The New Gold Rush ; Need Money? Just Pledge Your Gold with a Bank to Get Up to 80 Per Cent of Its Value at 12-15 Per Cent Interest.
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Summary
A day before Anuja and Mohan Ghadi could take possession of their new flat in Mumbai, they discovered that they were short of Rs 50,000. Instead of going to a moneylender or pawn shop, Anuja's jewellery came to their rescue as she walked into her bank to borrow against the value of the gold. Says she: "Initially, I thought I would have to borrow from the local moneylender at 36 per cent rate of interest."
The idea of pawning gold jewellery for money may not be new, but now banks are discovering that it makes business sense to lend against a secure asset like gold. As interest rates refuse to come down and consumers find it tough to get loans, risk-averse banks have come up with an innovative solution. Having burnt their fingers with retail loans like personal and business loans, which come with no collaterals, the idea of gold loans has captured the imagination of banks and non-banking finance companies (NBFCs) alike.See the full content of this document
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The New Gold Rush ; Need Money? Just Pledge Your Gold with a Bank to Get Up to 80 Per Cent of Its Value at 12-15 Per Cent Interest.
Offered at competitive rates, ranging between 12 and 15 per cent, this is most certainly a win-win product for both lenders and borrowers. While a gold loan offers safe collateral to the lender on one hand, it offers the consumer low rates, as personal loans come ...
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