In your emergency time, a Gold loan or selling your gold jewellery, which is best for you
In an emergency, at that time, only gold helps you. If you sold it, money will arrange itself spontaneously. On the other hand, banks and NBFCs give loans on gold jewellery. You should take your jewellery from the bank for a clearance loan. But in these, which one is best? Let’s know about it.
selling gold jewellery demerit is jewellery is out of your hand forever. When you take out a gold loan, you retain your jewellery. The bank returns it to you after you repay the loan amount. During this time, you benefit from any appreciation in gold prices.
Vishal Singh, an executive at DBS Bank India, said, “Gold loans are a practical and safe solution. You get instant access to money while the value of your investment in gold is maintained. Customers don’t have to worry about pledging gold with the bank, as the bank keeps it in its vault.”
Opportunity to Take Advantage of High Gold Prices: Some experts say that gold prices are currently near record highs. Selling gold can be beneficial to take advantage of the high prices. Kinjal Shah, Vice President of the Bombay Chartered Accountants Society, said, “Given the high rates of gold, selling it can yield good returns, as it benefits from the higher prices. There’s no need to pay interest on the loan.”
Gold loans are the right option for short-term needs: He said that the RBI’s LTV limit applies to gold loans. This means that if you need a small amount of money, you can take a loan from the bank by pledging gold jewellery, especially if you need the money for a short period of time. But, if you need more money and do not want to pay EMI on the loan, selling gold jewellery will be beneficial for you.
