Why Gold Loans from Banks are better choice?
Why Gold Loans from Banks are better choice? With gold prices at an all-time high, gold loans have become a sort of lifeline for small businesses, traders, and salaried and self-employed individuals who are looking for a respite from pandemic-induced financial woes. One of the first decisions to make when looking for a financial institution that offers gold loans is choosing between a bank and a Non-Banking Financial Company (NBFC). Now, several factors determine which is a better option, from interest rates to the safety of the gold you have pledged and several other things. With banks and NBFCs offering almost similar deals, how do you make the right choice? Read on to find out how gold loans offered by banks and NBFCs stack up against each other: 1. Interest rate The cost of borrowing, quite understandably, comes first on the checklists of most people. Interest rates are determined by how much it costs lenders to arrange for funds. Since NBFCs do not have access to large dep...