Skip to main content

Gold loans Vs Personal loans

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 

Indians have special attachment towards gold. Sometimes this attachment goes beyond the obvious intentions of gaining from any rally in gold prices.

 

For Indians, gold remains a safe haven that provides peace of mind when many avenues of investments seem to be unremunerative. With the recent fall in gold prices, there is an increasing interest among investors to accumulate this alluring asset. Some wait for further fall. And then there are experts, which are predicting the end of bull run in gold prices. Amidst such mixed signals on gold prices there is a lucrative opportunity of availing a loan against gold. It is largely observed that availing loan against gold is a far better option than availing personal loan. Let us see how availing loan against gold works better than a personal loan.

 

A banker is always comfortable lending against a security compared with a loan application backed by no security. Better the quality of the security, faster the loan disbursement. Your gold ornaments are a good security for a bank. Bank knows the fact that in case of non-payments of dues it can auction the gold and realise its dues. Typically, a bank lends against your ornaments in a few hours. This includes the processing of the loan application and ascertaining the value of your ornaments. You can avail up to 60 percent of the value of gold ornaments. Banks charge interest rate in the range of 13 percent to 14 percent on the loans against gold. These loans come with tenure of one year. Banks do not ask for a guarantor while disbursing a gold loan. Some banks do entertain pre-payment of loans without any pre-payment penalty and in some cases it is around 1 percent. And all this comes to you at a nominal processing fee of around 1 percent of the sanctioned amount of the loan.

 

Juxtapose these advantages with a personal loan. A personal loan comes with tenure of one to three years and the rate of interest charged ranges from 16 percent to 22 percent depending upon the credit profile of the borrower. A borrower has to arrange for a guarantor while taking a personal loan. Banks insist on income proof and conduct thorough due diligence to ascertain applicant's repaying capacity. This takes at least three days to couple of weeks to process and disburse the loan. You have to pay around 2 percent to 3 percent processing fee for a personal loan. If you choose to prepay it, the prepayment charges are around 2 percent to 3 percent. Compared with gold loan, personal loans score low for the borrower on all parameters including ease of getting loan and the price to pay for such a loan.

 

Hence, gold loans can be a good alternative to personal loans. You can judiciously use gold loans in multiple ways. It can help you raise funds to pay off some high cost liabilities such as credit card outstanding. You can raise money for medical emergencies using gold loans. It can also help you pay for some important expenses such as your child's education. If you are running a business, you can consider taking an overdraft facility against the gold ornaments deposited with the bank. This can help you meet your working capital requirements as and when they arise. You pay a simple interest only for the amount utilised for the number of days. Some individuals can look at such overdraft facility against gold as a very good alternative to 'creation of an emergency fund'.

 

For example, a salaried individual may find it difficult to keep aside money equivalent to one year's expenses aside, but he can keep his gold ornaments with the bank and take an overdraft facility that allows him draw funds if need be. Thus, gold loans can help you strengthen your financial plan and come handy to you in many ways.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

---------------------------------------------

Invest in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. ICICI Prudential Tax PlanInvest Online
  2. HDFC TaxSaverInvest Online
  3. DSP BlackRock Tax Saver FundInvest Online
  4. Reliance Tax Saver (ELSS) FundInvest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) FundInvest Online
  7. SBI Magnum Tax Gain Scheme 1993Invest Online
  8. Sundaram Tax SaverInvest Online
  9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFundsInvest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

Popular posts from this blog

BHIM App

What is BHIM? BHIM stands for Bharat Interface for Money , which is an easy way of transferring money from one bank account to an other via a smartphone using the Unified Payments Interface (UPI) platform . It is an instant payments application meant for sending money as well as requesting for payments. How is it different from UPI? BHIM is no different than UPI. But in the case of BHIM, customers don't have to download mobile applications of multiple banks, instead a single BHIM app downloaded from Android Play Store is sufficient. Other than that, payments can be made through a virtual payments ID or through account number and IFS code, same as UPI. What you need to use BHIM? BHIM can be used across an droid smartphones with version 4.0 and above, also it will be made available on iPhones and Windows smartphones very soon. Further, for feature phone users they need to use the USSD feature by dial ing *99#. Why was the need for BHIM felt when UPI is already in place? With various...
Read more

NPS for Tax Saving

The NPS is a great way to save tax if you don't mind locking in your money till you retire. Till last year, the taxability of the NPS was a big issue. But last year's Budget changed the rules and made 40% of the corpus tax free. The PFRDA wants that the balance 60% to be exempt from tax as well. The emphasis is on increasing pension coverage. So, allowing EEE status (to NPS ) is our major demand (in the Budget NPS is especially useful for investors who may have exhausted the `1.5 lakh investment limit under Section 80C but want to save more.   Another way the NPS can cut tax is by rejigging the salary.If a company deposits up to 10% of the basic salary of an employee in the NPS under Section 80CCD(2d), the amount will be tax free. Turn to page 28 to see how much tax this can save. However, the take-home pay of the employee will come down. Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds Top 10 Tax...
Read more

Retirement planning from a long-term perspective

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds     `HOW green was my valley'. This title comes from a movie I had watched many years ago. A little boy's journey into adulthood and the story of a Welsh valley's turn of-the-century descent from pristine paradise to despoiled coal mining.   I thought of the title because it is comparatively reflective of a person's life ­ the glorious years when he is earning and the sun down years when he is not having his regular job and, hence, his living standards comes down. The reason is a combination of things. Inflation of food items, transport, increase in health related costs in the later years of life and increase in expenses in almost all basic amenities of life. In India, the social security system is almost non-existent. In some states, wherever it is available, the scales of benefits are extremely modest...
Read more

SBI Long Term Advantage Fund Series

Invest Rs 1,50,000 and Save Tax upto Rs 46,350 under Section 80C. Get Great Returns by Investing in Best Performing ELSS Funds Top 10 Tax Saver Mutual Funds for 2017 - 2018 Best 10 ELSS Mutual Funds to invest in India for 2017 1. DSP BlackRock Tax Saver Fund 2. Invesco India Tax Plan 3. Tata India Tax Savings Fund 4. ICICI Prudential Long Term Equity Fund 5. Birla Sun Life Tax Relief 96 6. Franklin India TaxShield  7. Reliance Tax Saver (ELSS) Fund 8. BNP Paribas Long Term Equity Fund 9. Axis Tax Saver Fund 10. Birla Sun Life Tax Plan Invest in Best Performing 2017 Tax Saver Mutual Funds Online Invest Best Tax Saver Mutual Funds Online Download Top Tax Saver Mutual Funds  Application Forms For further information contact  SaveTaxGetRich on 94 8300 8300 ------------------------------ ------ Leave your comment with mail ID and we will answer them OR You can write to us at Invest [at] SaveTaxGetRich [dot] Com OR Call us on 94 8300 8300  
Read more

BIRLA SUN LIFE MIDCAP Fund

BIRLA SUN LIFE MIDCAP Fund Online This fund suffered an extended lean patch after the 2008 financial crisis but, of late, it has shown signs of improvement in its performance. It is biased towards mid-caps but takes a sizeable exposure to large caps. The fund is very conscious of the risk involved in playing this segment and has a conservative approach. It strictly avoids concentration risk and runs a highly diversified portfolio that does not allow large positions even in its top stock picks. The fund manager, at times, gives higher importance to macro factors in portfolio construction than company specifics, often drilling down to sub-sectors for finding opportunities. The approach is yet to be fully tested, so investors should wait and see how the performance pans out over the next year or more. For further information contact  SaveTaxGetRich on 94 8300 8300 OR You can write to us at Invest [at] SaveTaxGetRich [dot] Com OR Call us on 94 8300 8300
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now