New Delhi: The second wave of Covid-19 is proving to be way more drastic than the first one, with many struggling to find proper healthcare facilities. Many across the country are struggling financially, and are in need of money.
You can easily get money at lower interest by pledging your gold as collateral from banks or non-banking financial companies (NBFCs). According to data compiled by Bankbazaar, banks are offering gold loans with interest rates starting as low as 7%. In comparison, personal loans are offered at around at least 10%.
At present, there are many banks and NBFCs that are offering gold loans, but it is quite confusing to select the right option. If you are looking to take a gold loan and confused about which bank or NBFC you want to lend, then let us tell you that the Bank of India and Punjab and Sind Bank are offering the lowest interest rates.
At present, Punjab and Sind Bank is offering the lowest interest rate among other banks at 7%. Meanwhile, the Bank of India is providing gold loans at a 7.35% interest rate. It is important to note that these rates are for a 5-lakh loan with a three-year tenure.
Currently, gold prices have remained weak. At present, it is selling at Rs 9000 lower than its all-time high achieved last year. However, financial pundits are expecting gold prices to recover in the coming weeks as the second wave of Covid-19 sends bearish signals to the stock market.