Very often, you find yourself in a financial pickle, and you need more money than you have on hand, so you have to do the dreaded and take out a loan. The mere idea of taking out a loan tends to make people groan, and the word interest sends shivers of financial woe down their spines.
But luckily, with modern technology, there are many apps and websites that allow users to complete at least some of the process from the comfort of their homes. These apps even have features that let users calculate EMI and interest rates, all of which make the whole process far less stressful, so let’s get into it.
Introduction To The Loan App:
Let’s say you need money and pronto, so what can you do about it? You could borrow money from family, but that might be worse than a loan because the relative in question is unlikely to ever let you forget it, or you could borrow from a loan shark, but that comes with the hazard that failing to repay might have you sleeping with the fishes. So, that leaves you with the bank. While this option has its flaws, certainly it is unlikely to toss you into a river or pester you till your dying day.
Now that you’ve decided on borrowing from a bank, there are two types of loans you can consider: secured and unsecured. An unsecured loan is, as the name suggests, a loan taken out without any security offered and tends to come with much higher interest rates. While a secured loan is a loan given with collateral offered, whether it be property, stocks or even insurance polices. However, one of the more popular options for many Indian households is the gold loan, also known as a jewel loan. This allows users to offer their gold items as collateral.
Many banks and other financial institutions offer this kind of loan. To find one, simply look up ‘gold loan near me’, and you will find multiple options. Once you read through the terms each offers, choose one that best suits your situation.
Interest rates:
Gold loans tend to have shorter tenures than other types of loans, ranging from a few weeks to 12 months or a year. They also tend to have much lower rates of interest, both of which make them an attractive option for those who have short-term financial needs.
Many apps and websites have a feature called something like a “gold loan calculator” that lets users input basic data like the value of the gold, tenure, and loan amount in order to find out the interest rates.
Most lenders allow borrowers to repay through EMI, which stands for Equated Monthly Instalment. It is the fixed amount of money you pay every month to repay a loan or for large purchases. Now, instead of paying the full loan in one go, you break it into smaller, manageable monthly payments. Some apps even offer a ‘EMI calculator gold loan’, which helps borrowers to fully plan out their EMIs.
Conclusion:
While many apps and websites offer the ability to initiate the application process from the comfort of their homes, they do still require in-person verification and for the gold to be handed over in person. Due to gold’s high liquidity, most lenders are able to give you the money much quicker than as with other traditional loans. Once that is done, you can make use of what some call a “gold loan calculator app” to calculate EMIs and interest rates, to help you repay the loan and get your gold back.