Even though these are the fundamentals, the gold loan process will vary depending on the lender. Choose a gold loan with a rapid processing time and a reasonable interest rate.
- Choose one where you can get a pay gold loan online option: Leading non-banking financial companies (NBFCs) have launched an online gold lending service to provide rapid loans against gold too. In addition to providing excellent value per gram, such companies offer incredibly cheap interest rates on gold loans. If you have recurring financial needs, such as for company or personal reasons, applying for an online gold loan can be a good idea.
For several decades, gold has been steadily increasing in price. Before you buy gold, check the purity and quality. It’s crucial to get a reasonable resale price and a fair gold loan value per gram. Do you need a gold loan? Before deciding on a lender, look through all options of the gold loan, including the interest rate and the value per gram.