Gud Story
  • Home
  • Business
    • All
    • Automotive
    • Crypto
    • Education
    • Entrepreneurs
    • Finance
    • Healthcare
    • Industries
    • Insurance
    • Investment
    • Legal
    • Retail
    • Share Market
    • Startup
    Which Gold Loan is Better for You

    Which Gold Loan is Better for You: Fixed or Jumping Interest Rates?

    Property Settlement

    Legal Fees and Property Settlement: Here’s What Your Family Lawyer wants You to Know

    Emergency Fund Money

    How Much Money Does Your Emergency Fund Need?

    How to Get a Loan with Bad Credit Using

    How to Get a Loan with Bad Credit Using Mobile Apps

    Packing Efficiency of a Rectangle

    Packing Efficiency of a Rectangle

    How Much Should I Invest in Dividend Funds

    How Much Should I Invest in Dividend Funds? Is Dividend on MF Taxable?

    Trending Tags

    • Decor
      • All
      • Design Ideas
      • Events
      • Furniture
      • Gardening
      • Home Repair
      • Housekeeping
      • HVAC Control System
      • Kitchen
      • Painting
      • Pest Control
      Wedding Day Tips

      Great Wedding Day Tips to Set Your Special Day Apart

      Grow and Care Money Tree 

      Easy Steps to Grow and Care Money Tree 

      Domestic and Commercial Cleaning

      The Difference Between Domestic and Commercial Cleaning

      Driveway Paving

      Driveway Paving: How Much Does it Cost to Pave a Driveway?

      Gutter Installation

      Gutter Installation: Tips on How to Install Rain Gutters

      Guidelines for Home Improvement

      Premium Guidelines for Home Improvement

      Trending Tags

      • Lifestyle
        • All
        • Beauty
        • Culture
        • Drink
        • Fashion
        • Food
        • Hair Care
        • Health
        • Jewellery
        • Make up
        • Parenting
        • Shopping
        • Skin Care
        • Travel
        Breast Grow Bigger

        Top 3 Tips on How to Make Your Breast Grow Bigger Overnight

        Military Bun

        Easily Make Various Types of Military Bun

        cosplay culture

        Cosplay Culture: A Brief Discussion

        Local Coin Dealer

        4 Reasons You Should Establish A Relationship with A Local Coin Dealer

        What is EMDR

        What is EMDR, and What Conditions Does It Treat?

        Identify Insect Bites Pictures

        Use These Tricks to Identify Insect Bites Pictures

        Trending Tags

        • Sports
          • All
          • Basketball
          • College Football
          • Cricket
          • Formula 1
          • MLB
          • NBA
          • NCAA
          • NFL
          • NHL
          • WWE
          Increase Shooting Percentage

          Increase Shooting Percentage with These Tips

          Best Players in The IPL History

          Top 5 Best Players in The IPL History So Far

          Cricket World Cup 2023

          Information About Cricket World Cup 2023

          Fantasy Cricket Game

          How does Fantasy Cricket Game Unite Fans All Over The World?

          3 Biggest Disappointments from The 2022/23 NFL Season

          Who Were The Three Biggest Disappointments from The 2022/23 NFL Season?

          The Premier League Managers

          Taking Stock of The Premier League Managers Who Have Been Sacked So Far This Season

          Trending Tags

          • Gaming
            • All
            • Apex Legends
            • Call of Duty
            • Esports
            • FIFA
            • Fortnite
            • Genshin Impact
            • GTA
            • Guides & Tips
            • League of Legends
            • Overwatch
            • Pokemon
            • Valorant
            Battlefront 2 Crossplay

            Get To Know Is Battlefront 2 Crossplay?

            Mobile Casino

            ベラジョンカジノ Mobile Casino – The Future of Online Gaming

            Gambling Affiliation on 1xBet

            A Profitable Gambling Affiliation on 1xBet Awaits You

            how to get free roblox gift cards

            What is The Roblox Gift Code, and How to Obtain It?

            Casino Industry in New Zealand

            The Casino Industry in New Zealand: Is it Thriving?

            Dota 2 Confirmed Major Tournaments for 2023

            Dota 2 Confirmed Major Tournaments for 2023

            Trending Tags

            • Tech
              • All
              • Apps
              • Blockchain
              • Digital Marketing
              • Gadgets
              • How To
              • Mobile
              • NFT
              • PC & Mobile
              • Science
              • Solar Energy
              • Work Life
              IOT and Blockchain

              IOT and Blockchain | The Next Hot Technology?

              IoT App Development

              How Does The Retail Sector Benefit from IoT App Development?

              TikTok Ad Campaigns

              Top Tips for Creating Lucrative TikTok Ad Campaigns

              Picture Background Eraser Helpful

              How is a Picture Background Eraser Helpful in 2023?

              Strategies to Improve Workplace Culture

              Essential Strategies to Improve Workplace Culture

              Universal Remote Codes

              A Guide on GE Universal Remote Codes

              Trending Tags

              • Entertainment
                • All
                • Anime
                • Biography
                • History
                • Quotes
                • TV & Movies
                Star Wars

                Filming Of Star Wars: Skeleton Crew Wraps Up

                Doja Cat

                Doja Cat Makes Heads Turn At The Schiaparelli Show

                Patrick Alwyn

                Patrick Alwyn: Wiki, Bio, Family, Career, Love Life, Net Worth, & More

                Jeremy Claudio

                Jeremy Claudio: Wiki, Bio, Family, Career As A Musician, Love Life & More

                Sha’carri Richardson

                American Sprinter Sha’carri Richardson Removed From Flight

                Lil Mama

                Fans Are Intrigued With The Confirmation of Romance Between Lil Mama And 5ive Mics

                Trending Tags

                No Result
                View All Result
                Gud Story
                • Home
                • Business
                  • All
                  • Automotive
                  • Crypto
                  • Education
                  • Entrepreneurs
                  • Finance
                  • Healthcare
                  • Industries
                  • Insurance
                  • Investment
                  • Legal
                  • Retail
                  • Share Market
                  • Startup
                  Which Gold Loan is Better for You

                  Which Gold Loan is Better for You: Fixed or Jumping Interest Rates?

                  Property Settlement

                  Legal Fees and Property Settlement: Here’s What Your Family Lawyer wants You to Know

                  Emergency Fund Money

                  How Much Money Does Your Emergency Fund Need?

                  How to Get a Loan with Bad Credit Using

                  How to Get a Loan with Bad Credit Using Mobile Apps

                  Packing Efficiency of a Rectangle

                  Packing Efficiency of a Rectangle

                  How Much Should I Invest in Dividend Funds

                  How Much Should I Invest in Dividend Funds? Is Dividend on MF Taxable?

                  Trending Tags

                  • Decor
                    • All
                    • Design Ideas
                    • Events
                    • Furniture
                    • Gardening
                    • Home Repair
                    • Housekeeping
                    • HVAC Control System
                    • Kitchen
                    • Painting
                    • Pest Control
                    Wedding Day Tips

                    Great Wedding Day Tips to Set Your Special Day Apart

                    Grow and Care Money Tree 

                    Easy Steps to Grow and Care Money Tree 

                    Domestic and Commercial Cleaning

                    The Difference Between Domestic and Commercial Cleaning

                    Driveway Paving

                    Driveway Paving: How Much Does it Cost to Pave a Driveway?

                    Gutter Installation

                    Gutter Installation: Tips on How to Install Rain Gutters

                    Guidelines for Home Improvement

                    Premium Guidelines for Home Improvement

                    Trending Tags

                    • Lifestyle
                      • All
                      • Beauty
                      • Culture
                      • Drink
                      • Fashion
                      • Food
                      • Hair Care
                      • Health
                      • Jewellery
                      • Make up
                      • Parenting
                      • Shopping
                      • Skin Care
                      • Travel
                      Breast Grow Bigger

                      Top 3 Tips on How to Make Your Breast Grow Bigger Overnight

                      Military Bun

                      Easily Make Various Types of Military Bun

                      cosplay culture

                      Cosplay Culture: A Brief Discussion

                      Local Coin Dealer

                      4 Reasons You Should Establish A Relationship with A Local Coin Dealer

                      What is EMDR

                      What is EMDR, and What Conditions Does It Treat?

                      Identify Insect Bites Pictures

                      Use These Tricks to Identify Insect Bites Pictures

                      Trending Tags

                      • Sports
                        • All
                        • Basketball
                        • College Football
                        • Cricket
                        • Formula 1
                        • MLB
                        • NBA
                        • NCAA
                        • NFL
                        • NHL
                        • WWE
                        Increase Shooting Percentage

                        Increase Shooting Percentage with These Tips

                        Best Players in The IPL History

                        Top 5 Best Players in The IPL History So Far

                        Cricket World Cup 2023

                        Information About Cricket World Cup 2023

                        Fantasy Cricket Game

                        How does Fantasy Cricket Game Unite Fans All Over The World?

                        3 Biggest Disappointments from The 2022/23 NFL Season

                        Who Were The Three Biggest Disappointments from The 2022/23 NFL Season?

                        The Premier League Managers

                        Taking Stock of The Premier League Managers Who Have Been Sacked So Far This Season

                        Trending Tags

                        • Gaming
                          • All
                          • Apex Legends
                          • Call of Duty
                          • Esports
                          • FIFA
                          • Fortnite
                          • Genshin Impact
                          • GTA
                          • Guides & Tips
                          • League of Legends
                          • Overwatch
                          • Pokemon
                          • Valorant
                          Battlefront 2 Crossplay

                          Get To Know Is Battlefront 2 Crossplay?

                          Mobile Casino

                          ベラジョンカジノ Mobile Casino – The Future of Online Gaming

                          Gambling Affiliation on 1xBet

                          A Profitable Gambling Affiliation on 1xBet Awaits You

                          how to get free roblox gift cards

                          What is The Roblox Gift Code, and How to Obtain It?

                          Casino Industry in New Zealand

                          The Casino Industry in New Zealand: Is it Thriving?

                          Dota 2 Confirmed Major Tournaments for 2023

                          Dota 2 Confirmed Major Tournaments for 2023

                          Trending Tags

                          • Tech
                            • All
                            • Apps
                            • Blockchain
                            • Digital Marketing
                            • Gadgets
                            • How To
                            • Mobile
                            • NFT
                            • PC & Mobile
                            • Science
                            • Solar Energy
                            • Work Life
                            IOT and Blockchain

                            IOT and Blockchain | The Next Hot Technology?

                            IoT App Development

                            How Does The Retail Sector Benefit from IoT App Development?

                            TikTok Ad Campaigns

                            Top Tips for Creating Lucrative TikTok Ad Campaigns

                            Picture Background Eraser Helpful

                            How is a Picture Background Eraser Helpful in 2023?

                            Strategies to Improve Workplace Culture

                            Essential Strategies to Improve Workplace Culture

                            Universal Remote Codes

                            A Guide on GE Universal Remote Codes

                            Trending Tags

                            • Entertainment
                              • All
                              • Anime
                              • Biography
                              • History
                              • Quotes
                              • TV & Movies
                              Star Wars

                              Filming Of Star Wars: Skeleton Crew Wraps Up

                              Doja Cat

                              Doja Cat Makes Heads Turn At The Schiaparelli Show

                              Patrick Alwyn

                              Patrick Alwyn: Wiki, Bio, Family, Career, Love Life, Net Worth, & More

                              Jeremy Claudio

                              Jeremy Claudio: Wiki, Bio, Family, Career As A Musician, Love Life & More

                              Sha’carri Richardson

                              American Sprinter Sha’carri Richardson Removed From Flight

                              Lil Mama

                              Fans Are Intrigued With The Confirmation of Romance Between Lil Mama And 5ive Mics

                              Trending Tags

                              No Result
                              View All Result
                              Gud Story
                              No Result
                              View All Result
                              Home Business Finance

                              Which Gold Loan is Better for You: Fixed or Jumping Interest Rates?

                              Megha Agarwal by Megha Agarwal
                              January 25, 2023
                              in Finance
                              Reading Time: 5 mins read
                              0
                              Which Gold Loan is Better for You
                              Share on FacebookShare on Twitter

                              Gold is considered one of the most valuable assets in India that can easily be liquidated into cash during tough times. People prefer investing their money in gold ornaments and coins so that they can avail maximum value of their investment in future. Thus, during financial emergencies or requirements, people prefer liquidating their gold investments temporarily into cash rather than applying for a loan in banks or financial institutions known as a gold loan or loan against gold.

                              A gold loan is generally described as short-term borrowing, where an individual keeps their gold investments (ornaments, biscuits, or coins) as collateral to an NBFC (Non-Banking Financial institution) for a specific tenor at a reasonable interest rate.  One can avail of a gold loan to fulfil various fund requirements like medical emergencies, education, renovation, etc. without any hassle and minimal paperwork.

                              With so many NBFCs offering gold loans in the market, it is important to understand the concept of a gold loan in detail before applying for them.

                              Table of Contents

                              • Features and Benefits of Gold Loans
                                • 1. Quick Procedure
                                • 2. Zero Processing Fee
                                • 3. Zero Foreclosure Charges
                                • 4. No Requirement of Income Proof
                                • 5. Collateral Security
                                • 6. Flexible Fund Usage
                                • 7. Zero Credit Score Requirement
                              • Gold Loan Eligibility 
                              • Documents Required for Gold Loan
                              • Types of Interest Rates in Gold Loans
                                • Difference Between Fixed Interest Rate and Jumping Interest Rate
                              • Fixed Interest Rate or Jumping Interest Rate – Which one is Better?
                                • Final Takeaway

                              Features and Benefits of Gold Loans

                              Here are some key features and benefits of gold loans –

                              1. Quick Procedure

                              The gold loan procedure involves gold testing and valuation to determine the loan amount. As soon as the valuation is completed, with minimal paperwork, the lender or lending institution disburses the loan amount.

                              ADVERTISEMENT

                              2. Zero Processing Fee

                              There are zero processing or additional charges involved in the gold loan procedure.

                              3. Zero Foreclosure Charges

                              Gold loans do not involve any foreclosure charges. The individual does not have any penalties upon prepayment of the gold loan.

                              4. No Requirement of Income Proof

                              Gold loan approval does not require income proof during the documentation procedure. The borrower’s profession and earning capacity are not taken into consideration.

                              5. Collateral Security

                              The lending institution ensures the safety and security of the gold (coins or ornaments) kept as collateral with them. Upon complete settlement of the loan amount, the gold is handed over to the borrower.

                              6. Flexible Fund Usage

                              The lending institution does not question the borrower regarding the usage of funds sanctioned under a gold loan. These funds can be used for house construction or renovation, education, wedding, etc.

                              7. Zero Credit Score Requirement

                              Generally banks or financial institutions check the credit score of the applicant before any loan approval, however, in gold loans the lending institution does not check the applicant’s credit score.

                              Gold Loan Eligibility 

                              There are some basic parameters to be eligible for a gold loan –

                              • You should be a native of India
                              • Your age should be between 21-69 years.
                              • You can be either salaried or self-employed. There is no profession-based restriction.
                              • The 22-carat gold kept for collateral should be marked by ISI to ensure the purity of gold.

                              Documents Required for Gold Loan

                              • Passport photographs
                              • Identity Proof – Aadhar card, PAN card, etc.
                              • Address Proof – Utility bills, passport, etc.

                              ** Note – The eligibility and documentation requirement might differ as per the norms and policies of the lending institution.

                              Types of Interest Rates in Gold Loans

                              There are two types of interest rates offered by banks or financial institutions for gold loans –

                              • Fixed Interest Rate – In fixed interest rate gold loans, the interest charged on the loan amount is constant throughout the loan tenor and the borrowers pay the monthly instalments according to the pre-fixed rate of interest.
                              • Jumping Interest Rate – In jumping interest rates, the interest is calculated on the overdue amount, when the borrower fails to pay the monthly instalments on time. This increased rate of interest post-due date is known as a jumping interest rate.

                              Difference Between Fixed Interest Rate and Jumping Interest Rate

                              Fixed Interest RateJumping Interest Rate
                              The interest rates are fixed throughout the loan tenor.There is an increase in the rate of the interest post-due date if the borrower fails to pay the instalment on time.
                              The interest rates are comparatively higher than the jumping interest rates.Jumping interest rates are comparatively lower by 1-2.5%, however, if you fail to pay the instalments on time, this might make it far more expensive.
                              Any delay in instalment payment will result in minimal penalty.Any delay in instalment payment will lead to a hike in the interest rate on the overdue amount.
                              Fixed Interest rates are a profitable deal for long-term gold loan borrowings. Selecting a Jumping interest rate in gold loans will lead to high amounts of instalment payments every month.

                              Fixed Interest Rate or Jumping Interest Rate – Which one is Better?

                              If you have a stable source of income and can afford to pay monthly instalments on time, you can opt for jumping interest rates, whereas if you do not have a stable income and consider gold loans as long-term borrowings, you should consider fixed interest rates. 

                              You need to compare and analyse the total instalment amounts along with your goals and repayment capacity and then select the gold loan interest rate as per their suitability.

                              Final Takeaway

                              Gold loans are considered one of the easiest loan options for fund arrangement due to their hassle-free and seamless procedure, however, one must carefully understand the types of interest rates, before opting for one. Calculating monthly instalments via a gold loan interest rate calculator might help in making a wise decision.

                              Also read: How Can a Savings Plan Help to Fulfill Your Life Goals?

                              Related Posts

                              How to Get a Loan with Bad Credit Using

                              How to Get a Loan with Bad Credit Using Mobile Apps

                              January 25, 2023
                              Where to Open an Offshore Account

                              Where to Open an Offshore Account in The First Place

                              January 20, 2023
                              Installment Loans

                              Why are Installment Loans Beneficial?

                              January 19, 2023
                              Pros and Cons of Opening a Savings Account

                              Pros and Cons of Opening a Savings Account

                              January 17, 2023
                              ADVERTISEMENT
                              Gud Story

                              Gudstory is the ultimate guide that will keep you updated about almost everything and anything. We aim to provide our readers with an informative detail about the viral stories that have been occurring around us. Here at Gudstory, we focus on delivering our readers with the latest information about everything.

                              The stories that we cover specialize in a wide niche which includes News, Lifestyle, Fashion, Entertainment, Technology, and Women. The purpose of the blogs and articles is to keep you updated using vivid formats and interesting styles so that significant information stays in your mind.

                              Business World

                              • Business
                              • Automotive
                              • Crypto
                              • Education
                              • Entrepreneurs
                              • Finance
                              • Insurance
                              • Investment
                              • Share Market
                              • Healthcare
                              • Industries
                              • Legal

                              Decor

                              • Home Improvement
                              • Design Ideas
                              • Events
                              • Furniture
                              • Gardening
                              • Home Repair
                              • Housekeeping
                              • HVAC
                              • Kitchen
                              • Painting
                              • Pest Control

                              Real Estate

                              • Real Estate
                              • Moving
                              • Construction
                              • Property Loan
                              • Selling a Home
                              • Buying a Home
                              • Commercial Real Estate

                              Company

                              • Advertise
                              • About Us
                              • Contact Us
                              • Home
                              • About
                              • Advertise
                              • Contact
                              • Privacy Policy

                              © 2018-22 Gud Story

                              No Result
                              View All Result
                              • News
                              • Business
                                • Automotive
                                • Education
                                • Finance
                                • Healthcare
                                • Investment
                                • Legal
                                • Real Estate
                                • Startup
                                • Entrepreneurs
                                • Industries
                                • Retail
                              • Decor
                                • Design Ideas
                                • Home Repair
                                • Furniture
                                • Gardening
                                • Kitchen
                                • Housekeeping
                                • HVAC Control System
                                • Events
                              • Lifestyle
                                • Health
                                • Food
                                • Drink
                                • Travel
                                • Beauty
                                • Make up
                                • Hair Care
                                • Skin Care
                                • Fashion
                                • Jewellery
                                • Shopping
                              • Sports
                                • NBA
                                • NFL
                                • College Football
                                • MLB
                                • NHL
                              • Gaming
                                • Esports
                                • Apex Legends
                                • Battlefield
                                • GTA
                                • Call of Duty
                                • Fortnite
                                • Cosplay
                                • CS:GO
                                • FIFA
                                • Genshin Impact
                                • Guides & Tips
                              • Tech
                                • Work Life
                                • Science
                                • Apps
                                • Mobile
                                • Gadgets
                                • Digital Marketing
                                • How To
                                • PC & Mobile
                                • Blockchain
                                • NFT
                              • Entertainment
                                • Biography
                                • TV & Movies
                                • Anime
                                • Quotes
                                • History
                              • Relationship
                              • Women
                              • Animals
                              • Luxury
                                • Billionaires
                                • Leaders
                                • Cars & Bikes
                                • Jets
                                • NCAA
                                • UFC
                                • Culture
                                • Homes
                                • Hotels
                                • Interiors
                                • Formula 1

                              © 2018-22 Gud Story