Cross-check with multiple lenders for accurate valuation of gold loan

For fairer assessment, select a lender that uses an external assayer

Two developments in the recent past have put gold loans in the spotlight. Kotak Mahindra Bank forayed into this rapidly growing segment (17.4 per cent growth year-on-year, according to the Reserve Bank of India’s [RBI’s] data of January 26). Meanwhile, the regulator debarred IIFL Finance from disbursing fresh gold loans due to “material supervisory concerns”. 

Flexible repayment options

The primary appeal of these loans lies in their low interest rates as they are secured loans. Borrowers also do not need a good credit history. “Lenders are happy to lend even in the absence of a credit history due to the