The disbursal of loans against gold in the first seven months of the financial year has grown by an astounding 50%. Many analysts see this as a sign of deepening financial distress of the households.
However, there are also other factors as well driving the growth in this segment. The regulatory pushback against unsecured personal loans being one of the primary factors. Every other segment of personal loans grew in mid-single digit during this period at a low 3.3%.
Ease of getting a loan against gold jewellery, the price of which had sniffed at ₹8,000/gram late October is another factor driving this segment. Also, being a fully secured loan product, unlike unsecured personal loans, banks charge only under-10% interest, while gold loan NBFCs charge much higher, 1.2% a month for three months. If not unpledged in the third month, the interest rate spikes to 2%. In the former scenario, a borrower pays 1.4% on an annualised basis and 24% in the case of the second event.
Denne historien er fra December 02, 2024-utgaven av The New Indian Express.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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Denne historien er fra December 02, 2024-utgaven av The New Indian Express.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
What Makes Loans Against Gold Jewellery Hit Among Borrowers
A slew of factors led by the increasing financial distress of households, regulatory curbs on personal loans & rising prices of the yellow metal are driving the mkt
Retirement Planning & Portfolio Construction
know two people who are more than 70 years old. How much of their money should be in equities? "Sir, 100 years minus their age - so they should have about 30% of their portfolio in equities".
GET Massive fire in UP hospital, 10 newborns dead
TEN newborn babies died of burn injuries and suffocation after a massive fire broke out at the neo-natal intensive care unit (NICU) of Rani Laxmi Bai Medical College in Jhansi, Uttar Pradesh late on Friday night.
**Massive fire in UP hospital, 10 newborns dead
TEN newborn babies died of burn injuries and suffocation after a massive fire broke out at the neo-natal intensive care unit (NICU) of Rani Laxmi Bai Medical College in Jhansi, Uttar Pradesh late on Friday night.
Massive fire in UP hospital, 10 newborns dead
TEN newborn babies died of burn injuries and suffocation after a massive fire broke out at the neo-natal intensive care unit (NICU) of Rani Laxmi Bai Medical College in Jhansi, Uttar Pradesh late on Friday night.
Massive fire in UP hospital, 10 newborns dead
TEN newborn babies died of burn injuries and suffocation after a massive fire broke out at the neo-natal intensive care unit (NICU) of Rani Laxmi Bai Medical College in Jhansi, Uttar Pradesh late on Friday night.
A Siva temple associated with a game of chess
Karpagavalli, Rajarajeshwari (consort of Pushpavaneshwarar) and Chamundeshwari. Rajarajeshwari is the Pandya princess who married Chaturanga Vallabanathar who came as a sanyasi and won the chess competition. Goddess Chamundeshwari is said to be the companion of Rajarajeshwari.
Xavier Samuel, Sonal Sehgal join hands for The Great Departure
CTORS Xavier Samuel and Sonal Sehgal are all set to headline The Great Departure, a film from director Pierre Filmon, a Camera d'Or nominee.
Vemal's next titled Paramasivan Fathima
AFTER his last appearance in director Bose Venkat's SIR, Vemal recently announced his 35th project, titled Belladona. On Saturday, the actor announced another film. Titled Paramasivan Fathima, the upcoming film was announced by actor Vijay Sethupathi.
'I LEARNT NOT TO CELEBRATE MY SUCCESSES'
...says Krishna, who speaks about juggling the roles of an actor and producer in the recently released web series Parachute, while Kani Thiru discusses the complexity of playing a mother
