Gold is considered one of the most useful and auspicious reserves in Indian households. As per the World Gold Council report, gold worth Rs 1.5 trillion is kept in the form of jewelry by people.
Gold is one of the major assets in Indian culture. It is considered a status of wealth and used as a resource to meet immediate financial requirements at times of crisis. Significantly after COVID-19, there has been a surge in gold loan demand. During the pandemic, facing financial crises, many people found that gold was a better credit instrument than savings.
Getting financial assistance against gold is comparatively easier and faster than any other credit option. The best part about gold loans is same-day approval that too at the best interest rate.
Financial institutions, including banks and NBFCs, have realized that after COVID-19, the gold demand surge is exponential. Many NBFCs like Shriram Union City Finance Ltd have come up with excellent schemes on gold loans for the convenience of customers. They have also given the option of a gold loan calculator on their platform to help a customer choose the best gold loan offer. NBFCs, with their best lending strategy, have changed the gold loan market scenario forever. Now, sitting from the comfort of the home, one can get a gold loan at the best interest rate in a day only. The gold pledged by NBFCs is valued as per the current gold price on the same day you have filed a gold loan application.
NBFCs are non-banking financial institutions that offer bank-like financial services to their customers. Offering loans is one of the most popular financial services of NBFCs nowadays.
India Quarterly Gold Demand Trend (World Gold Council)
In 2020, many people lost jobs, and chunks of business turnover slowed down. At that time, the only and safest option left with them was applying for a gold loan. It is the only secured loan financing option whose processing time is less, and interest is low. Speedy documentation, less paperwork, and quick disbursals are the main USPs.Rise of gold prices
2020 is the only year to witness a surge in demand for gold. Most people prefer to pledge gold with NBFCs or banks to fulfill their immediate financial requirements. The rise in gold loans automatically increases the price of gold. A September 2021 report shows that demand for gold rose to 47 percent in 2020.Investment opportunities
Gold loan has opened doors for all those who are looking forward to starting their online business. Using their gold, they can arrange the finances on their own. Gold loan is the biggest financial support for all those projects that have been on hold for many years.Easy access to capital
Quick access to funds is the main reason why people apply for a gold loan. Just with a click of a mouse, you can get financial assistance at a low-interest rate by pledging gold as a collateral. It reduces the risk associated with the loan. Online gold loans offer comparison in terms of processing fee, interest rate, and gold loan amount.
NBFCs like Shriram City Union Finance Limited are trying their best to help customers get the best loan offers.
A loan against gold is the safest financing option to meet all the personal and business requirements like medical emergencies, weddings, business expansion or any other similar financial needs. With quick disbursal and minimal documentation, getting a loan against jewelry is a go-to option. One can get a loan up to 75% of the gold value. It is known as the loan to value ratio.
Apply for a gold loan with Shriram City Union Finance Limited; we offer a gold jewelry loan at simple interest without levying any additional charge. We have two gold loan schemes; EMI and non-EMI schemes. The Shriram City gold loan interest rates start from 11.5%. It makes Shriram City Gold Loan a compelling option to meet your financial needs.