- Relieving Aspects
- Income
- Purity
- Collateral security In all the other types of loans, there is a requirement of collateral security can say a pledge which can be kept to ensure safety if there is no happening of any uncertain things like that of the non-repayment of the loan amount or surrendering of the loan amount from the side of the loan borrower.. this is the reason that which is much more concerned by the banks and NBFC that if for any chance if it is non-repayment occurs then how it will be covered up. So the gold which is pledged against in the Bank is now day treated as an asset which due to any difficulty of paying a decision of payment from the side of the customer the Bank will use it as collateral even if while availing the loaned gold is not treated as collateral security then also on selling, or option in whatever the amount will be collected will be e treated as the loan amount. If any amount is left after that, it will be handed over to the customer, who is the owner of the gold.
There is some good news from the government's side, and the responsible authority has also introduced some of the reforms and policies mentoring stability to the economy. This is why the moratorium period of four years has been extended to that of five years for those who are finding it too difficult to pay the loan amount of their respective availed loans availed during the time of the pandemic or before that year. This will make the people's lives a little bit stable without stopping the repayment structure in the economy as a source of injection or the inflow in the economy circulating the financial requirement.
Income plays a very important role in maintaining the financial stability e of self-life and for the life of others. Wife going for d personal loan there will always be a requirement of knowing the amount of income a person events at the end of every month because income will be the only source of the way of repayment of the loan installment at the end of the month due to which the banks are the financial institutions are very much concerned about the income in case of an unsecured loan as per gold loan interest rate which includes no collateral security but only income as the primary source of repayment of the loan amount. On the other hand, there is some substantial part of income which is having a little bit of influence but not to that extent because gold itself acts as an asset which the Bank can use to resell and collect the loan value while any uncertainty arises.
The purity of gold means the concentration of the value of gold which will be applicable by the world market to claim its original actual value. In other words, it can be explained that purity is that condition in which a bar of gold will give the value of a range between 18 to 24 carat as applicable with the gold rate per gram as per the gold standard of the world market. For example, if the jewelry is mixed upon with that of the stones and jewels, it is also not considered to be pure gold because it is already included. For example, the Bank of India gold loan offers good facilities for the customers. In the same way for the same purpose, it will be excluded from the surrounding area. If the purity of the gold does not match with that of the qualification, then the person will not be able to avail the win the approval gold loan.
Also read this: Legends that are in the market about Gold Credit