CNIC Information System with Pakdata Cf In Pakistan
Gold loans unlock the value of your gold
1. Unlock the value of your gold
Availing of gold loans have been a practice prevalent in India for generations.
In today’s times when the value of gold is at an all time high is when it makes
more sense to monetise it in a time of need. This trend was prevalent mainly
among the agricultural classes and the low income groups but is now catching
up with the higher income groups and salaried classes as well.
Gold loan companies like Muthoot Fincorp have modelled their products to
effectively service the salaried classes with EMI schemes etc. now even higher
incomes groups are choosing to avail of the liquidity from gold loans, thereby
unlocking the value of the gold that would normally be in a safe locker. These
gold loans cost much less than personal loans.
Seeing the potential of this market, public and private sector banks have also
jumped on the bandwagon. Reports say that the organised gold loan business
in India grew at a compounded annual growth rate of 40 per cent between
2002 and 2010 and the gold stock in India grew at 22 per cent in the same
period.
What is a gold loan? It is a loan against gold which is available quickly and
easily. Any other form of loan would require documentation and hence lots of
time. Whereas gold loans are available over the counter and in ‘just 3
minutes’- as some of the advertising boards of companies like Muthoot Fincorp
scream. Loans are available for up to 80 per cent of the value of the gold and
interest rates hover around 12 per cent.
Do not take loans to purchase a fashion accessory or cell phone. Keep in mind
the interest you are paying. Gold prices are at an all time high. Predictions are
that they are slated to go higher. Since the borrower faces no threat in the
event of a price rise, there is no need for worry. Most reputed lenders are
under the supervision of the RBI, hence no fear there too. Pick a lender with
repute and one that has been in the business for a long time.
