Gold has become one of those things that can be utilised for a variety of purposes, ranging from adornment to investment asset. People acquire gold to demonstrate their wealth and as a high-value commodity which could be used instead of money. Anyone can use gold to exchange money as per the gold loan interest rate at NBFCs or banks. Above all, there is an evident emotional affinity to gold in Indian households.

Gold and its potential of fetching money from different lenders incorporated can’t be overlooked by anyone. Gold is useful in many emergency situations, including personal and business-related ones. A gold loan agreement allows the borrower to repay the original amount as well as the interest of gold loan scheme they choose over a certain period of time.

Knowing the various gold loan interest rates offered by different money lenders is the best approach to finding the finest arrangement for you to obtain the most value for your gold. Manappuram Finance is known for its lowest rates of interest of gold loans and high value for the gold at all times.

There have been several developments in the gold loan industry recently. Here is a look at a few of them that you might have missed.

The evolution of the gold loan industry

The gold loan business used to be dominated by local money lenders and brokers. It functioned, but it was untrustworthy owing to the lack of reliable paperwork and impracticable in some financing situations. The situation has transformed substantially as a result of loan packages offered by NBFCs and banks at low gold loan interest rates.

Increase in the gold loan value after COVID-19

After the COVID pandemic in 2019, gold's worth skyrocketed just like other commodities. Due to a lack of working capital, business owners were pressed to close their doors. People's personal lives were also severely impacted. During this time, gold became an excellent solution for all of these people to stabilise their financial flow by obtaining loans from lenders and agreeing to return them together with the gold loan interest rate.

Individuals began receiving the greatest deals on the interest of gold loans. Besides, the prerequisites got loosened up by the lenders. A gold loan's simplicity, as well as the fact that the borrower will never be responsible for maintaining a credit limit, made it a feasible option.

Gold price fluctuations

A loan against gold and the interest of gold loan completely depends upon the market value that gold has at the moment an individual applies for it. During the first quarter of 2021, there were huge gold market rate fluctuations and the value of gold as well as gold loan interest rate went down fast. This change affected the loan value alongside the gold loan interest rates.

Banks and non-banking financial firms were pressured to extend outstanding loans while waiting for the gold market value to recover.

The popularity of gold loans among people

In the recent past, lending money for the lowest interest of gold loans has become a popular way for people to obtain money for their needs. The increased value of gold makes it more accessible to everybody, and the market for gold loans is expected to grow through the end of 2022.

Since the beginning of 2019, gold lending companies that offer the lowest gold loan interest rate, including banks and non-bank financial companies (NBFCs), have been aggressively expanding into new markets. The emergence of online platforms and digital paradigms has opened up various otherwise undiscovered streams in this sector with and without interest of gold loans.

The increase of NBFCs

There has been a surge in the number of non-banking financial firms where you may get attractive deals on gold. NBFCs like Manappuram Finance are now popular due to their contribution to the financial sector with low interest rate of gold loans.

These firms had weathered some of the biggest losses in the past due to the volatility of gold's market value. They overcame the disasters, however, by implementing effective risk management strategies and timely collection of the interest of gold loans as well as gold auctions.

Auctions happen when the borrower fails to repay the money along with the gold loan interest rate. Banks and NBFCs store the gold in its original condition until the borrower takes it back, or they auction it to recover the amount they paid for it.

Because of the simple acquisition and repayment methods for loans and gold loan interest rates these lenders provide, they will continue to grow in the coming days.

Get the best value for your gold from Manappuram

Manappuram Finance offers the lowest gold loan interest rates for you along with the best value for the gold. The interest rate on the gold loan plan you select will be determined by the gold's current market value. All our gold loan procedures are fast and effortless without any kind of hassles in the documentation.

Our instant gold loan service assures the money to be credited into your bank account within 48 hours. You can select from a variety of options depending on your ability to repay the interest of gold loan.

Doorstep gold loan service

Free of cost, you can get a loan against your gold at your doorstep from Manappuram. We offer free insurance coverage and instant money transfer through our service executives. All your financial anxieties can be alleviated by contacting our experts.

Moreover, you can exchange your gold with money for vehicle loans, business needs, home and residential needs, healthcare and more. All the gold assets you provide will be kept safe until you take it back after repaying the actual amount along with the interest.