While applying for a gold loan one must keep in mind to avoid errors while approving gold loan. The Gold Loan is one of the best available options when it comes to dealing with financial crisis. Why? Well, It is a service that fulfils your urgent need for funds and provides high funding at a low rate of interest. Gold Loan is a secured service in which the applicant just has to put gold ornaments as security in the bank in return for money.
The Gold Loan Interest Rates are very less in contrast to other services like Personal Loan and Home loan. And, they generally depend upon the quality and quantity of gold. The purity of gold should lie between 18 Carat and 22 Carat, to avail of a Gold Loan. An applicant can avail a loan amount of approximately Rupees 18,000 on 10 grams of gold. Thus, it means that amount of Gold Loan Per Gram is around Rupees 1800. Further, making it a good option while looking out for financial assistance. But there are certain mistakes in gold loan application people make while applying for a Gold Loan.
Avoid the following Common Mistakes in Gold Loan Application
Not Knowing the Hidden Charges:
To begin with, Sometimes companies hide some charges from the customers while availing a gold loan. Therefore, the applicant should read all the terms and conditions properly before availing any loan. Generally, the lending institutions do not inform you about the extra charges they charge at the end of the loan tenure, to attract more and more customers. So if you are going to apply for a Gold Loan or any other loan like Personal Loan then you must read the terms and a condition properly.
Not Knowing the Interest Rate Calculation:
Actually, the company usually offers a low rate of interest in the beginning and ends up charging a high rate. There are different schemes of Gold Loan Interest Rates, so always try to choose the one which offers a low and fixed rate of interest. To be on a safer side. Avoid mistakes in the gold loan application.
Not Comparing your Choices:
Furthermore, It is one of the most Common Mistakes in the Gold Loan Application made by the applicant at the beginning of the application. They only talk to a customer representative of a single lending institution and are fooled by them. But if you are applying for a loan, then you should always compare it with the other banks and financial companies. And go with the bank which offers you the lowest rate of interest in less time. If you find this time consuming, then you can apply through Dialabank and avail unbiased and transparent services.
Being Unaware of the Quality of Gold that Qualifies for the Loan:
Also, at the time of evaluation of Gold, you must take care of the weight, quality, and purity of the Gold. You should always be vigilant while verification of your ornaments. Please be aware of mistakes in gold loan applications because sometimes there can be mistakes in gold loan applications while verifying the ornaments that further affect your loan amount.
Not checking Creditor’s Credibility:
Finally, it is very important to check whether you are availing a Gold Loan from a reputed company. Gold Loan is a secured service, requires to put gold ornaments as security with the lender. So, there have been cases in which, the lending company turned out to be a fraud. And, people lost their gold ornaments.
The above-mentioned mistakes in the gold loan application should be avoided to get instant approval of the gold loan. These mistakes in gold loan applications may lead to rejection of gold loan applications.
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