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Hi All,
How does the gold loan work? What will be the approx. interest one has to pay?
I was told that instead of putting the gold in locker, rather take a gold loan from bank and invest in FD wherein the interest from FD is more than Gold loan interest. Thus both gold would be safe and you would earn money from this.
Your comments on this strategy?
Thanks
Sunil kumar
In gold loan you pledge your gold ornaments, the lender provides you the liquidity at a fixed rate of interest. Loans are certified after inspection of basic documents and satisfactory evaluation of the gold pledged. The amount is given in the form of cash, demand draft or sometimes even an account transfer. The amount is then disbursed in the form of cash, demand draft or sometimes even an account transfer. The process is quicker than personal loans.Quote:
How does the gold loan work?
The interest varies (12%-27%)depending on loan to loan. Check here.Quote:
What will be the approx. interest one has to pay?
As the interest rate you are getting is minimum 12% and current Fixed Deposit rate is 9.25% to 10%, so your will not earn any money but loose 2.5 -3%.Quote:
Originally Posted by msgforsunil
Gold Loan is the best finance which can be availed when a person pledges his/ her gold assets to the bank. One can draw cash against jewellery within 5 minutes without any hassle. Opt gold debt to overcome any financial crunch.
Good method to earn money but first of all you check which investment plan gives you more return than the gold loan interest. Then only you can proceed.