Cash For Gold: How To Get The Best Price For Your Gold Jwellery

Indians have often chosen to monetize their gold holdings in times of dire need, such as the gold jewelry that sits idle at most Indian households. It may be to meet personal financial needs or to raise capital for one’s business. Be it a professional businessman or a housewife, a senior citizen or a farmer. In essence, loan against gold jewelry has often come to the rescue of Indians looking to get cash for gold.

 It often happens that the money you encash upon selling your gold jewelry hardly meets your expectations. It’s thus wise to opt for a safe, secure gold loan instead – that lets you get gold loan at attractive interest rates. The following are some tips to help you choose the best gold loans present in the market.

 1. Compare Different Lenders

 Compare thoroughly amongst the different banks and NBFCs that offer cash for gold jewelry, before opting to go for one. You need to compare -

∙ Interest rates provided

∙ Late payment penalties

∙ Pre-payment charges

∙ Processing Fees

∙ EMI schemes available

Comparing online amongst the best gold loans helps you understand which lender provides you with the best rates, and thus helps you make the most value off your gold jewelry.

 2. Use the Gold Loan Calculator

 Your gold loan eligibility is based on the gold value and the lender capabilities. Banks consider the average gold price as exists in the past 30 days, to estimate the value of your gold jewelry. Some private lenders might also consider the market value as of the day when you applied for the loan. 

 Make use of the advantage of getting to calculate the total amount payable at tenure end, from the confines of your home. Use the online gold loan calculator to calculate the interest owed, the total gold value, the precise interest rates on offer that day, the loan to value available, and the monthly EMI.

 The gold loan calculator calculates gold loan per gram. Your gold jewelry would have to be between 18-22carats. The lender will calculate based on the last 30 days 22carat average market price and will offer a loan to the value of a maximum of 75% as mandated by the Reserve Bank of India.

 Values as of 28Th March 2020:

  Purity of Gold

  Past 30 days per 10gram average Gold Price

  Gold loan per gram gold

  18carat

  33,694

  2527

  20carat

  37,438

  2808

  22carat

  41,182

  3089

 The gold loan per gram is lesser for 18carat gold as opposed to that for 22carat gold.

 3. Gold Loan EMI Calculator

 If you have planned to pay for the gold loan through monthly EMIs, you can check before applying how much you would need to set aside each month. Usually, the Gold Loan EMI is higher in the first few months and keeps getting slashed over with each consecutive EMI.

Higher the gold loan and interest rate, higher will be the EMI payable whereas higher the loan tenure lower would be your monthly EMI.

. Avail a loan against gold with the ease of an SMS, and take home cash for gold as your gold stays safe in secure lockers under 24/7 surveillance.

About This Author

Sandip Gupta Joined: April 26th, 2020