GOLD Loan – Gold loans (or gold deposits) may be undertaken to obtain an income return on gold. The gold that is placed on loan (or deposit) may be either monetary or non-monetary gold. The gold need not be backed by any monetary or non-monetary collateral. The gold will remain in the books of the gold lenders ( NBFCs like Muthoot and Manappuram, and Banks like HDFC) as on-sold basis.
Rise in Gold prices have increased the disbursal of Gold Loans in the middle and upper middle class. With changing times working women are becoming financially independent and taking active part in decision making process. They are working in unison with their husbands to ensure a bright and secured future for their family. As the couples are well employed, they sought to return the principal even within a month of receiving their salary. They are now using such loans (whose tenures are typically up to three or six months) to finance their children’s education, (particularly for meeting donation demands), which a bank will not entertain, car purchases, holiday trips or even to put up margin money for a home buy.
Why Gold Loans?
Because
1. Continuous Increase in Gold prices
2. Interest rates of loans are lower than that of unsecured loans ( Personal Loan)
3. Cash crunch arising out of global slowdown
4. Fast and easy option to obtain loan from NBFCs (Non-Banking Finance Companies) as well as Banks to meet short-term financial requirements
Gold loans (or gold deposits) may be undertaken to obtain an income return on gold. The gold that is placed on loan (or deposit) may be either monetary or non-monetary gold. The gold need not be backed by any collateral. The gold may remain in the books of the gold lenderas on-sold basis.
Rise in Gold prices have increased the disbursal of Gold Loans in the middle and upper middle class. Couples are now using such loans, whose tenures are typically up to three or six months, to finance their children’s education, (particularly for meeting donation demands, which a bank will not entertain), car purchases, holiday trips or even to put up margin money for a home buy.
Why Gold Loans ?
Because
-Continuous Increase in Gold prices
-Intrest rates of loans are lower than that of unsecured loans
- Cash crunch arising out of global slowdown
-Fast and easy option to obtain loan from NBFCs( Non-Banking Finance Companies) as well as Banks to meet short-term financial requirements
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