What is the future of gold loan?

The World Gold Council expects the gold loans market to grow at an annual rate of 15.7\% and reach 4.617 trillion rupees in the fiscal year ending March 2022, from 3.448 trillion rupees in the year ended March 2020.

Why is gold loan important?

A Gold Loan can enable you to tide over unexpected financial setbacks, but it is vital to approach a lender that is governed by the RBI, such as HDFC Bank. Apply for Gold Loan today and fulfil your financial needs on your own like business needs, unexpected expenses, or bill payments.

What is tenure gold loan?

What is the Maximum Tenure on a Gold Loan? Gold Loans come with relatively shorter repayment tenures as compared to most other loans. Typically Gold Loan maximum tenure for repayment is 24 months in case of long-term loans repaid in EMIs, and six months in case of short-term loans repaid in a lump sum.

How does gold loan company work?

How Does a Gold Loan Work? For a Gold Loan, the bank takes your gold as collateral for the period of the loan. Banks charge an interest rate, and once you repay the entire loan, the bank returns your jewellery.

Is gold loan advisable?

Here are a few mistakes that people must avoid when getting a loan against gold: Not checking creditor’s credibility: A gold loan is a secured loan, which implies that it is protected by collateral (gold in this case). This collateral remains with the creditor or lender till the loan amount is completely paid off.

Is gold safe in gold loan?

Gold loan lenders grant loans on gold jewellery with a purity of 22 karat and above. Further, gold bars, bullion or gold coins above 50 gms are not accepted as collateral by banks and financial institutions.

What is gold loan renewal?

In an extension, you approach the lender to increase the gold loan repayment time on your existing loan. For instance, if you have taken a gold loan for 12 months but are unable to repay the amount in full at the end of the term, your lender may allow you to extend the gold loan repayment period by a few more months.

How does the gold loan industry work?

For a Gold Loan, the bank takes your gold as collateral for the period of the loan. Banks charge an interest rate, and once you repay the entire loan, the bank returns your jewellery. Another essential thing you need to know about how Gold Loan works is the type of gold accepted. Most banks accept only gold jewellery.

What is the tenure of a goldgold loan?

Gold loan companies today offer very competitive schemes with a wide range of tenures, interest slabs and repayment options making it very attractive for the customer Loan tenure is shorter compared to other loans. It is usually for one year.

Why India’s Gold Loan Market is attracting large investors?

Traditionally known as a hyper local retail business, India’s gold loan market has started attracting large investors since the last decade. India has seen emergence of gold loan specialty players commanding high market valuation during this time.

Is there more scope for gold loans in India?

The untapped markets in West and North India (which together hold almost 45\% of gold in India, but have minimal credit penetration) reflects there is more scope for gold loans in the future. Growth drivers for gold loan

Is it time to dig for a solution to the gold crisis?

It’s time to dig for a solution to the gold mining reserve crisis. The gold industry today finds itself at an inflection point between the recent era of cost-out initiatives and balance sheet deleveraging, and an increasing need to focus on growth and the replenishment of depleting gold reserves.