Gold loan is certified by accepting the gold ornaments of the client as the pledge. The personal loan is certified on the basis of income and repayment capacity of an applicant.
It is true that Gold loans, like credit card borrowings or personal loans, are often used for short-term domestic requirements.
Gold loans have become a basis for the making of new financial products such as loans for purchase of gold wherein gold is bought on the date of the loan and held as a pledge until the compared monthly instalments are paid.
India is a vast loan market. The thought of Gold loans is not a new phenomenon to the Indians. Loaning against gold has been in vogue since the beginning of the process of lending.
The source dates back to some centuries when it was used as the main commodity of exchange in the system of barter and trade.
Gold loans are attained through banks or other Non-banking financial institutions that specify in such loans. Usually, 80% of the total market reigning cost of the gold is provided.
At the end of the payment of the principal amount along with the necessary interest, the borrower is allowed to recover his assets in the same state and same weight. Advantages of taking the gold loan-
Transparency, no hidden charges whatsoever, Low-interest rates, no foreclosure changes, no part payment charges, Part release facility, no charges for gold security, flexibility in repayment, doorstep service to process the loan, less processing time, total Convenience.