Making Use Of The Rising Gold Prices Through Loans

For every person, there comes a point in life, when there is an urgent need of cash for some important purpose. If it seems to be a small sum, you can ask your friends or family members to lend some money. However, if the amount is large, it might be a struggle for you to find someone who is willing to lend such a large amount. Now that the picture seems clear to you, there are two options you can take. You can either approach a bank to apply for a personal loan or you can look for a gold loan against some gold kept in your home safety locker.

When it comes to personal loans, they are unsecured in nature which is borrowed for purposes like buying consumer durables, family vacation, marriage etc. It depends a lot on the credit worthiness of the borrower. The interest rates here usually fall under the range of 13-15% in most cases. Considering these aspects, gold loans prove to be a much better option.

The precious yellow metal has become a part of everyday life in India. People are now looking at gold as an investment and the reason for this is the rising gold prices. However, gold can also turn into an unproductive and dead investment if not looked properly. If it is lying in a safe in the locker of some back, it is as close to being a dead investment. But if you are ready to use it in times of need and monetize this dead asset, which is when gold becomes a much more useful asset.

 Personal loans, being unsecured, banks sanction them only to those who have a good credit history to their name. This is because the banks are not sure that the borrower is credit-worthy or has the potential to repay the loan on time.

Under such circumstances, gold loans might prove to be the only option. For its approval, the credit history of a person is never a concern because of the fact that gold loans are secure. Also, taking into account all kinds of loans available today, such loans are the fastest to obtain. Since it’s a secured loan, the banks are not worried about the ability of the borrower to repay the money. This also means that there would be lower rate of interest.

Considering the ever increasing gold prices, the banks are getting more and more attracted by the borrowers. If you happen to not repay the loan in time, the bank after waiting for a specified time period, automatically auctions off the gold. This way, they not only get their principal amount and interest back but also make a good profit in the deal.

So, the next time you feel the need for money for any person, all you need to do is visit the nearest bank or financial institution with enough gold to cover the loan you desire. 

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Which Car Loan is Preferable ?

Our country is growing at a rapid pace, and the aspirations of people are in tandem with it. You may be among those aspirants who live in the busy metros, and want to own a vehicle of your own. However, the price tag of the cars is always a concern, and nothing solves it better than borrowing a car loan. So, when you are done choosing the right car to match your requirements, caliber and style, you will definitely move on towards the financials. Usually, the salesman is wise enough to pitch you a financing option, but he will surely draw out his commission. So, why not save those extra bucks and search for a loan yourself?

In India, there are several banks and private financial organizations, which offer various types of car loans. Depending on the budget of your car, and the tenure of the applied loan, different banks have different offerings. If you have decided to buy a brand new car in pristine condition, then take a look at the 'new car loans'.  This type of loan will offer you the greatest borrowing amount as compared to other loans.

Some other popular car loan trends include loan against deposit, and loan against the car itself.  In the latter, the lender has the right to impound your car, if your loan installments are due. The Loan against Car scheme is highly popular among the first time buyers. For applying for this loan, the buyer needs to make a down payment, which is 20 to 30% of the total car value and the remaining amount is borrowed as loan. In this loan, the ownership of the car is leased, and can be changed after repaying the loan fully. This loan is readily provided by the car dealers, with or without commission.

In the recent years, the demand for cars in India has grown significantly as several industries have flourished. So, many banks are now opting for 'fixed rate' lending. The paperwork is simplified, and you can avail the loan within a week. However, financial institutions are known to charge processing fees, and an additional 5% prepayment charge for car loan.

You can avoid a long drawn process by simply applying for a loan online. This process is easy to follow and extremely convenient. Thus, in a few simple steps your dream car will become a reality. So go on and make that purchase. 

The Relation Between Credit Score and Home Loan Rates

Everyone has a list of goals which they would like to achieve. One of the more common things on this list is buying a house. However, this is an extremely expensive asset and a good amount of planning must be done to make this a possibility.

More often than not, people take up a loan in order to make this purchase possible. But before doing so, they need to make sure that they are in a position, to make the necessary payments on the loan, without a delay.

It is also important to take some steps to make sure that the credit history is in order. This plays a major role in determining the home loan rates. A person with a good credit score will be offered a loan at a low rate of interest, thus making it more affordable. When a people have a good financial past, the bank has some kind of assurance that they will be in a position to make the payments, without defaulting.

According to the tenure of the loan and the percentage of interest offered, an EMI calculator can be used in order to determine the amount to be paid, on monthly bases. Even though the EMI becomes more affordable my extending the period of the loan, it is important to take the amount to be paid as interest into consideration.

Once you have reached an affordable figure, the application process can be started. With the introduction of online banking, the home loan procedure has been simplified significantly. The entire process can be carried out online in a quick and efficient manner. The required documents can then be scanned and sent to the relevant bank or financial institution.

However, before making any commitment, you must make sure that you understand the finer details of the offer. You will be spending a good amount of time paying off the same hence, you must be aware of all the clauses of the agreement. If you are unclear about certain things, it would be best to ask the professional and get all your issues sorted.

As a rule of thumb always make sure that your EMI is not more than 60% of your interest. In this manner it will be possible for you to manage timely payments as well as the other expenses which may come up. Thus, you will be one step closer to achieving your goal of owning the house that you live in.