The temporary suspension of an activity or until future consideration lifts such suspension or issues regarding the same have been resolved is a moratorium. It can be considered as a waiting period before the debtor starts paying back fixed monthly EMI. This facility can be availed when someone struggles to manage finances after taking up a loan. Even after the moratorium period is over, debtors can opt for loan restructuring schemes that banks have started offering per the Reserve Bank of India directives.
During the period of the moratorium, the interest is not waived off. Still, it accrues on the outstanding loan amount, and the individuals have to pay the additional interest on the months for which the EMI moratorium was taken. Borrowers with MSME loans, education loans, housing loans, durable consumer loans, credit card dues, automobile loans, gold loans or any personal loans are eligible to moratorium provided that the loan accounts have been sanctioned with the limits and the outstanding amount does not exceed Rs 2 crore.
According to the directives of the Reserve Bank of India covid-19 regulatory package, Banks and NBFCs can extend moratorium involving deferment of instalments for three months in case of gold loans. The customers can thereby defer their immediate monthly instalments or EMIs. This monthly instalment for a gold loan can easily be calculated with the help of the Gold Loan Calculator.
The repayment of the loan thereby can be done in lump sum amount by the debtor, or he can ask the creditor to add these to the outstanding loan and increase the EMI for the remaining months.
After the US-China trade war, interest rate cuts by various Central banks worldwide, economic slowdown and increased gold prices, the demand for gold declined. Investors nowadays are looking for safe gold investments after watching the worsening economic scenario across the whole world. There is a high chance of price afloat after the slowdown in global growth with geopolitical stress. But, some gold investments are still safe, like digital gold, Indian gold coins, gold ETFs, sovereign gold bonds, etc.
The value of gold has always been high because of its lustrous and metallic qualities, relative scarcity, and difficulty of extraction. Therefore, gold has always been the logical choice for the exchange of goods and services from the historical era. The attributes of gold make it valuable at both tough and good times. And therefore, people mostly invest in gold and use it at times of economic hardships by keeping it with the lender and taking a gold loan or directly selling it to any jeweller.
Gold loans are accessible by pledging gold ornaments or Bank coins to a Bank or Financial Institution like SBI Gold Loan, PNB Gold Loan, Muthoot Finance Gold Loan, etc. The gold jewellery pledged are kept safely with the Bank and are given back instantly to the customers after the loan amount is compensated.
Loan applications of Rs 25 lacs or more impose document verification like ITR and PAN card of the applicant. And if the applicant’s annual income exceeds Rs 5 lakhs, a PAN card is compulsory, as per the Regulatory Guidelines. Anybody who has attained majority and has a sound mind and other legal competence can obtain a gold loan by submitting all essential documents for the loan. According to June 2021, for gold jewellery and gold coins of 18 to 24 carat, the Gold Loan per gram rate was Rs 4621.
Gold Investment, a high-quality insured asset used for obtaining speedier loan expenditures. In the default by the debtor, lending institutes liquidate the gold pledged as security of loan to restore their debts. As a result, loan applicants find it considerably simpler to obtain funds through gold loans than personal loans. There are many reasons for opting for gold loans. Fast Processing is a secured form of loan, specified eligibility provisions and manageable documentation jobs and no requirement of a good CIBIL and income proof of the applicant.