What needs to avoid for avoiding Worry in Gold Loan


Not doing any proper check of creditors credibility

Gold loan is a type of a secured loan in which there is no requirement of any kind of collateral security to keep it with the bank or other nbfc or any kind of financial institutions. Better estimations can be done on the basis of gold loan calculators which are available in the official websites. In the case of a gold loan, gold as an asset is always there with the creditor. It is off any kind of default or surrendered payment of the loan and even the surrendering of the loan amount will turn out to be a massive loss for the creditor but the gold will be able to be used to collect the amount for which there is no issue or problem regarding that. The matter of the creditor is finished over here but the question arises about the safeguard and the security of the gold placed by the borrower. What will be happening if the creditor or the loan provided turns out to be a fraud. Regarding this kind of situation, it is advisable and prefers to do the gold loan deal with the well-established banks and nbfc only.

Ignoring the options of the repayment structure

There are different types of payment methods available in the case of a gold loan which are provided by different banks and nbfc. Having a proper discussion with the Bank official about the different types of flexibilities for the payment methods so that in any uncertain period the borrower is not suitable as per the situation. PNB gold loan also offers such facilities .Knowing the terms and conditions and all these kinds of options time beforehand will help to be able to take proper steps and decisions so that the procedure of the loan goes through inefficiently without any kind of default by the borrower as they will be benefited from the time in advance. Randomly selecting the loan provider without a proper payment schedule for having the other options of payments schedule can make you stop or stuck in different kinds of the problem when you are unable to pay as per the currently selected choice of payment option

Unable to compare the loan provider

The citizens of our country are having a tendency of whatever the first option is seen or heard thinks that it is the only best one. But on getting information about the other option then realises that a mistake has already been made. In the same way, availing any financial loan based on gold is also good when it comes to comparing the loan provider at a good comparison can lead to a good loan deal which will not only save a lot of money but also will give relief and benefits to you. Most of the time people use these benefits when they are unable to compare or ignore the comparison factor as they think it is time-wasting work.

All gold does not get qualified

Before availing of a gold loan, there should be proper information and knowledge about how it is preceded and executed. There is a very well-known rush for a gold loan among all people of all the societies but very few people know what type of gold is acceptable for providing any kind of loan. The information such as the limitations of gold purity of 18 to 24 carats is the standard limitation of purity of gold for providing the gold loan. Most of the banks and nbfc or any kind of financial institutions do not consider below or above the limit of the purity for providing any gold loan. Few exceptions can be done but with proper approval under accurate authentication.


To compute we can say that some more activities also if it's like ignoring the ltv or the loan to value ratio which is related to the total loan amount a person will get as a gold loan after the financial institution evaluates the gold jewellery or the coin.