Have your parents ever bragged about the time before East India Company thought of ruling us? Have you heard the stories of how rich India was? I’ve heard them too. These stories always put me in a different thought frame. Earlier, we had a mountain named Meru which was flooded with gold. The gold was supposed to be the purest and the heaviest. Now, let’s fly back to the 21st century. We import gold in large quantities. India is supposed to be the best market for gold and it is. Gold loans in India became famous from the 2000s’ earlier people were scared to give their gold up to the bank. They were skeptical of the security. Also, the gold ornaments were passed down onto generations, and hence they weren’t considered an investment at all.
They were more like a memory of the ascendants and were cherished in the similar way. It was not until few years ago, when people grew more practical and began looking at it from a financial angle. Yet, the gold ornaments like mangalsutra (mandatory neckless for wives), bangles and earrings were the least of all the gold ornaments that were to be given up. People preferred to give their waistbands, rings, gold chains, and pendants. The newly wedded wives wear four bangles, usually, the family would pledge two out of the four.
We Indians, have festivals lined up according to the Hindu calendar. According to the calendar, there are special days where it is mandatory to buy gold, even if it is in little quantities. Hence, every household earned its share of gold by the end of the year. This gold was then used for gold loans and the money that came from gold loans was invested in business or to buy some other commodity. If put in business, it would expand the business and hence gave room for more income.
The gold that was pledged would slowly be released and then more gold ornaments were bought. This is how gold loans in India gained magnitude. Women were more open to gold loans than men because they knew which ornaments they used and when. So, they encouraged the pledging of the unused gold loans. Women in India save money without heir husband’s knowledge. This might sound like a scene from a Bollywood movie, but it is true.
They keep notes of 50s and 100s in the different the container of grains. This money is then used to pay off an installment when they are under a financial crunch. Gold loans in India, have a huge demand. That’s how Mannapuram gold loan schemes came into existence and are gaining so much of trust Gold loans are one reason for a smooth cash-flow in every household and economy. We hope that you liked this blog and found it interesting enough! Stay tuned for more such blogs!
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