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Which is better housing loan or gold loan?
A home loan top up interest rate is cheaper than a gold or personal loan. This is because a top up loan interest rate is only 0.5\% to 1\% higher than home loan interest rates. At this moment, a home loan interest rate is as low as 8.3\%-8.4\%. This means home loan top up interest rate would be 8.8\%-9.4\%.
Does gold loan affect home loan?
Notably, financial institutions do not see the delayed payment of secured loans especially Gold Loans as negatively as delayed payment of other unsecured loans is seen. Further, the interest rate on other unsecured loans may be higher than the gold loans.
Is gold loan is safe?
Not checking creditor’s credibility: A gold loan is a secured loan, which implies that it is protected by collateral (gold in this case). This collateral remains with the creditor or lender till the loan amount is completely paid off. This is a good way to provide security to a creditor but what about the borrower.
Do banks give gold loans?
Banks and other financial institutions in India offer gold loans, the loan amount for which ranges from Rs.1500 to Rs.1.5 crore. The repayment tenure of these gold loans ranges between 7 days to 240 months.
Are gold loans beneficial?
The shorter loan tenure that gold loans offer can be stressful, especially if you get a loan with a high interest rate. But for borrowers confident that they can pay off their loan in a short amount of time, the short tenure of a gold loan can prove the more cost-effective option in the long run.
Can I get tax benefit on gold loan?
To meet these expenses, you can avail a loan against your gold assets and consequently reap tax benefits on gold loans. Under Section 80C of the Income Tax Act, 1961, you can avail tax deduction against a loan for home improvement. This deduction applies to the principal amount and is capped at Rs. 1.5 Lakh in a year.