The COVID has devastated the lives of millions of people by impacting the health as well as the economy. The governments of many countries declared a health emergency and imposed a prolonged lockdown to minimise the adverse consequences due to COVID. In India, a country where there is a substantial population of people having low income and where millions of people are dependent on the unorganized sector for their livelihood the situation is grim. A record decrease in the economy has hit the country brutally and everyone is facing a way to cope with this financial crisis.
5-month inactive businesses have forced many of us to use our savings for our survival and according to a statement made by EPFO ( employees Provident Fund office ), there has been a huge surge in the withdrawal of PF. All these stories reflect a very complex situation and a need for financial help to move ahead in life. But low income, Salary cut, none payment of salary, layoffs might not support us to avail a personal loan so what options we can go with to manage our budget to complete so many pending works? Of course, at this juncture, Gold Loan Can play a very important role in making our lives financially stable. Availing a gold loan can be an apt decision because in this situation we don't have to sell our gold reserves rather we need to provide it as collateral for getting a loan amount which will fulfil our requirements.
A gold loan will work as a Secured debt as we are already keeping our Gold with the lender for the security of the loan amount in case of non-payment of our debt. The gold loans are available at an affordable interest rate like 7% and this will hardly need a stronger credit history and a good income certificate. By putting our gold items we satisfy the lender about how to make repayments and a lender will not have any issue to pay an amount as large as 75-80 per cent value of the gold item. A financial institution generally provides 75-80% of the value of gold items to maintain the safety of their investment. Suppose the value of your gold item is Rs 1 lakh then you can easily avail a loan amount up to Rs 80,000 and Rs, 20000 will be your surplus amount with the bank which may be adjusted against non-payment of interest incurred on the principal amount.
Gold loans are easily available and many banks as well as NBFCs (Non-banking financial corporations ) provide loans against your gold items. In other words, we can say: A gold loan is a form of availing a loan from our own wealth, getting cash for our properties where our property helps us create wealth without being devalued and sold.The gold in your home can be used to get a good investment to start a new venture which will help you open new opportunities for income and once you sail through the hard times you have all the authorities to get your gold items back to you without any tedious process.
Here we have brought some features bad details of Canara bank gold loan which will help you in this tough economic condition :
- Gold Loan Rate of Interest: 7.0% per annum
- Gold Loan Per Gram Rs. 5,340
- Age of Borrower: 18 – 75 years
- Maximum Loan Amount: Up to 1 crore (with Income Proof)
- Maximum Loan to Gold Value Ratio: Up to 75%
- The purity of Eligible gold:18 carat to 22-carat gold
- Maximum Loan Tenure: Up to 12months
- Gold required: Minimum 10 gm