Gold ornaments and articles have deep-rooted social and cultural importance in our country. It has religious significance in our country. People consider it as a vital part of every auspicious occasion. Gold is considered a crucial part of Hindu mythology. It has always been sacred to people, and it is a symbol of purity.
Apart from being an emblem of pureness, it is a symbol of status as well for some people. This yellow metal has been a center of attraction ever since it was found. People love buying this yellow metal. During festivals and the wedding season, the demand for this metal is exorbitantly high irrespective of the soaring prices in the market. Such is the extent of attachment people have with this metal. Whether it is an Indian household or economy, gold has a significant position in all aspects.
For many, it is not just metal; it is a valuable asset that they want to feel secure and stable. Indians invest a lot in gold, some invest in a teeny-tiny amount, and the rest invest in a higher amount of gold, but investing in gold is essential for Indians. This highly valuable and precious asset is an integral part of Indian households.
The price of gold takes a leap every once in a while, and this is why people buy it and keep it for a period and then sell it when needed. A lot of people hesitate while selling it, and they keep it rather than use it when in need.
All assets (whether tangible or intangible) have something to give in return. The increased prices of this yellow metal do provide an increase in capital. What is the worth if it cannot serve the purpose of supporting us financially when necessitated?
Gold ornaments can be put to use, and funds can be acquired to tide over the crunches faced by the individuals and entities at any point in time. An Agricultural gold loan or a loan against gold is provided against yellow metal provided as collateral to the lending institution (banks and non-banking financial companies). This is known as the secured form of loan, which means that you have to pledge something in the form of security to avail of the loan.
The collateral to be pledged by the borrowing individual or entity has to be as per the norms and regulations of the lending organization. The articles kept idle at home can be utilized to unlock the benefits that a borrowing individual or entity can avail of by getting funds from a gold loan.
The process of a gold loan is straightforward and easy to follow. The borrowing individual or entity should get through some of the terms beforehand. The information can be easily accessed online, such as for information related to the BOB Gold loan policy; a borrower does not have to visit the lender as it is readily available online. The borrowing individual or entity has to check the interest charges, gold loan per gram rate, the tenure of the credit facility and other term ad conditions before applying for a particular facility.
Then the borrowing individual or entity can fill in the application form, attach KYC documents, and submit them. The amount of the credit depends on the quality (purity) and quantity of the collateral presented by the borrower. There is a maximum limit of credit amount that every lender has, but this upper limit can vary. The financial organization (banks and non-banking financial companies) have a fixed loan-to-value ratio that is usually 70% to 80%. Recently, the government and the central bank have decided to push the limit for this ratio up to 90%. The borrowers have to look for a policy with a higher ratio and provide the security of a larger quantity.
The jewelry kept in a locker can be diverted or used towards getting funds without any troublesome process or sky-high costs of attainment.
