A credit score plays a crucial role when you require money from the bank or lender. A low credit score can affect your interest rate, gold loan eligibility, loan amount, etc. The gold prices reach every day of the COVID-19 pandemic situation when everybody struggles with financial and economic hardships. People are going for a gold loan to get a higher amount to handle this situation. Well, the gold prices have gone past Rs. 50,000 per 10 gm recently, and the amount of the loan depends on your ornament and jewelry price. Before deciding, an individual must check the Gold Rate Today and interest rate of the bank. Banks or non-banking financial institutes provide the loan amount of up to 90% of the entire gold value.
A higher loan is not a better option to improve credit score, and you can score higher with the gold loan. Syndicate Bank Gold Loan also provides the lowest interest rate to its customer with a reasonable tenure.
So, the question arises, how can an individual improve their credit score? Well, several methods will help to improve your credit score
- Timely EMI payments It is one of the best options for a gold loan of its flexible repayment methods. Banks or NBFC offer several repayment methods of which EMI is popular among customers. The other methods are Upfront Interest Payment, Bullet repayment methods, interest payment at the end of the tenure. In EMI repayment methods, you have to pay a fixed amount every month for the repayment. This amount includes an interest rate and principal amount.
- The gold loan brings a particular credit mix Credit mix in the full profile also helps in improving the credit score of a person. This holds 10% of the overall weightage. The credit mix includes both secured and unsecured loans in your profile. In the gold loan, a person should pledge the gold jewelry and ornaments against the gold loan. That is why a gold loan helps individuals bring that specific credit mix into an individual’s profile. Suppose that you have a credit card in your name and you need instant money. The gold loan is a better option for you instead of a personal loan that is unsecured. So, your credit score will certainly improve by paying your loan amount on time and borrowing a gold loan. The gold loan provides the lowest interest rate as it requires collateral, and your EMI amount would be lower as well, which can help you repay your amount quickly. So, it's a better option to check the gold loan eligibility criteria of the bank.
- Early repayment of gold loan Gold Loans are typically considered loans with a shorter tenure that you will select consistent with your convenience. one of the efficient strategies to boost your credit score via Gold Loan is to create repayment before the pre-decided tenure. Many lenders don't invite any prepayment charges on a Gold Loan. After you clear away your gold loan with early repayment, this may replicate in your credit report and can impact your credit score altogether. So, if your finances enable you to create the Gold loan's early payment, this is often definitely one of the most effective ways to enhance your credit score.
- Use the loan EMI calculator to measure your EMI amount One of the efficient strategies to ensure that you pay your EMI on time is to stay this amount within your repayment capability. However, are you able to do it? Well, you ought to have an early estimate of the EMI quantity to understand whether or not this amount is at intervals your compensation capability or not. This could be done by victimization the Gold Loan EMI Calculator. It'll offer the EMI amount consistent with your loan quantity, Gold Loan rate of interest, and tenure. When you can have an early estimate of the EMI quantity, you may manage your finances better. An individual can also use the Syndicate Bank gold loan calculator to estimate the loan amount.
Conclusion: Lastly, the gold loan is an excellent option for immediate approval of the loan. It must check the bank's gold loan eligibility criteria and interest rate and select the bank according to your requirements.