Since the credit market has been regulated, many people and entities have started relying on financial organizations (banks and non-banking financial companies) for borrowing and keeping their funds safe with them. The demand has increased substantially. Both banks and non-banking financial companies provide several options for the borrowing individual or entity. The financial organizations are under the radar of our nation's central bank, i.e., the Reserve Bank of India. As specified by the central bank, the rules and regulations have to be followed by the banks and non-banking financial companies. These regulations are the operations standards and how the banks and non-banking financial companies can conduct transactions as a lender. The central bank looks after every action taken by the financial organizations to safeguard the interest of the lender and the borrowing individual or entity. These rules are the laws that govern the functioning of the financial organization irrespective of whether the organization is public or private.
The borrowers also must be aware of these rules and regulations for a better and well-balanced decision. while applying for a credit facility such as a gold loan policy, it is on the borrowing individual or entity to decide. Whether they want to apply for the policy with a bank or non-banking financial company, it must be based on their requirements. The borrower's requirements will be based on the factors like what will be the gold loan per gram, interest charge, loan-to-value ratio, repayment schedule, and the tenure? There are various other terms and conditions to be taken into account. A gold loan is a secured form of credit facility and hence, the low gold loan interest rate charge. The repayment schedule provided is flexible and can be modified per the demand of the borrower.
All of the financial institutions (bank or non-banking financial companies) provide this with the highest comfort and convenience to the borrowing individual or entity. The borrowing individual or entity's collateral will be kept safe with the lending organizations, and they will be an agent who will take care of the asset until the borrower settles the entire amount. It is granted instantly to help the borrowing individual or entity with their critical financial needs.
These facilities are now available online as the lenders have introduced their facilities through the web and mobile applications.
The lenders have made progress by enhancing the characteristics of the facilities they provide and making it even more straightforward for the borrowers. Whether it is a bank or a non-banking financial company, the loan facility against gold or any other service will be provided with the same basis by both the lenders with slight changes in certain aspects. The lenders do have a decorum maintained, but the terms and conditions can be distinguished.
Comments