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04 September 2011

Gold Loan for Purchasing Flat

Prices of the yellow metal are on a steady rise, with just a small drop recently it has been seen that the yellow metal though one of the favorite among many is also a good investment source. Our generations have been used to gold ornaments and it is one of the most important and irreplaceable jewelery during marriage. With paper gold and gold shares has also come up a golden opportunity of getting loan against gold.
Use your Gold for Home Loan
Considering gold as a option for purchasing a home is also coming up as an alternative to home loans from housing finance institutions and banks. The home loan amount being larger there is also high rate of interest to be paid. So a very good option would be to use your gold which may be lying in your bank or safe unused and stagnating. Why not make your ornaments earn money for you? Use your gold to make money. May sound strange but it is true and you can make your gold earn money for you.
Many lending institutions and banks offer gold loans and loans against your owned gold jewelery. Also if you have shares and paper gold then these can be mortgaged to avail some amount for your purchase of a flat. Make your gold earn money for you. When considering a home loan it would be advisable to first assess and scrutinize all your income and expenditures. Calculate all your investments and club all your finances. Use an online EMI calculator and also other online calculators to see how much home loan you can avail on your income slot. Gold loan can be got easily but here also the interest rate may be high. Home loans have till date come out to be of lowest interest rate on any loan.
Hence one can club some amounts and then go in for a smaller home loan. With online loan offers it has become very easy to apply and get a gold loan. Every financial loan lending institution has the facility to offer loans on gold. Just like any other loans you have to compare and see which gold loan is cheaper rate of interest and also which is ideal loan for you in terms of repayment structure and tenure. Though it is seen that gold loans have  a limit to how much amount is offered as loan and also they may be for a shorter term as compared to home loans which have a repayment period of about 15 to 20 years.
Best way to use your gold would be to apply and take a part loan amount through this asset. You can also go in for a smaller personal loan for a very short period for the down payment if you are not able to collect the whole down payment amount. Then for the remaining home purchase you can go in for a home loan. Remember to pay back these smaller loans as soon as possible and clear off your liabilities. Continue with only single or few loans for longer period and if there is choice keep the home loan continuing and repay the other loans as soon as you can over time. As home loans will have lower EMIs in the beginning which includes interest charged on your loan amount  you can easily repay the other loans like personal loan or gold loan and then continue with your home loan for the rest of repayment period.


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