Gold loans were looked down upon at the start because the notion of giving the gold to someone else was scary. However, times changed, and peoples’ thoughts progressed. They then realized that pledging gold against money is not that bad. On the contrary, banks also wished well for their customers. Both the parties began to trust each other and were at equilibriums of profits. Thus, gold loans soon began to gain pace and became efficient too.
In 1991, there was a policy of ‘Liberalisation, Privatization, and Globalization’ which changed the whole scenario of how loaning worked. That is how international markets came into India. Almost around the same time, the share market began to gain pace too, and gold prices began fluctuating. This isn’t just plain history, this is one of those few reasons that hike the demand for gold loans.
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Pandemic!
We have seen pandemics before, but COVID-19 is the stealthiest of all. Our generation does not like to be confined in boundaries, they want to be set free, and go uninhabited. However, the pandemic did the exact opposite of it. It confided people in their own homes and now some households barely have the money to survive. -
High Gold Prices
Since the pandemic, all the goods have seen a hike in their prices, including metals. Gold rates have touched the skies and people wouldn’t want to buy gold. However, they would want to take a gold loan because of the gold loan interest rates. The interest rates are quite low and affordable due to the prices of gold n the market. Thus raising the demand for gold loans. Axis Bank Gold Loan is suitable for such loans. -
Unemployment
Gold is not only an auspicious gift but it is also one of the most expensive metals. Thus, when someone has gold, they usually think of pledging it for some money when in need. The gold loan interest rates basically are really low. Thus, when you get to take a gold loan, you can at least start a business. With all the free time in one’s hands, it is one of the best opportunities to start a business that could be suitable for your talent.
These were a few reasons why the demand for gold loans has reached its peak, or maybe the peak is yet far away. The gold loan has always been an essential part of the finance and share market fields. That is why it continues to serve people, in fact, over the years, people have started trusting gold loans extremely and have begun to invest more in it. Other than that the gold market itself drops hints for a person who is thinking of getting a gold loan
