Gold prices are increasing day by day due to the corona pandemic. As you know, a gold loan is better than a personal loan, and it is easy to get. It helps in fulfilling your wishes.
Many people have faced economic troubles due to corona. At this time, the gold loan gives them financial support.
There is some reason for high gold demand in pandemic time:-
- Safe investment
- Currency exchange rate (CER)
- Global movement
- Interest rate trends
In Covid 19 pandemic, gold had made the biggest jump in history which was ₹53,250 per 10 gram. Compare different gold prices in India and make the best choice.
FACTORS AFFECTING GOLD PRICE:-
- Demand and supply:- When the demand for gold is high, its price will also increase.
- Currency Fluctuations:- The gold was trading in the American dollar in the international market. So, when India imports the gold, they convert to American dollar into Indian rupees.
- Import duty:- India is the top consumer of gold. The country imports a majority of gold to fulfil the demand of citizens.
- Government Reserves:- The government of India is a gold reserve. According to the government policy, it can buy and sell precious metals through the RBI. Gold prices rise and fall when the Indian government sells or buys them.
- Interest rate:- When other interest rates of investment fall, people invest in gold. So because of this, it is fluctuating as well.
SOME THINGS TO REMEMBER WHILE APPLYING FOR A GOLD LOAN:-
- Compare gold loan rates
- Pick a lender who offers you the simplest rate
- Read terms and conditions carefully
- Do not take a gold loan from a lender who has a bad review.
- Loan amount
- Repayment method
MISTAKE TO AVOID WHEN YOU APPLY FOR A GOLD LOAN:-
- Not comparing your option
- Not checking creditor
- Choosing the wrong repayment method
- Not knowing the hidden charges
- Wrong tenure of repayment
- Not checking the credit reports
TOP BANK FOR GOLD LOAN IN INDIA:-
BANK INTEREST RATE
- HDFC Bank 11% to 16%
- ICICI 11% to 19.76%
- FEDERAL BANK 9.50%
- SBI 9.15%
- CANARA BANK 9.85%(up to Rs. 5 lakh)
- 9.95%(Above Rs. 5 lakh)
How to get the lowest gold loan rates
- Special worker
- Type of loan taken
- Existing bank account holder
- Compare bank offers and gold loan rates.
WHY SHOULD YOU BUT GOLD AND WHAT ARE ITS BENEFITS:
- Gold as an investment:- We use gold as an investment for an emergency and future.Best option for an emergency in times of need is to sell gold. Also Getting a loan is a difficult and long process as compared to Cash against Gold which gives you the actual value“
- Coins and bars:- Investing in coins and bars is also a better option. You just need to decide on where to buy gold coins and bars. Banks also sell gold coins, and purchasing gold coins and bars from the bank is easier and convenient.
- Stock and Exchange trade:- It is a type of mutual fund which we can use to replace physical gold. If your interest is in ETF, then you need to open a Demat and trading account.
- Jewellery:- India is a country where people love gold, and hence, India is in the 2nd position globally when it comes to the consumption of physical gold. Jewellery is in the form of physical gold, and people can purchase it from nearby jewellery shops.
- Gold savings funds:- Gold saving funds is a fund that will invest in an ETF on behalf of you, but there is no need for a Demat and trading account.
Having gold in non-physical form provides relief to you in terms of security aspects, and we can associate it with having gold in physical form. The other big advantage of this is that you do not have to worry about the quality of your gold. Transacting in gold ETFs is at the prevailing market rate, and it is at NAV for the gold fund.