NBFC is not good for mortgage loan against gold borrowers in India. A formal public survey was held by a reputed online financial products information provider company. Earlier gold loan was the easiest option for availing instant cash against the gold ornament. Last year, when the market was stable and per gram gold rates were stable between Rs. 27 thousand to Rs. 30 thousand for 24 carat gold, NBFCs were funding Rs. 2500/- per gram for 22 carat gold. They provided loan for 12 months and some of NBFC loan scheme were funding up to 100 % loan to value of gold.
At that time most of customers were not able to repay the interest timely. NBFCs sent a formal notice to the customers and after that they decided to sell out the gold through auction. Somehow at the same time maximum customers paid the interest amount and saved their gold from auctioning. So when the rate per gram decreases the loan per gram rate must reduce as per the market. Now current time when RBI restricts unlimited funding against gold and set the maximum percentage up to 60% of the current market value of the gold carat rate.
Borrowers did not know about the RBI policy and at the time of pledge the gold ornament as mortgage NBFCs employees do not follow the RBI guidelines and neither they tell the customers about the auction process. Even NBFC do not call to the customer to participate their gold auction. When the customer know about the auction and they come to branch for asking about their gold and want to get their remaining amount of the gold value. Not a single customer got the refund amount of gold till now. We all know gold is the precious metal and feelings are involved in the same of whole family. Gold auction is the worst thing in loan against gold. How can a company reserve right to auction gold without presence of the customers and without their permission. That’s why NBFCs are not good for mortgage loan against gold . Customer should choose mortgage loan instead of availing a gold loan or personal loan is another good option as unsecured funding.
Customer should avoid loan against gold or should take the loan from any of public sector or any other reputed private sector banks like SBI Mortgage Loan, ICICI, or HDFC Bank. So NBFC is not good for Mortgage Loan Against Gold Loan borrowers. Need mortgage loan at zero processing fees? Apply Now.
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