Availing on a gold loan is one of the most common things among common people. Gold loans are provided by almost all banks as well as by non-banking financial companies, also known as NBFCs. Gold loans Require you to provide collateral which is the gold in your possession, either in coin or bar form. The bank will provide you the money based on the price of the gold, which you have to pay back to get your gold back. Gold loans today are very common among people who cannot afford a basic necessity.
Gold prices today decreased by Rs 1000 in two days. Gold and silver have been struggling in the market for some time now Gold prices in February were down by 0.2% per 10 grams. In the past, gold prices have also decreased by as much as 1.8%.
In the International market, gold prices have been reduced by 0.2%. This decrease in gold prices has automatically changed the rates of gold loans. Gold loans involve producing collateral or assets for the bank. The bank decides the loan amount based on the price and demand. The decrease of the gold rate makes it difficult to set a proper rate of gold loans.
Currently, gold traders are looking to European Central Bank to provide them with a new monetary policy. The current pandemic brought by Coronavirus has also had some part to play in this difficult time.
Gold has been seen to lose its price after August. This happened when it reached a price of Rs. 56,200 per 10 grams.
However, despite these changes, gold prices have been higher this year than most years by at least, 20 percent. Gold loans continue to be the most common loans taken by people this year and have kept all the banks and non-banking financial companies in a good mood.