Indians love buying gold! We even have ‘Dhanteras,’ a day that celebrates buying gold. With Diwali and Dhanteras just around the corner, you can be sure that many are making plans on what to buy. But, people will also be planning ‘how to buy’, with many availing personal loans for gold purchases. However, is it really a good idea to use personal loans for gold?

Instant Personal Loans to Buy Gold

Up until six years ago, banks in India provided loans for the purpose of buying gold. The customers of the bank could use the loans to buy gold coins, gold bullion, gold jewellery, etc. However, on October 30, 2012, RBI prohibited the banks from providing loans to their customers for buying gold.

Still, the RBI policy  does not mean that people are not using loans for buying gold. You can borrow personal loans from banks and NBFCs for buying gold. Investing in gold is a trend that people have been following for centuries. But, whether you should invest in gold or not depends on your circumstances. However, you should know that the gold commodity market is prone to fluctuations and at times, unpredictable changes. As with any risky investment, gold investments can be fruitful if you hold on to them for a longer period. Moreover, in India, gold investments have a higher sentimental value attached.  

But, that does not mean that you should not avail personal loans for gold purchases. Personal loans rates are not very high rate, if you credit score is good. So, if you need instant funds for buying gold or jewellery, then instant personal loans are not a bad option. However, you should consider  your credit score and other loans you have availed to ensure that the EMIs and interest rate of the loan is manageable.

Buying Gold This Diwali

The festival of lights is upon us which means jewelers will be providing numerous lucrative offers on gold. In addition to gold jewelry, people also buy gold coins, statuettes of gods, gold ornaments for gifting, or for future weddings. Since, buying gold during Diwali is considered a good omen, you can take advantage of the offers on gold this festival season. It is probably the best time to buy gold, and if you are low on funds then availing instant personal loans would probably the best option for you. However, before applying for the loan, you should whether you are eligible, and ensure that your credit score is adequate. Additionally, calculate the EMIs and whether you would be able to manage the payments in a hassle-free manner. If you can get low personal loan rates and buy gold with it then it will be a Happy Diwali indeed!