Beware of these Gold Loan traps!

Beware of these Gold Loan traps!

Gold loans are considered better than personal loans because of low interest rate and faster disbursal. But like any other loan, gold loan also has some traps that can increase your woes. Let’s find out

Gold loans are considered better than personal loans because of low interest rate and faster disbursal. But like any other loan, gold loan also has some traps that can increase your woes. Let’s find out

Lenders track gold prices and consider the changes recorded in the past one month.

Lenders track gold prices and consider the changes recorded in the past one month.

While gold loans are cheaper and easy to get, taking what you can’t repay in time can prove to be very costly.

While gold loans are cheaper and easy to get, taking what you can’t repay in time can prove to be very costly.

While most lenders do not levy pre-payment charges for gold loans, provided at least three instalments have been paid, some lenders may charge you for that.

While most lenders do not levy pre-payment charges for gold loans, provided at least three instalments have been paid, some lenders may charge you for that.

Gold loan tenure is short, typically up to two years, as compared to most other loans. This means, you will have less time to repay.

Gold loan tenure is short, typically up to two years, as compared to most other loans. This means, you will have less time to repay.

Some lenders allow paying interest only every month. Taking this option may increase your loan repayment period.

Some lenders allow paying interest only every month. Taking this option may increase your loan repayment period.

But if you still need money, you can apply for gold loan but not before reading all the terms and conditions.

But if you still need money, you can apply for gold loan but not before reading all the terms and conditions.

Takeaways

Repay fast

Read loan terms

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