During the Corona period, the price of gold is touching the sky, seeing that lenders now want to take advantage of this opportunity. Some lenders have started new gold loans with the hope that it will become the fastest-growing segment in this financial year. People are in need of cash to resume their business after the lockdown, they are looking for a loan against their gold jewellery, as gold prices are around Rs 50,000 per 10-gram in the retail market. A personal loan can be taken in lieu of gold. A gold loan is a secured loan and a cheaper loan can be obtained at a lower rate of interest than the market rate.
There is not much documentation in Gold Loan and your credit score does not matter because you are depositing gold first for the loan against the loan. In recent times, there are many gold loan companies and besides these, most banks are also offering gold loans.
Banks have also come forward like non-banking financial companies after seeing the trend in gold loans, banks have started gold loan verticals. His salary has been cut. A cash crisis has arisen in front of the people. That's why people are taking cash by pledging gold. Since it is easy to get a gold loan.