What Are the Interest Rates and Terms for Instant Gold Loans?

Interest rates are competitive, and repayment is flexible when availing an instant gold loan. Here is what you need to know:

• Interest rates typically range from 9% to 15% per annum approximately, depending on various factors like the financial institution, loan amount, and Loan-to-Value (LTV) ratio.
• Generally, lower LTV ratios may qualify individuals for lower interest rates.
• The maximum loan tenure offered is usually up to 12 months. However, it can be even higher. Longer tenures can help reduce EMIs by spreading repayment.
• Monthly reducing balance Equated Monthly Instalments (EMIs) are a commonly offered repayment mode. These are said to cover principal and interest.
• Some lenders may offer interest deduction upfront and bullet repayment of principal.
•  Prepayment and foreclosure of loans may be allowed without penalties by most loan providers. This can potentially help reduce interest costs.
• Processing fees are generally in the range of 1% to 5% of the loan amount, though some loan providers may specify a minimum fee. Nevertheless, it can be lower or higher.
• Minimum documentation and a quick approval process are an advantage of such loans.