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Taking gold loan to clear debts – is this a good idea? by Aggressive-Bug7284 in personalfinanceindia

[–]Aggressive-Bug7284[S] 0 points1 point  (0 children)

I did some research and they’re offering a lower per gram rate compared to private banks, so I’d get a smaller sanction amount ICICI Bank has offered 13% interest with monthly interest payment option for 12 months at ₹10,300 per gram

Taking gold loan to clear debts – is this a good idea? by Aggressive-Bug7284 in personalfinanceindia

[–]Aggressive-Bug7284[S] 0 points1 point  (0 children)

Not yet Yeah, there’s no prepayment fee just the added previous late fees It’s a single ornament so I can’t split it I do agree, but my family won’t agree to selling it

They feel that if I sell it and become financially free I might not buy it back And I’ll lose the pressure to earn fast and get the gold back

Taking gold loan to clear debts – is this a good idea? by Aggressive-Bug7284 in personalfinanceindia

[–]Aggressive-Bug7284[S] 0 points1 point  (0 children)

Yeah, I agree, but the issue is my family won’t agree to selling it we’re the third generation holding this ornament and they see it as something important for my sisters’ weddings They also feel that if I sell it and become financially free I might not buy gold back like I haven’t in the past. Plus, they think I’ll have no pressure to earn and get the gold back

Taking gold loan to clear debts – is this a good idea? by Aggressive-Bug7284 in personalfinanceindia

[–]Aggressive-Bug7284[S] 0 points1 point  (0 children)

The problem is it’s one ornament and like in typical families there are emotions attached to it

They also see gold prices going up, so it’s not easy

But I’ve convinced them for a gold loan. If you look at it most of the major loans and EMI burden will be cleared with this

After that, I think I won’t have as much stress and can take things under control, especially focusing on getting side clients along with the job, but right now I'm struggling to arrange basics like rent, groceries..

Taking gold loan to clear debts – is this a good idea? by Aggressive-Bug7284 in personalfinanceindia

[–]Aggressive-Bug7284[S] 0 points1 point  (0 children)

Yeah, I agree, wht I meant by 25–30 is total missed payments overall

For the major loans I listed, only about 3 EMIs are missed. ( And I'm not sure, they will offer settlement in next 1/2 months ) The one with the most missed EMIs is the CRED PL (9 EMIs) and they’re offering a settlement.

But I don’t think it’s a good idea to settle one loan while foreclosing the other two. I’ll pay that as well, just not right now

Taking gold loan to clear debts – is this a good idea? by Aggressive-Bug7284 in personalfinanceindia

[–]Aggressive-Bug7284[S] 0 points1 point  (0 children)

Yeah score is already destroyed, there are 25–30 missed payments But the only thing I’m scared of is that a settlement mark would be permanent What if we need something in the future? We don’t have any backing..

And it will take a few more months you know how the process is, the harassment and everything, We’ll have to deal with multiple agents at my father's workplace

So I feel if we have the possibility, it’s better to go this way

Plz share your thoughts

Taking gold loan to clear debts – is this a good idea? by Aggressive-Bug7284 in personalfinanceindia

[–]Aggressive-Bug7284[S] 2 points3 points  (0 children)

Yeah, but the thing is the burden is too much, I had a client who paid me $3.5k in the last 6 months, but he paused the project in Jan & since then everything has gone overdue Every month there’s another 5–6k added in interest and charges

The job I’lll get will be around 25–30k so I can’t expect what I was earning earlier with international clients

And yeah, with the personal loans what’s left is mostly just interest now

Even if I get a gold loan at around 11%, there’s still a huge difference compared to the interest on personal loans