Why is it better to
Sell Your Gold
than avail of Gold Loan Solutions in India?
Sell Your Gold than avail of Gold Loan Solutions in India?
Money doesn’t buy happiness! It is an age-old saying. But in an ever-evolving world where nothing is free of cost, we need a great deal of money to deal with the everyday necessities of individuals. Many times, a commoner finds it difficult to meet every expense with just the salary they’re making. Even if they resolve the basic necessities, there comes a myriad of other crucial needs that can never be overlooked. This involves, medical expenses, education, and residence, along with some luxuries. We have only one life. How can we say no to these essentialities that decide our destiny in this fast-moving world?
To meet up with these requirements, people decide to pledge their heirlooms in anticipation of receiving cash for gold by which they can meet their financial requirements. It is where gold loan solutions in India find their utility. But the question is: does pledging your gold for a basic amount meet your financial requirements forever? Does it offer peace of mind? Will you be able to make savings every month so that you can lead a happy life later? The answer to all these questions might be a big NO considering the consequences of involving in gold loan solutions in India.
In this blog, we’ll be discussing the various disadvantages and scams in pledging your gold for gold loan solutions. We can also have an insight into why economists suggest you to “Sell Your Gold” rather than opt for gold loan solutions in India.
A Sneak Peak into the Liabilities of Gold Loan Solutions in India
What is a Gold Loan?
A gold loan is a secured loan backed by precious gold assets the borrower pledges to the lender. Most often, in government-approved gold loan solutions in India, lenders adhere to RBI standards and give up to 75% of the loan value. The pledged gold remains with the financier as security and could potentially be auctioned in the event of the borrower’s failure to repay the amount.
The Hidden Risks of Gold Loan Solutions
People used to consider gold loans as a feasible solution for immediate access to funds. But the fact is, borrowers must be conscious of the potential risks. While the enticement of quick financing is tempting, the stakes are high when dealing with a treasured asset like gold. Although most of the gold loan solutions in India are government-approved, there are a lot of other private companies offering gold loans in the nation. Listed below are a few of the many potential risks in gold loan solutions that inspire commoners to sell your gold rather than pledge it.
The Demand for Monthly Interest
One of the most critical risks is the persistent duty to pay interest. While the principal amount seem to be reasonable and easily paid off, monthly interest could swiftly increase, particularly when the borrower fails to make payments before the deadline. In many circumstances, failure to pay the interest on schedule leads to extra penalties, making it much more challenging to repay the loan.
The Loss of Gold Collateral
Gold in India is often an heirloom, retaining both financial and sentimental value. Most often, you opt for gold loan solutions in India over selling your gold, believing to retrieve it as soon as possible. However, if the borrower fails to return both the principal and the accrued interest, they risk losing the gold. The lender might auction the gold, leaving the debtor with just a fraction of its estimated value.
Identity Theft and Misuse
Improper handling of the pledged gold is another looming threat. Some non-reliable lenders might fail to safeguard the gold effectively or may even engage in fraudulent activities. Identity theft is another issue since confidential records submitted during the loan procedure might be misused if they get into unauthorized hands.
Gold Loan Scams
As with any financial service, scams are a reality in the arena of gold loan solutions in India. Not everyone you see is trustworthy. Unscrupulous lenders behold your attention by offering fraudulent schemes that guarantee unusually high loan amounts for lower interest rates. It is common for borrowers to fall into these traps and lose their gold or incur hidden fees. Consequently, it forces them to face the worst financial hardship.
Sell Your Gold to Ensure Peace of Mind
Unlike gold loans that burden you with monthly interest, selling your gold offers instant financial relief. You receive the full value of your gold upfront when you sell your gold. It offers immediate funds for urgent needs. This allows you to remain debt-free and avoid paying interest for your own valued asset, which is now in the possession of someone else. With the proceeds, you can commence a savings plan and even repurchase gold in the future, if necessary. Thus, rather than losing a greater fraction of your gold’s value to interest payments, selling your gold offers you complete worth at once, enabling a fresh, debt-free start to life.