Muthoot Finance to SBI, interest cost can differ widely for gold loans

Interest rates can range from around 10 per cent to 26 per cent, so do check what various players are willing to offer you

* Banks and NBFCs can't give a loan-to-value ratio of more than 75 per cent

* Choose a tenure that suits your repayment capability 

* Banks are likely to offer you a lower interest rate, but NBFCs may provide faster disbursal and ask for fewer documents

* Understand the repayment mechanism—whether it will be in the form of EMI (suits the salaried), or you will have the flexibility to repay principal when you have funds (better for business class), or repay both interest and principal at the end of the tenure 

* Check if the lender levies a prepayment penalty 

* Generally, your jewellery has to be of 18-22 carat or above. Value of gems studded in the jewellery may not be considered while deciding the loan value. 

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