The nation wide lockdown due to the ongoing coronavirus crisis had caused complete havoc. Although it was initially implemented meant for the safety and well being of the people, it ended up affecting the small and medium enterprise businesses profusely. Many people lost their jobs and have been facing a cash crunch for months now.
In such a scenario, gold loans have been extremely helpful and beneficial. Gold loan is a secured and profitable option for consumers possessing gold reserves. These loans are provided by the banks and the Non-banking Financial Companies (NBFCs) for letting the consumers meet their immediate financial requirements without any trouble. Many people have turned up to the gold loan companies to raise money against the precious metal.
During the lockdown and now as the lockdown has been lifted, gold loans have come to rescue to fulfill the necessary requirements. There has been a visible demand for gold loans during this ongoing crisis. The gold Loans come with striking features as well. The gold loan interest rates are very low in comparison to other credit forms. It is a 100% secured loan and this is why the lendres don’t hesitate while giving away the loan at a low gold loan interest rate. Your credit history is not an issue.
All you need is gold of quality varying from 18 Karat – 22 Karat or above. The borrower can compare the gold loan per gram rate and apply for the gold loan accordingly.The other simple requirement of the banks and NBFCs is your KYC documents. Once the document verification completes, your loan amount is processed within 40-60 mins.
Now that the lockdown is over, but the employment opportunities are constrained.People can think of starting their own business. That would require initial finance which can be easily availed from banks or NBFCs against your pledged gold.“Recycling and collateralized loans against gold may be expected to grow exponentially in the next few quarters,” said P.R.Somasundaram, managing director for India,at the world gold council, in an interview given to the Mumbai mirror.
Thus, gold loans have seen a hike during the COVID-19 crisis and is in every way a good deal to fulfill the immediate financial requirements and business setup.