Gold- the most liquid form of the asset after cash that can help in alleviating economic distress in times of crisis when people face an acute shortage of cash and suffer from financial insecurity due to the absence of liquid cash. Gold is generally kept as security clearance in the lockers of the individuals until the perfect time arrives to encash them, by selling them in the market and getting a hefty amount of money in return which is equivalent to the value of gold that has been stored away as a liquid reserve.
Thus financial banking sector organizations have come up with the unique idea of using gold as a means of encashing a hefty amount of loans from the banks as they are not only a safe form of the loan-bearing instrument but they also act as a safe and steady form of investment with people regularly spending a significant amount of money on the purchase of gold and associated necessities.
ICICI Gold Loan is one of the premium gold loan facilities in the market addressing the economic concerns of individuals and bringing about fluency in the process of economic exchange and other forms of monetary transaction. Gold Loans are generally a type of security deposit and collateral security loan facility that can be availed when the interested borrowers decide to keep a significant amount of gold with the bank and cash the equivalent amount of money from the bank by keeping the loans as deposits.
After the repayment procedure of the gold, the loan has taken place the borrower can take back the gold ornaments and jewellery which he or she had kept with the bank as a form of security deposit. Gold Loans facilitate easy denomination of cash currency by ensuring that gold can easily be transferred into liquid cash amounts that can be used by the borrowers to make large scale purchases and address the financial concerns of the borrower who might be an enterprise owner.
Thus gold loans must be utilized judiciously thereby complying with the fact that ICICI Gold Loan facilities help in strengthening the financial structure of our country.