The money can be easily obtained from the bank through a gold loan when needed. Figures for the fiscal year ended March indicate that people’s confidence in gold loans has increased compared to the previous one. According to the latest data, gold loan amounting to Rs 60,464 crore for the fiscal year ended March 31 has been issued. This is more than double the previous financial year. 26,192 crores of gold loan was issued in 2019-20.
According to the new figures, the highest gold loans have been taken from State Bank of India, Bandhan Bank and many banks in South India. Statistics for the State Bank of India show that gold has been issued more than 6 times in the last financial year. As on March 31, SBI had issued gold loan worth Rs 20,987 crore. However, State Bank of India is only 2 per cent of the total loan book.
CS Shetty, Managing Director of State Bank of India, said, “We worked for a gold loan facility. Growth is expected to slow this year, but we expect an additional business of $ 10 billion in the financial year 2021-22. Last year, debt rose faster than gold, but other sources saw a sluggish effect.
The RBI governor told private banks that various financial services, including loans to people, have continued
The rise in prices is a major cause
Ashutosh Khajuria, executive director of the bank, said the rise in gold prices was the main reason for the hike in gold borrowing. Prices are up more than 8 percent compared to the previous year. “Gold will not go up if the rupee is strong, but once the rupee is weak, it will look.”
Managing Director of the Catholic Syrian Bank, says, “We have been able to reach new customers through the corona epidemic.” Gold loan is a favorable scenario for the bank and borrowers.
Learn how to reduce pocket costs, even after insurance
Learn the important things before taking gold
1- Before the loan, always remember that your gold should not be less than 18 carats, because many banks do not offer less than 18 carat gold.
2- Aadhaar or PAN card is mandatory to take gold loan. It serves as your identity card.
3- As a general loan, gold is issued for different periods. The general gold loan is offered by banks for 3 to 36 months.
4- Always try to get gold loans from public sector banks. Because the interest rate here is low.
