Gold loan is not at all a new phenomenon to Indians. It was considered as the main source of lending and raising money from the earliest days of financing. The origins of gold loans are basically from the southern part of India. Moneylenders including Chettiars of Tamil Nadu, the Shroffs and Marwaris from other parts of India and landowners from different parts of the country have traditionally lent villagers money against their gold for marriages and other urgent requirements. For an individual, it was an easier way to raise loans in a very short time, and with minimum hassle while borrowing.
Banks and NBFCs are not concerned with why you avail the gold loan. You can avail a gold loan from any available lender/bank in order to finance various needs like a good education, a medical emergency going on a holiday, further investment and so on. The gold which is pledged with a bank or NBFC is the collateral against which the loan amount is provided. Nationalized banks, private banks and other financial companies offer this gold loan at attractive rates. Majority of people opt for gold loan for a shorter period to meet the requirement their requirements like education, marriage and other financial requirements within the family. Many also believe in the concept of ‘Why should you keep the gold idle at home or locker, when you can make use of it with the help of gold loans for meeting your financial needs’.
With the rise in gold rates the demand from companies and banks offering such loans has increased. Gold loan can be considered as one of the most affordable credit facilities that you utilize for any of your financial emergencies. There are several benefits on taking a Gold Loan: Transparency with no hidden charges, low interest rates, payment flexibility, no added part payment charges and extra charge for gold security. Many gold loan companies are currently offering you very decent interest rates. So, opt for NBFCs like Kosamattam Finance, in place of other loans, since the entire process is very speedy.
Am alfred.