Yes, we all are suffering from the pandemic covid-19. The thing has started in the year 2019 year-end and has spread almost in all the countries, claiming the lives of over 30 lakh people worldwide. Along with the prayer, it is the time to fight the situation collectively and make some ways to so that all the others financially stand out and cross this time.
In the same way, the gold loan has come as a boon into the picture. On one side of the coin, there is a need to bring more flexible norms in the financial sector, while on the other side of the coin, the implementation of it is required to become fruitful for everyone. Maybe some financial assistance is needed while a shortage of fund for any personal expenses or the requirement of setting up a small business, a gold loan will be a better option where the rate of interest and payment flexibility is also required.
Most of the banks and NBFCs offer the loan against gold at a starting rate of 7% onwards, while on the other side of the coin, the other loans are hovering from the starting high of 9% onwards.
For example, few banks like state bank of India is offering the gold loan at the rate of 7.50% while the Canara bank 7.65% onwards. The federal bank gives it from 8.50%, while on the other side of the coin PNB gold loan is at 7.85%. The first rank bank that is the HDFC offers a gold loan interest rate of 8.95%.
There is always a requirement of cash or money to bridge the gap of the condition as the gold valuation is done based on the gold loan per gram. Nowadays, there has been a massive change since the last one and a half years in the banking and the financial industry. Regarding the education sector, there has been a where people are facing an acute problem while meeting the requirements of the school or the college fees or other related expenses which most of the bridging can be done by gold loan.
Gold in the form of jewellery is available in almost 80% of the people of India. So it is readily available and thus easily can be availed for the gold loan where the rate of interest is low, documentation is less, and the procedure is simple.