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FINANCE

People’s trend for taking a Gold Loan

Gold loan is considered one of the preferable loan options in the country. Gold loans allow people to borrow funds against their yellow asset by keeping it as a mortgage. Buying and owning gold is not only an investment option but also a sort of insurance for one’ retirement. It is owned by people due to a number of reasons, but mainly due to the fact that it has its associated auspiciousness in countries like India, where cultures and traditions drive the interest of the country’s people. Further, owning gold is also a mark of prestige and social status. However, no matter what reason it is, owning gold can be best utilized in times of financial crisis to generate funds in the form of gold loans.

Currently, the world is shut under lockdown due to the crisis that COVID 19 has brought upon us all. Due to the lockdown, the economy has come to a standstill. Everything is shut, be it the markets, schools, colleges, universities, religious places and even offices. Thereby, earning money has become a big thing to do, due to the pay cuts and lower-income of the organization, that is forcing them to fire their employees. However, for some people, the only way to survive and to let their both ends meet is their savings. This, however, is not advisable, as compromising with the savings over a long time could worsen the financial situation of everybody. In that case, what comes to rescue is the gold loan.

Many experts believe that borrowing loan against gold will increase during and after the lockdown. The reason behind the rise in a gold loan is that the increase in gold prices, due to the current economic crisis, will prompt people to go for gold loan, as a larger amount can be borrowed as per the increase in gold’s value. Also, the crisis prevalent in the market is not only for the borrowers but also for the landers, thereby, banks will prefer lending more of secured loans like gold loans, wherein they get something back with lending funds.

It is even believed that due to the jobs cuts and reduced cash flow, it is only the gold loans that can redeem society. Gold loans will be helpful for many who have the MSME registration, and those who find it difficult to meet their funding requirements. Even lenders won’t hesitate lending funds to businessmen with high-risk ratios if they prefer going for gold loans instead of business or personal loans.

Due to these reasons, gold loan lenders are assured of their withstanding in the market, even in the times of crisis. Many of them believe that the demand and convenience that gold loans are subjected to will help them overcome the financial threshold that the Corona pandemic brought to the markets. In this scenario, the lenders are taking appropriate measure to ensure that people do not find it difficult to avail gold loans due to the travelling restrictions and the fear of stepping out of the home. Thereby, many lenders have come up with the online gold loan facilities, where one can opt for a gold loan sitting in the comfort of their houses. Individuals who wish to opt for a gold loan can plan their gold loan EMIs and can know their gold amount eligibility, through various gold loan calculators that are available online.

With uncertain situations in the current scenario, people are showing different reactions. There might be a situation where it can seem like a halt. But no worry, even if you have no savings in the prior, a gold loan can act as a saviour in such times.

People need to realize that gold kept in the lockers of the house is residing for a long as idle asset. A gold loan is a smart form of investment and can render lots of value.

On the other hand, people can confuse between pledging of gold and selling of gold. Once the loan is repaid, the gold will be returned to the prospect. An online account will be set-up through which the payment can be made through the online portal with free insurance on customer gold.

The gold is safe and will be duly returned the same way it was received. Also, gold loans are quick, easy and hassle-free. Due to the current pandemic, the banks can offer relaxation in terms of the payment. Don’t hold yourself back and utilize the most out of your gold. So, we need to get worried. Do the research and make a final decision afterwards.

It is an excellent opportunity for first-time buyers. There will be a lot of hesitations and questions in your mind, and that is why we are here to clear everything about the same.

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