Gold Loans are the ultimate pillars of organizational success strengthening the core investment analysis in the economy and bringing about improvement in the financial operation of a country by providing adequate funds to leverage and regulate the already existing market structures. Thus gold loans play a crucial role in regulating credit value in economic regard.
It is important to understand the functioning propensity of the gold loan before we dive into the details concerned with the operating mechanism and parameters which these forms of loans command in the market environment. Gold Loans can be defined as those loans where the monetary amount can be obtained by the borrower upon submission of the requisite application form to the banking authorities where the personal and the professional details of the borrower would be entered and upon the successful acceptance of the application form, the borrower would be provided with the opportunity to lend from the banking institution which is being spoken about in this regard.
On the other hand, after the application for the loan has been submitted and accepted by the private commercial banking authorities to whom the loan was applied from the borrowers would be able to lend a significant portion of money in cash which can be utilized by the borrower for expenses like building a factory, constructing a land which can further be used for residential purpose and finally the borrower can also use the money to construct an organized workspace. Whatever functions are performed by the gold loan are aimed towards economic betterment and bring about improvement in the position of equilibrium between the borrower and the lending authority. There are gold loan rationing institutions in the country that help in providing finance opportunities for gold loans.
Following are some of the primary lending institutions that provide credit opportunities in the country-
Muthoot Finance- Whenever it comes to talking about the gold loan facilities provided by the banking institutions to the borrower, the first name that comes to mind while speaking about gold loans is Muthoot Finance Gold Loan facilities. Inspired by traditional banking tendencies, Muthoot Finance has been a reliable source of finance for borrowers all across the country. Muthoot Finance offers the option of lending at minimal interest rates and also encourages borrowers to take a small amount of the gold loan which can start from 1,500 and extend up to 20,00,000 depending upon the income capacity of the borrower.
Punjab National Bank Gold Loan- The second example of a banking institution provisioning gold loans is Punjab National Bank. PNB Gold Loan Interest Rate is significantly low compared to other financial institutions in place and they also offer the option of part payment. The option of part payment states that the borrower can pay a significant portion of the loan amount as down-payment. For the rest of the loan amount, the borrower can pay in equal monthly or yearly instalments and thereby can enjoy the facility of not having any financial burden on their shoulders. PNB Gold Loan facility is extremely popular in the economy as it helps in the determination of the income credited to the borrowers through the proper application of the gold loan facilities.
HDFC Bank Gold Loan- Another popular gold loan option that is prevalent in the economy is the option of having HDFC Bank Gold Loan which again is one of the most popular gold loan facilities in the country. In HDFC Bank Gold Loan the borrower enjoys the option of crediting requisite money to the bank account of the borrower which can be repaid through instalments or part payment facilities. The biggest advantage of HDFC bank is the quick redressal mechanism that it offers and the option of easy disbursal of loans making it a very popular loan option in the economy.
Conclusion: Thus the aforementioned examples of important gold loan facilities offered by various banks are important criteria that must be verified before approaching the gold loan market.
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