Gold Loan is one of the most popular loan options among customers when they are in need of some urgent requirements. One of the reasons behind its popularity is the ease and convenience with which customers can get the loan amount. Customers just need to submit their Gold Ornaments and Coins and lenders will provide the loan amount against the overall price of gold. Your ornaments will work as security against the loan amount. This is the reason there are several people who ask this question about what happens if I am not able to pay the Gold Loan?
The question is pretty valid as customers want to be assured about the answer; they are putting their beloved ornaments against the loan amount. If you are also going to apply for a Gold Loan and are worried about this question, you should stop it as we will be telling everything about the situation when you are unable to pay the Gold Loan due to some unforeseen circumstances. If you want to have no doubt remaining in your mind, keep reading the post as we will explain everything. Steps that Gold Loan Lenders Take On Non-repayment As you know lenders provide Gold Loan at affordable interest rates ranging from 10% to 16% per annum. To repay the loan via flexible repayment options, customers get a tenure of 12 months to 84 months. But when the loan is not paid for a long time, customers will have to face some grave consequences. We are showing all the possibilities that can happen if you don’t pay a Gold Loan on or before the due date. Lenders will send Reminders and Legal Notice If a customer happens to miss three consecutive repayments, lenders send reminders about the repayment via various methods such as letter, call, SMS, email, etc. Till this time, the customer has the option to reset your repayment schedule if the lender agrees to. If the payment has not been made even after the reminder, the next option is the Legal Notice which will comprise information about the due amount, auction of gold, etc. Lenders will charge Penal Interest Lenders also charge additional interest on the loan overdue amount. This interest is known as the Penal Interest. The interest rate is over and above the normal Gold Loan interest rate. For example, if a customer has failed to pay the loan amount with interest and other charges on the due date or within the grace period given, lenders will charge a penal interest on the due amount. Due to the added interest, the repayment amount would be higher as compared to normal Lenders can auction the Gold If a borrower still hasn’t repaid the Gold Loan amount, the last stop is to make an Auction of the Gold Ornaments. The lender has all the right to sell or dispose of the ornaments in the Public Auction. The lender will do it only as a last step when the customer is not contacting the lender about the loan. The lender also informs the borrower about the auction date before the few days it is going to happen. Negative Impact on your Credit Score A lot of people have this misconception that credit score remains unaffected from a Gold Loan which is not true. Your credit score can be affected either positively or negatively after you have opted for a Gold Loan. Credit score will improve on paying the dues on time whereas it may affect negatively if you are not doing repayments on time. Continuously missed repayments can affect your credit score badly.
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If you want to apply for a Fullerton India Personal Loan successfully, you need to take care of a lot of things. Here, in this article you will know how to apply for Fullerton India Personal Loan without making any mistake, so your loan wouldn't be rejected. Take a look at the article below.
First Step Do Check Fullerton India Personal Loan Eligibility Before making any action, you should check whether you are an eligible applicant for the loan or not. Because if you don’t do the loan request might get rejected. The following is the criteria which you have to meet to borrow a Fullerton India Personal Loan -
Second Step Know What Amount You can Borrow To find the eligible Fullerton India Personal Loan amount, you can use the eligibility calculator. Follow these steps below to use the tool.
To understand it better look at the example below. For Example: Riya wants to apply for a Fullerton India Personal Loan, she lives in Delhi and has a work experience of 2 years, aged 26 years old. She works in a corporate office and earns a monthly income of INR 35,000. To find how much she can borrow, Riya used the Fullerton India Personal Loan Eligibility Calculator according to which she can borrow up to INR 11,27,088. Third Step Know Your Documents You don't want your loan request to be rejected due to a minor mistake such as lack of documentation. So check out the pointers below to know what are the documents you might need during the loan process. KYC Documents
Income Documents
Address Documents
Note: Address documents may not be required at times where the applicant lives with his family as the utility bills will be on the name of any member such as parent or spouse. The company is liable to accept the address prof in case, you apply for Fullerton India Personal Loan jointly. So, these are the 3 steps which you need to follow when you are applying for a Fullerton India Personal Loan. To apply, you can either go to the bank branch or visit the official Fullerton India website. When the Fullerton India Personal Loan is approved you will be notified via mail or message on your registered email and mobile number. The most often asked question by the individuals who apply for a Home Loan through Pradhan Mantri Yojana is what is the process to get subsidy in their accounts and how much time will it take? Everybody wants to enjoy the benefits as soon as possible. But before knowing the process, it’s important to know what Pradhan Mantri Awas Yojana is Well, a lot of individuals cannot afford a home in our country. And, to encourage people from the Economically Weaker Section and Middle Class living in the Urban Areas to buy their own houses, the government of India launched this scheme.
The primary aim of this scheme was to provide ‘Affordable Housing for All’ by the year 2022 and launched in 2015. The most important thing about this scheme is that it is only for those customers who are buying their house for the first time in their lives. So how do people get benefit from it? Well, individuals get a certain subsidy on the interest part of their home loans and this varies from one individual to another according to their income slab. In this article, we will cover everything related to the process through which individuals can get the subsidy in their accounts. So, keep reading to know more. Highlights of Pradhan Mantri Awas Yojana Before getting to know the subsidy process, it is important to know some of the prominent features of Pradhan Mantri Awas Yojana or commonly known as PMAY. We are showing some of them below. Have a look.
How to Get Subsidy on Pradhan Mantri Awas Yojana? Now you have sufficient information about the PMAY, it’s time to know about the process with which you will get subsidy into your home loan account. You should keep this in mind that it takes usually 3 to 4 months to get the subsidy into your account. The reason: First, the government verifies all the details provided by you for the verification purposes, and then only releases subsidy. As soon as an individual applied for Pradhan Mantri Awas Yojana, he or she receives a unique application ID through which the status of the CLSS can be tracked. You only need to visit the CLSS Awas Portal (CLAP). There, you will see a few steps such as Generation of ID, Due Diligence by the Lending Institution, Claim regarding the subsidy, Claim Approval, and Subsidy Release. An applicant can see the subsidy in his or her Loan Account Statement. The best thing about it is your EMI amount will be received than before. You must be thinking how? Well, let’s understand this with an example. Suppose an individual coming from MIG-2 opts for a Home Loan of INR 40 lakh. He will get a subsidy of INR 2,30,000. So, after receiving this amount, the loan amount will be reduced to INR 37,70,000. So, the new EMI will be according to this new loan amount. When we talk about the top popular banking products in the market, the credit card comes among the top ones among customers.
But choosing the right credit card can be a crucial task in an individual’s life. The reason is the efficiency of the credit card as it lets customers pay for the purchases without cash. For example, if you want to buy something but don’t have the required money, for now, you can buy it with a credit card. American Express Credit Card is one of the popular credit cards among the customers. The reason behind its popularity cannot be summed in one word. In fact, there are several reasons that make an American Express Credit card so popular among customers. Some of them are Flexibility in payments, EMI Conversion of Big Purchases, Building your credit history, etc. American Express offers different types of credit cards to customers and that’s why it is important to choose the right credit card for you. In this article, we will tell you about how to choose a suitable American Express Credit Card so that you can enjoy all the amazing benefits of it. We are showing some of the methods by which you can choose the right credit card for you. Have a look. Checking the Credit Limit Every credit card has a predefined limit on your credit card that tends to vary from one card to another. Before choosing the right American Express Credit Card, it is important to know your card limit so that you can keep your overall balances under control. If you keep your credit utilization ratio below 50%, lenders see it as a creditworthy behavior and your credit score affects positively by this. Also, if you don’t want to go beyond the predefined credit limit, make sure to do regular payments of your credit card on or before the due date. Check the Credit Card Fees American Express asks for a fixed joining and annual fee on its card that varies according to the type of card you are going to choose. Other than this, American Express also provides several milestone benefits with which you can get your annual or joining fee waived off. So, if you cannot afford a card with high cost, look for one that can give you such offers. Credit Card Interest Rates It’s also important to check the interest rates that your credit card charges on the transaction made by you. Usually, every credit card offers an interest-free period that ranges from 30 to 50 days. If you will not pay the dues on or before the due date, the American Express Credit card will get charged with a certain interest rate. Spending Habits An American Express Credit Card can provide offers to customers in several categories such as Travel, Entertainment, Shopping, Movies, Dining, etc. So, when you are looking for the right card for you, it is important to choose a card that can complement your lifestyle. For example, if you are someone who loves to shop but chooses a credit card that provides offers on Movies, it will be of no use to you. So, always choose an American Express Credit Card that suits your spending habits. Personal Loans are undoubtedly one of the most popular loan options in the market among customers. The reason: personal loans help customers in fulfilling their various financial needs such as marriage, travel, wedding, down payment of your home loan, etc. But do you know that lower personal loan interest rates can help you lower the repayment amount? Well, if you didn’t know this yet, don’t worry. Personal Loan interest rates directly affect your EMI amount via which you repay your loan amount.
That’s why customers always try to look for the lower interest rates so that they don’t put much pressure on their pockets. But there is one important thing that you need to know - Personal Loan interest rates depend on several factors such as Applicant’s age, Monthly Income, Employment Type, Job History, Residing Location, and most importantly, Credit Scores. But there is one another facility provided by lenders in which personal loan interest rates hold great importance. This facility is known as the Balance Transfer Facility. In this article, we will cover several things related to this facility, how much money can an individual save by opting for this facility, and what is the role of the personal loan EMI Calculator. So, keep reading. Role of Personal Loan Interest Rates in Balance Transfer As you know personal loans are considered to be unsecured loans and this is the reason lenders charge a high-interest rate on this facility so that they can reduce their credit risk. So what does the Balance Transfer facility do? Well, suppose you have an existing personal loan but you are feeling that the personal loan interest rates are a bit higher and you want to opt for a lower one. So, with this facility, you can easily transfer your outstanding principal to another lender at lower interest rates and save on EMI amount and interest outgo. But, there are a few things you should know before opting for the Balance Transfer facility. First, lenders charge a certain processing fee on this facility. It can either be a flat fee or a certain percentage of the outstanding amount. Remember, this fee varies from one lender to another. Second, lenders check your credit score to see your repayment behavior. Any missed repayments can delay your personal loan balance transfer. Now, let’s see how much money an individual can save by opting for lower personal loan interest rates with Balance Transfer. Let’s say an individual has a 5-year personal loan of INR 8 lakh at an interest rate of 15.99% per annum. Now after paying the EMI amount of INR 19,450 for two years without any fail, he wants to opt for a Balance Transfer at lower interest rates of 13.99% per annum. Total Interest outgo at interest rate of 15.99% per annum = INR 3,67,012 Interest paid till 2 years = INR 2,20,120 The principal outstanding balance at the end of 2 years = INR 5,53,315 New EMI amount at an interest rate of 13.99% per annum = INR 18,908 Interest outgo at new interest rate = INR 1,27,384 So, the total interest paid will be = INR 3,47,504 So, the estimated EMI savings will be = INR 542 per month (19,450 - 18,908) Similarly, the estimate interest savings will be = INR 19,508 ( 3,67,012 - 3,47,504) So, it is quite clear how choosing a lower interest rate of 13.99% per annum, an individual can save INR 542 per month when it comes to the EMI amount and INR 19,508 in the interest amount. All of these savings can be done only with the Balance Transfer facility. All of these calculations can be done by the Personal Loan EMI Calculator. Just put a few details into it, the tool will provide the results instantly. |
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Anika Sharma
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