Why gold loans aren’t safe & Selling Gold is?

gold loans

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Indians hold approximately 10% of the world’s gold reserve in the form of different items like gold coins, gold jewellery, etc. This is a huge number! And, this happened because buying gold on every occasion in India is considered auspicious. This precious metal in India is very dear to people.

However, this metal is a saviour for people when the financial crisis hits them. They either try to take a gold loan or cash your gold. Many of them think that a gold loan is a good option as they can get it back after repayment of loan value while others prefer cash for gold in delhi because it gets them instant money and no repayment burden.

However, the truth is gold loans are not safe but cash for gold in delhi is. Here is why is it so.

Reasons Gold Loans are not Safe But Selling Gold Is

About Gold Loan

The Reserve Bank of India says that you can get only 75% of your gold value in the form of a gold loan. Even after this pre-defined percentage of gold loan, a lot of banks don’t offer that much amount to the sellers. They offer a lot less than this set percentage- approximately 60-65% of the actual gold value.

In addition to the less value against your gold, you need to pay extra money in the form of interest. Different banks charge different rates of interest for gold loans. Talking about the general interest rate, it is somewhere between 13 to 16%. That means your EMI will be a sum of principal and interest amount. Additionally, if you are unable to repay all your gold loan EMIs, the lending institution or banks can forfeit your gold. This is an extra loss for you, which makes a gold loan an unsafe option.

About Selling Gold for Cash

When you sell gold to a gold buyer in delhi or anywhere else, you get the best value against your gold ornaments and items. The gold buyer will assess the purity and weight of your gold, make making charges deductions, and let you know the final cash for gold in delhi that he can give to you. The value that you get on selling gold is always higher than the gold loan that you get from the banks.

If you have an urgent need for money or want to put your gold ornaments to use, you can sell them to one of the most trusted gold buyers like – ACD Jewellers.

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