Blog #Gold Rate Today

In Indian culture, gold is more than just an investment; it is a culturally important metal that has found a place in both Indian hearts and homes. While the vast majority of the Indian population lives on meagre resources, they find ways to buy gold and make it an integral part of their lives, regardless of gold prices in their city/town. Gold is in high demand across the country, from Delhi to Chennai and from Ahmedabad to Kolkata.

There are a few factors that have driven gold to a pedestal in India, where it is expected to remain for a long time:

• In India, gold is an important part of religious ceremonies. Gold is a valuable commodity in all major religions in India, including Hinduism, Sikhism, Jainism, and Christianity.
  
  
• Gold is found in every Indian household and is regarded as a family heirloom by the majority of Indians. Gold jewellery and ornaments are passed down from generation to generation in order to preserve the family heritage. In most families, jewellery is passed down from a mother to a bride at weddings.
  
  
• Giving gold is considered auspicious, with gold gifts being an integral part of all ceremonies. Gifting gold allows recipients to put it to good use since it is not only a valuable source of money but is often considered lucky. It is customary to give gold as a wedding present. In fact, the gold rate in Delhi was one of the most searched things in the wedding season.
  
  
• In India, there is no greater status symbol than gold, and Indians are not afraid to flaunt it. Gold is one thing that can make people stand out, literally shine in a crowd, in a social environment of billions of people.
  
  
• Gold has often been regarded as the best investment, according to a perspective shared by Indians. This property of gold as a protector against hard times has prompted Indians to purchase it as an investment.

India is the world's largest gold producer, accounting for nearly a quarter of global demand. It has held this status for a long time, and unlike countries such as China, India mainly uses gold for jewellery and investments. It is regarded as a reliable investment option, and even commodity traders invest in physical gold. These investments are generally determined by the gold prices that exist in the economy at the moment.Also, gold is perceived as a safe asset in which people can invest even though investing in a country's economy is not a good idea.

Current gold rate fluctuates regularly, with various factors influencing its price in a specific location on a given day. Demand and supply, global market conditions, and currency fluctuations are some of the essential factors in deciding a country's gold rate, with prices changing daily. The rate of 1 gram 24K gold in India for the past five days (from 20 May 2021 to 16 May 2021) has been Rs 5072, Rs 5072, Rs 5071, Rs 5022 and Rs 5021, respectively.

The trend of gold rates in the first week of May have been as follows:

• On 1 May, the gold price in India opened the month at Rs.4,956 per gm and increased during the week. On 2 May, the price of yellow metal increased marginally to Rs.4,957 per gm, then to Rs.4,977 per gm on 3 May.
  
  
• Due to a weak dollar, the price of the metal in the country increased to close the Rs.5,000 per gm mark at Rs.4,998 per gm on 4 May and increased by Re.1 to reach its weekly peak at Rs.4,999 per gm.
  
  
• At the end of the week, gold prices fell to Rs.4,974 per gm on 6 May before rising marginally to Rs.4,975 per gm on 7 May.

Conclusion: Gold is regarded as a super-metal by Indians, a super-metal capable of solving a variety of problems. While not all that glitters is gold, for Indians, gold is their knight in shining armour. Hence, the gold rate in the country will always be one of the hottest topics of discussion.

Read More:- Key Points Regarding The Gold Loan Future 

The most significant drivers that upheld gold as the world resumed incorporate sovereign and private area obligations, deficiencies, and super-free financial strategies. Governments throughout the planet battled to switch the monetary approaches acquainted as a reaction with the pandemic referring to dreary economic development in coming years. An ongoing surge in gold costs prompted more appeal for gold advances in the period of the pandemic and expanded the resource under the administration of significant gold advance NBFCs, as indicated by a report by World Gold Council (WGC).

The report said that the extraordinary coordinated gold credit is required to develop to Rs 4,051 billion ($55.2 billion) in FY 2021 from Rs 3,448 billion ($47 billion) in FY 2020. The 28.8 percent rally in homegrown gold cost for this current year has prompted expanded interest for gold advances. Borrowers have profited by higher credit as an incentive for similar insurance, while moneylenders have profited by lower advance-to-esteem (LTV) proportions on their current advances and more popularity.

With a higher gold cost and more prominent liquidity needs emerging with the beginning of COVID-19, it was accepted that COVID-19 would actuate higher gold reusing from purchasers. Nonetheless, buyers utilized their gold property as a guarantee to get their financing needs as opposed to altogether selling. Additionally, the agrarian economy has performed firmly this year, decreasing the requirement for trouble selling.

Request during the pandemic has pushed gold advance AUM higher for India's driving gold advance NBFCs - the AUM of Muthoot Finance and Manappuram Finance expanded by 15% and 33.4 percent y-o-y individually in Q2 2020.

Kerala-based Federal bank detailed a day and a half penny expansion in gold credit AUM year over year in Q2 2020. Indian Bank has seen a 10% expansion in the average ticket size of gold credits to Rs 88,000. Late industry connection and media articles have likewise referenced more appeal for gold credits. Bajaj Finance Gold Loan has seen a sharp rise in the number of people opting for it.

Banks have forcefully advanced and dispatched gold credit plans since the episode to exploit these worthwhile plans, according to the report. The gold credit industry has generally been a mainstay of help for private companies and families needing crisis momentary help. Notwithstanding chaotic loaning that typically coincides with any robust gold market, the directed Institutional structure of gold credits in India has made it pervasive over the previous decade, which is, in reality, an aid.

It is noticed that the Covid-19 pandemic has helped interest on Gold Rate Today through banks and non-banking monetary organizations. Gold advances are profiting from the exciting side as well as are providing side elements, too as numerous banks and non-banking establishments are focusing on this item fragment because of its worthy danger profile. The utilization of gold as a portfolio diversifier is relied upon to develop this year, which should help the costs move higher.

Conclusion: Gold Loan advantage the interesting side as well as the stockpile side elements, as numerous banks and NBFCs focus on this item portion by virtue of its good danger profile. It is accounted for that the gold loan industry comprises a significant column in supporting the financing needs of people and private ventures in the country. Gold is a favoured reserve fund for Indian families as it gives capital conservation, liquidity, and wellspring of financing during terrible monetary occasions, supporting the importance of gold as an essential resource in India. With the development of the pandemic, there has been a good pattern in expansion in gold loan interest from people and organizations. Interest for gold loans, both through banks and NBFC, has filled because of the economic effect of the pandemic.

Must Read- Some categories of Gold Loan 

So let's start by understanding what gold loans and personal loans are. 

Gold loan is a secured loan that the borrower takes from the lender by taking money against gold. It is the best option to go for if you have a short-term money requirement. The demand for gold loans has increased a lot because the gold rate is increasing a lot, the Gold Rate Today is INR 49,700 which is high compared to the past.

The features of the gold loan are :- 

1: Fast processing :- The application process is comparatively fast. You don't have to wait for days or months to get your gold loan approved. Most of the banks and NBFCs give cash instantly once the documents are approved and the gold is verified. For example- the Gold Loan at Manappuram.

2: Rate of interest :- The interest usually depends on the lender to the lender. Some may charge 7.50% whereas some can charge 13%. It depends on the bank. But the rate of interest of gold loans is usually low when compared to other loans. And if you want to lower your rate of interest even more there is an option where you add any other asset as collateral.

3: Paperwork :- There are not many requirements for paperwork. You only have to give copies of basic documents like:-

• Aadhar Card
  
  
• Pan Card
  
  
• Voter ID Card
  
  
• Passport
  
  
• Rent Agreement
  
  
• Utility Bills, Telephone Bills, Electricity Bill
  
  
• Driving License
  
  

Banks usually don't ask for income proof when one is applying for a gold loan. Banks give individuals the flexibility to do whatever they want with that money, you are not reasonable to anyone. 

• Credit Score :- Unlike other loans you don't have to maintain your credit score to get a gold loan. The thing that matters the most is whether or not you'll be able to repay the amount with interest.
  
  
• Flexible repayment :- Banks offer you several options for repayment, you can pay however you want, for example:-
  
  

• If you want to pay the whole amount at the end of the tenure you can do that.
  
  
• If you want to pay the half amount at the initial stage and the rest at the end you can do that.
  
  
• And if you want to pay the whole amount every month in small fractions then you can go for an EMI option. 

Personal loan :- It is an unsecured loan, made to meet your current financial needs. You don't have to keep anything as collateral or security to avail this loan.
 

Features of personal loan are :- 

• No collateral :- For a personal loan, you don't have to give anything as collateral or security. This is one of the most advantageous things about a personal loan. But it is completely optional, if you don't have any assets and you want a loan immediately then you can go for this option. But if you have an asset then you can go for a gold loan or any other loan.
  
  
• Complete flexibility :- You are completely flexible to use the money you get from this loan however you want. But you can't use it for illegal activities.
  
  
• Paperwork :- You'll have to complete your KYC to get approved for this loan.
  
  
• Credit score :- You'll have to maintain a decent credit score to get a personal loan.
  
  
• High-interest rate :- As a personal loan is an unsecured loan, the interest rate is usually high for unsecured loans. 

Conclusion :- Both the loans have their own unique properties. Both have reasonable features and are suitable for different situations. To compare all the choices you have in your hand and then go for the best one.

Read More:- Ten Steps That You Need To Follow While Applying For A Personal Loan 

A gold loan for an unemployed person is a piece of cake these days. India and Finance have progressed so much that even an unemployed man can get a gold loan quickly. You may think that it’s a lot of paperwork, and you’ll have to make a lot of rounds to the bank, but those are just rumours. Getting a gold loan is so much easier and quicker than it was before. You’ll just have to take minimal required documents, get it confirmed by the bank, and voila! You’ll get your gold loan approved at an attractive interest rate just like that. 

There are even a lot of government schemes for the unemployed:-

Prime Minister Rozgar Yojana:- It provides self-employed opportunities to educated youth along with that it also allows you to get loans up to 10 lakhs. This scheme was launched in 1993 and is targeted at women and youth. 

Agriculture Loan:- This is a scheme targeted to unemployed youth engaged in agriculture. With the help of this scheme, you can get a loan of up to 1 lakh without any security. 

Loan subsidy scheme:- This scheme is not available across all states; still, the Tamil Nadu government under NEEDS (New Entrepreneur and Enterprise Development Scheme) provides a 25% subsidy for any loan taken by an unemployed person. 

Cash loans:- Under this state-funded initiative, an unemployed person can apply for a loan up to INR 50000. The age criteria for this scheme is the 18-45 age group. This scheme is similar to NEEDS, but this scheme is under the government of West Bengal. 

Getting a gold loan can also be an advantage for an unemployed person. Gold rate today is not that high as compared to the past offerings by lenders. Most gold loans don’t have any documentation process; you can just walk in your nearest branch and get your gold loan approved in a minute or two. Gold loans usually have lower interest rates compared to other credit loans, so it also helps in reducing your monthly outflow.  

Some banks give special offers to their existing customers; they provide offers like easy repayment options, attractive interest rates, and instant liquidity. For example:- IndusInd Bank gold loan gives an additional discount to women borrowers and agricultural professionals for a loan up to 10 lakhs. 

Interest rates:- Usually, the interest rate is higher than 8%, but you can get it for as low as 6%.

Things to keep in mind before going for a gold loan:-

1. The Lender:- Choose your Lender carefully, It is usually advisable to choose a public or a private bank, but you can even go for Non-Banking Financial Companies (NBFC) so that your gold remains safe with them. 

2. Rate of Interest (ROI):- There are a lot of banks and different banks that provide gold loans at different rates of interest. So it is always advisable to do your research and go for a bank with less rate of interest. So at the time of repayment, it won’t cause many difficulties. 

3. Loan Amount:- As there are plenty of banks/lenders in the sea, but no one gives you 100% of your gold value amount. So choose your Lender carefully and do your research before choosing the Lender. You can compare the prices and the rate of interest to choose your perfect Lender. 

4. Tenure:- The gold loan tenure is usually short; some provide it for 8-24 months and some for 12-48 months. So check if you are capable of repaying the amount with the rate of interest for the particular time you go for. 

5. Repayment method:- As earlier mentioned, some banks give offers like easy repayment options to their existing customers. Some let you pay the principal amount at the end of the tenure and allow you to pay the interest during the time. At the same time, some let you pay annually, quarterly and semi-yearly. 

Also Read:- Not Many Significant Variables That Influence Gold Costs 

Axis Bank is a well-known organization in the private banking industry. Axis Bank provides Gold Loans at a low cost. By pledging one's gold ornaments or gold coins as collateral, an Axis Bank gold loan may be obtained to fulfil an immediate cash requirement. Axis Bank provides one of the lowest gold loan rates, at 12.50 percent, to both current and new bank customers. The interest rate on an Axis Bank jewel loan varies depending on the amount borrowed, the purity of the gold, and the loan to value (LTV) ratio.  In line with the gold rate today , Axis Bank offers a Gold Loan per gram rate of Rs. 2,506 to Rs. 4,621. You would be able to get a gold loan from Axis Bank not only quickly, but also at a lower interest rate.

Features

• The interest rate on an Axis Bank gold loan ranges from 12.50 per cent to 17.50 per cent.
• Processing fees of 1% plus GST are charged by Axis Bank.
• The term of a Gold Loan will range from 6 to 24 months.
• Axis Bank offers the lowest EMI per lakh on an Axis Bank gold loan with the lowest gold loan interest rate of 12.50 per cent and the longest loan term of 24 months.
• Prepayment of jewel loans is free of charge at Axis Bank.

Fees

• A processing Fees of 1% plus applicable taxes is levied.
• A valuation Fees of Rs. 500 plus applicable taxes are charged.
• No prepayment charges are paid by the customer.
• A Penal Interest of 2% of the loan amount per month has to be paid on the overdue amount.
• Foreclosure Charges
  
  
  • If the gold loan is closed within 3 months of the sanction date, 2% of the approved loan sum plus related taxes will be charged.
  • If the gold loan is closed within 3 to 6 months of the sanction date, 1% of the approved loan sum plus related taxes will be charged.
  • If the gold loan is closed within 6 to 11 months of the sanction date, 0.50 per cent of the approved loan sum plus applicable taxes are payable.
  • If the gold loan is closed after 11 months from the date of sanction, there will be no foreclosure costs.

Interest Rates

Axis Bank offers the lowest gold loan interest rate of 12.50 percent. Axis Bank currently provides gold loans beginning at 12.50 per cent, which is 0.5 percent lower than the previous cost of 13.00 percent.

Eligibility

You can easily get a gold loan from Axis Bank if you are between the ages of 18 and 75 and have gold ornaments or jewellery or coins to put up as collateral. Additionally, the gold products you pledge must meet the bank's internal requirements.

Conclusion

Axis Bank Gold Loans are gold-backed loans with same-day disbursement. By visiting your nearest Axis Bank branch, you can request a Gold Loan and receive prompt approval. Axis Bank offers a gold loan of up to Rs. 20 lakh. The tenure period ranges from six to thirty-six months. Axis Bank provides a gold loan for agriculture at a cost that is percent to 2 per cent lower than gold loan rates. To meet your financial needs, you can apply for an Axis Bank Gold Loan. Axis Bank provides an online payment option for gold loans. When applying for a gold loan, you are not required to have a co-applicant. You can check the status of your Axis Bank Gold Loan online by going to the bank's website and logging in with your username and password.

Read More:- Gold Loan Meet The Needs Of People 

The two most prominent types of loans under secured loans are gold loan and home loan. At the same time, one of the most common examples of unsecured loans is personal loans.

What is the difference between these two types of loans anyway?

Gold loan: 

It is a form of secured loan wherein the individual pledges their gold ornaments, jeweller, gold bars or coins to get money for the value of the gold based on the gold rate today that is the rate of that amount of gold on the day you are applying for a gold loan. Availing of a gold loan is a simple process. It does not require you to have a credit score like the other type of loans expect you to have. All you need to have is a stable and steady job that gives you sufficient income to pay the interest amount in whole every month and manage other expenses.

It doesn’t matter what your profession is or what kind of job you do. You need to be in a position to pay the interest for the amount that you borrow. You can be any age, but you have to be above 18 years to avail yourself of a gold loan in your name. The documents required to avail of this loan are the same as any other kind of loan. Gold loans also offer you loans for lower tenures, making it easier for you to get the amount and finish paying off the credit as soon as possible. One such bank that offers excellent gold loan services is the Muthoot finance gold loan.

Personal loan: 

It is an unsecured form of loan. The individual would only have to pay the processing fee for the application, have a decent credit score, and be eligible to avail the amount they wanted. A personal loan has various advantages. The amount borrowed from a personal loan can be put to various uses and its long loan tenure helps you take less tension and plan your expenses for the next few years accordingly. Having a personal loan would also instil financial seriousness in you. 

That means you would be very careful as to where, when and how you spend your money, and you would be careful not to overspend. Because you would need to have money to pay the interest amount the next month without fail. Failing to repay the monthly instalments would have a negative impact on your credit score or CIBIL score. However, unlike a gold loan or any other type of secured loan, in the personal loan, you do not have to provide any surety to be eligible to avail of a personal loan.

The eligibility criteria for a personal loan would be that the applicant would have to be above 18 and less than 65 at the time of the loan maturation. The documents required to avail a personal loan are the same as what you would submit to avail of any kind of loan. But you need to be really careful and well prepared about your CIBIL score.

Conclusion: 

Both gold and personal loans have their own advantages and disadvantages. But the applicant has to keep in mind the requirements for the two and decide which type of loan would suit their personal needs and preferences and to avail the loan accordingly.

Must Read:- Which Lender Is Best For Your Choices In Personal Loans? 

Relevance of Gold loan: Gold loan is availed by keeping the gold as a mortgage in banks or NBFCs. Gold is a valuable asset, so it is marked as an asset in banks. The market value of gold is surging its prices. Gold is found rare in nature but has a high demand. There are idols of gods in Indian temples made up of gold, making them more significant and worthy.

Gold loan process:

This procedure can be carried out both online and offline:

Offline: One has to visit the bank and enquire about gold loan eligibility. Document verification is to be done by submitting two photographs along with Identity proof and Address proof. The bank representatives evaluate the gold purity test for assessing the impurities present in Gold. The loan is sanctioned based on Gold's evaluation. An authorised letter is issued to the borrower where bank details, loan amount, interest rates, prepayment options, foreclosure charges, loan tenure, repayment options, gold rate per gram, etc., are mentioned. Once you have deposited the gold safely in the bank, the loan amount is credited.

Online: Complete an online application form. The application can be filled from the official webpage or app. The inquiry can be made online. A bank representative will call you shortly and schedule an appointment for a bank visit. You have to carry Identity proof and address proof and two photographs and gold for the purity test. Afterwards, on evaluation, The gold loan is sanctioned.

Gold loan eligibility: The eligibility criteria are present for availing loan. The loan can be acquired for agricultural purposes and non-agricultural purposes. Canara Bank gold loan has three schemes.

Agricultural Jewel Loan Scheme Agricultural purpose: Farmers or agrarian labourers can acquire it by showing proof of agricultural land. Punjab and Sind Bank's gold loan offer low interest rates for this purpose loan. This amount has to be used only for agricultural purposes.

Non-Agricultural Jewel Loan Scheme Non-agricultural purpose: This can be acquired by self-employed, salaried, businessmen, homemakers, etc. This amount can be used for business expansion, travel purposes, higher education, personal use, etc.

Repayment: 

The three repayment options are given:

Post Dated Cheques: The cheques are issued on a future date and can be issued to the nearest branch if you are not a Bank customer.

Electronic Clearance System: The digital transfer is done from another bank monthly. Debit Mandate or standing instruction, an instruction given to the bank to make payments from its account or some other bank at a regular interval.

Benefits:

No credit score is required. As gold is kept collateral, no other details are needed.

No income proof is required.

Use of the amount with no restriction.

The loan is processed much more quickly than other loans.

It has low-interest rates of 10.00% – 16.00%.

No documentation charges are required.

No foreclosure charges are present.

Repayment options are given.

A loan amount of up to 15 lakhs can be sanctioned.

Gold loans applied online are convenient for senior citizens and disabled people.

Safety of the Gold: We value you because gold is your most precious asset. In the bank lockers, we keep your belongings safe. Vaults in banks are heavily guarded. Security cameras are used to keep an eye on them. Lockers are secured with unique keys. This room is only accessible to bank officials. The lockers are made from durable metals that are difficult to penetrate.

Gold rate today has been seeing some momentum since the beginning of the year. This is on the grounds that, equity markets got hammered toward the beginning of the year, which pushed financial backers to put resources into a place of refuge asset like gold. The valuable metal may not be a top pick over the most recent couple of years, as prices have moved in a tight reach. A fall in equity prices toward the beginning of the year, considered some to be too gold as a venture.
Read More:- Know About Gold Rate In India