In India, gold has always been a friend in distress. The yellow metal as well as gold loans come in handy during cash crunch or financial stress situations.
When an individual applies for a gold loan, banks keep gold jewellery or other gold items as collateral. Gold loans allow individuals to access funds without having to sell their gold. Most banks notify borrowers in case of repeated non-payment of EMIs and eventually, the gold is auctioned off if the borrower defaults.
Here are the banks/NBFCs that are offering the best gold loan rates.
1. Bank of Mahararashtra
2. State Bank of India (SBI)
3. Canara Bank
4. Punjab & Sind Bank
5. Indian Bank