With the coronavirus pandemic hitting India in the last days of 2019 and continuing to worsen the situation in 2020 and 2021, the Indian economy went for a nose-dive in April 2021 when the whole nation went for a complete lockdown. With hundreds of people losing jobs every day and the Micro, Medium, and Small Enterprises suffering to manage their op-ex (operational expenditures), people started seeing a loan as their ultimate savior in such a situation. When contrasted with a personal loan, a gold loan shined better because of multiple reasons such as no eligibility barrier because of low FICO scores or high rates of interest, etc. Today in this article we are going to see what is meant by the notion of “Renewing the gold loan” and how to do it.
What do we mean by the renewal of a gold loan?
Let’s assume you have a current gold loan with a moneylender. When you have reimbursed your loan sum in full, alongside the interest, you can take out one more gold loan with a similar moneylender, promising similar gold resources (or new ones, contingent upon your need).
How is gold loan renewal different from a gold loan extension?
Renewing a gold loan is not the same as a gold loan expansion. In an expansion, you approach the bank to expand the gold loan reimbursement time on your current loan. For example, assuming you have taken a gold loan for a very long time yet can’t reimburse the sum in full toward the finish of the term, your money lender might permit you to broaden the gold loan reimbursement period by a couple of more months. Conversely, when you renew a current loan contract, you get a new loan sum as of now or better financing costs, contingent upon your reimbursement history. Gold loan renewal is an extraordinary choice for you to use the current relationship with your bank and get monetary help for your necessities.
Benefits of taking a gold loan renewal
- More negotiation powers
A current relationship with the moneylender gives you many benefits while renewing a gold loan. You will currently have more arrangement power when contrasted with your first gold loan application with another moneylender. You can use your relationship to get lower financing costs on your gold loan renewal, better length, and different advantages.
- Familiarity with the policies of the lender
Renewing a gold loan accompanies the upside of commonality. You are now mindful of the various agreements of the moneylender. The moneylender is likewise mindful of your monetary circumstance, reimbursement limit, and as of now approaches every one of your archives needed for the gold loan. This implies that your loan will be endorsed quicker since all the due tirelessness has effectively been finished.
- Instant sanction of the amount
The amount this time is sanctioned immediately without any delay like for the first-time customers. You can use the online gold loan emi calculator by Rupeek to calculate your monthly EMI and hence plan your repayment beforehand.
- No time to be spent on evaluation of assets and KYC again
Since you have already completed all the formalities, there’s no need to spend any further time repeating all those steps and formalities again. You just need to sign on the paper agreeing for a further loan renewal, and that is pretty much it!
How to use Rupeek to renew the gold loan?
Rupeek is one of the best online gold loan lenders. It charges starting at 0.49% per month of interest. You can apply for a gold loan renewal with Rupeek by simply using your credential id on your Rupeek gold loan card. You can call the 24×7 available customer services for any help regarding this, or you can simply log in to the app or website and apply for a renewal of the gold loan.