Last Updated : 11 Jul, 2022 01:44 PM
Published : 11 Jul 2022 01:44 PM
Last Updated : 11 Jul 2022 01:44 PM
People only think that getting a loan is enough when they mortgage gold jewelery for urgent family needs. However, there are some important things to keep in mind while getting a jewelry loan.
Safety is important: First make sure about the credibility of the pawning company. When we buy a home loan, we buy the house with the value. No one can shake the house and take it away. So don’t worry about the security of the mortgaged property. But gold is not like that.
Caution is required as it is a perishable item. Some institutions do not have facilities for safekeeping of pawned gold jewellery. Your jewelery should be returned to you after paying off the loan amount. Is it a related company? Make sure that.
How much interest?
As you need more money, you can approach banks or financial institutions that offer more loans. But companies that offer more money can also charge more interest. Therefore, you should compare the interest rate with other lending institutions and decide if it is low.
Charges
Most of the banks do not charge any transaction fee for giving gold jewelry loan. However, some banks charge this fee.
It is said that many people who took gold jewelry loan got drowned because they did not pay it properly. The main reason for this is missing the monthly installment of gold jewellery. This will result in loss of the pledged gold.
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