Traditionally India has always been imperious with the use of gold jewellery and ornaments, gold ornaments being the principal item of conspicuous consumption and the perfect example of an item that can be intensely verified with the Veblen effect depicting the urge of the consumers to buy gold and show off to the public.
Thus with the increasing importance of gold, Gold Loan facilities have become predominant in the financial marketing structure in the country thereby encouraging interested borrowers to take more loans and regulate the flow of credit in the country. Gold Loan refers to those form of loans that are availed by the interested borrowers by keeping a percentage of their assets in the form of gold ornaments and jewellery to the bank as collateral security deposit and then availing a loan which is equivalent to the value of the gold which is kept in the bank as a deposit.
ICICI Bank Gold Loan Option ensures that the person can save a significant amount of money on hidden charges by availing of gold loan facilities from the bank. ICICI Bank offers cheap and attractive rates of interest on loans that are secured by keeping gold deposits in the bank.
With a quick redressal mechanism and easy verification of the documents submitted by the borrower to the bank authorities the gold loan facilities help the interested borrower by providing them with the opportunity to transfer the loan amount within 24 hours thereby encouraging the borrowers to make large scale purchases and invest money on buying an expensive yet necessary item which costs in the range of a high amount that cannot be salvaged only through a personal loan.
After the payment of the personal loan, the collateral security is taken back by the interested borrower but if he or she is unable to pay back the principal amount in time the bank would freeze his or her account and seize the asset lying with it.
Thus it is critical to utilize Gold Loan facilities judiciously since they can be used in overcoming large-scale financial issues and problems.