This COVID-19 lockdown has affected all of us in the worst way possible. A tiny virus has made the whole world come to a halt. No source of income is becoming a major problem in India, which has led to the death of many people due to depression about how are they going to run the households. It has made most of the population in India go unemployed because the maximum population consists of farmers, the three-wheeler drivers, businessmen, and the small traders.
To give them hope and make them understand that this is not the end, they were made more and more aware of the gold loan. This helped them make use of the idle kept gold at homes and indeed helped the government to continue the liquidity of cash for everyone.
Gold loan or also said loan against gold is the most convenient and hassle-free loan at present in India. The borrower just needs to get the gold ornaments and required documents (ID proof, address proof, and passport size photographs) to the lending institution from where he wants the loan. The gold ornaments are pledged with the lenders as collateral, valuated, and the borrower is offered the best loan amount possible. To ease the credit of money to borrowers the reserve bank of India announced that the loan-to-value ratio of the gold loan has been increased to 90% from 75%, i.e. borrowers will now be able to get 90% loan amount of the total gold pledged (till now it is valid up to March 31, 2021). This announcement was like an angel by the RBI for everyone expecting to get more funds to start their source of income again.
There are many Non-Banking Financial Companies (NBFCs) and banks providing the loan at home so that the borrowers do not need to come to the branch. Just apply for a loan and the respective staff member does all the necessary formalities at your home.
Gold loan availability in lockdown is a relief to many people. The low-interest rate on gold loan and high gold prices are good to people.
Conclusion:
The answer to the question - Yes, gold loan is available in lockdown also. The lending institutions have come one step forward to provide the loan and ease your difficulties in the pandemic situation.
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