Kathmandu. It has been found that the number of people taking ‘gold mortgage loans’ by keeping gold in banks has increased. It has been found that the number of people taking ‘gold mortgage loans’ by keeping gold in banks to save their expenses has increased.
On Wednesday, gold was traded at Rs 2,91,800 per tola while silver was traded at Rs 4,740 per tola.
People have started opting to use the gold kept in their homes.TAG_OPEN_p_14 People have been taking loans with gold as collateral, especially for emergency expenses, business expansion, real estate purchases, and education and health needs.
Banks and financial institutions (BFIs) have also prioritized gold mortgage loan schemes.TAG_OPEN_p_13 Such loans have attracted customers because the process is simpler, faster and the interest rate is comparatively lower than other loans. Some banks have even provided minimal paperwork and faster approvals.
According to an official of a commercial bank, the demand for gold mortgage loans has increased by about 30 TAG_OPEN_p_12-40 percent in recent years. Small and medium-sized businesses, in particular, are more attracted to it.
However, experts have advised caution.TAG_OPEN_p_11 Although it is easy to take loan due to the rise in the price of gold, there is a risk of the price falling in the future. If the price falls, they say, the price of the mortgage could fall and there could be more demand for mortgages, or the risk could increase.
On the other hand, with the rise in the price of gold, the number of customers buying jewelry has decreased, according to traders.TAG_OPEN_p_10 Even as weddings and festive seasons approach, customers seem to be in a wait-and-see mode. Overall, the rise in gold prices has attracted investors on the one hand and encouraged the general public to adopt new ways of financial management.
