Gold Loan

Gold is the traditional Asset class. And India is word’s largest consumer of Gold. Every year, Indians import hundreds of tonnes of Gold. But up to know, the Gold Loan market was highly un organized. But recently, Private Banks of India like ICICI & HDFC have entered into this highly un organized sector.

SBI (State Bank of India) has also entered into the Business of giving Loan Against Gold.

So How Gold Loan Works?

Well, according to the current laws, you can get a loan up to Rs.10,00,000 (10 Lakh) & Up to 80% of the market value of your Gold.

You can just go to your nearest Bank branch and give your ornaments to them and get a loan within 24 hours.

Advantages of Gold Loan -

- Easily available

- No Income Proof required

- Low Income or disqualified for traditional loan people can also avail this Loan.

- Quick Approval

Why Gold Loan? -

Have you ever think that Why Banks prefer Gold Loan? Well, because you can get loan against any Asset such as Stocks, Bonds, Real Estate, Businesses and thus Gold. Gold is an Asset.

The main logic behind entering into a loan against gold business is, because in India, the Gold is very precious metal class. People love this Asset class since centuries and thus if the people will take loan against Gold ornaments, they are less likely to default because they have very much attraction to the Gold.

Another thing is that, In India, Taking a loan against Gold is a family decision in countries like India rather than an Individual decision. So people will only take a loan against Gold if they know that they are not going to default.