Investing in gold loans? Know risk factors before proceeding
Gold loans
Investment in gold is seen as a hedge against financial uncertainties and inflation. Loans also can be taken against gold jewellery and ornaments to meet financial emergencies. If you are in urgent need of cash to deal with financial crisis, you can avail a gold loan by pledging your gold jewellery and ornaments.
Credit:
Pinterest/Bispendra2jewels
Risk factors
Gold loans could be an easily available alternative to personal loans, but the customers should know about the risk factors before availing this.
Credit:
Pinterest/Shujja
Risk factor 1
The weight and purity of the gold, pledged as collateral for the loans, are very important parameters. The amount to be disbursed by the lenders is only decided after the gold jewellery is examined properly.
Credit:
Pinterest/Malabar Gold
Risk factor 2
Its important to check the crediblity of the lender before availing the loan and go through the terms and conditions in detail.
Credit:
Pinterest/Stylecraze
Risk factor 3
According to experts, opt for the gold loans offered by banks compared to other creditors.
Credit:
Pinterest/Behance
Risk factor 4
If gold prices fall drastically during the loan tenure, banks may ask for the payment of the difference.
Credit:
Pinterest/Gullbanken
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