A lot of individuals are interested to apply for a gold loan but actually, they are unaware of the whole process. Because of this sometimes people make several kinds of mistakes which can lead to a lot of loss in the long run. Hence, at the time of applying for gold loan in Goa through banks and on making financial corporations, individuals must be aware of all the mistakes so that they can be avoided.
Some of the most common mistakes made by people are mentioned as follows:
-People do not check the credibility of the creditors: The gold loan is secure and the collateral will always remain with the creditor or the lender. Most of the people at the time of borrowing the loan never check the credibility of the creditor which is the main reason it can lead to a lot of risk of the collateral. The rates of gold are very much lucrative and on the rise which is the main reason this point should be considered and one must always go with that particular creditor who has a good amount of reputation in the market.
-People normally do not compare the options: Each of the people wants to get the best possible deal but there is no formula to get the best deal. So, one must go with the option of completing all the available options before signing the agreement. Hence, financial institutions should be checked in terms of offers and one must go with that particular option which provides the best quality option, offer and higher loan to value ratio.
-A lot of people do not consider the repayment structure: Many of the people do not consider the repayment structure at the time of availing for a loan. So, it is very much important for the people to understand all the terms and conditions associated with the loans so that the best option is given due importance. One must plan all the finances very well so that all the defaults are avoided. Most commonly the creditors provide the applicants with the option of partial payment, Bullet repayment, EMI, interest-based EMI. So, one must study comprehensively all of them in terms of merits and demerits of each of the options so that the best one can be big.
-A lot of people avoid the LTV calculation: LTV stands for loan value ratio and this is the very basic calculation which most of the people avoid. Higher the LTV ratio more will be the risk involved in the whole transaction. So, it is very much important for the people to effectively calculate the LTV ratio so that the best possible deal can be grabbed.
-A lot of people are unaware about the quality of gold: At the time of pledging the ornaments, it is very much important for the people to be sure of the quality of the gold so that best possible procedures are undertaken by both the applicant and the lender.
Hence, gold loan companies in Goa should be chosen after paying proper attention to the above-mentioned points so that the best possible choice is made.