Festivities this year are muted due to the existing Pandemic situation which has robbed us not only of our joys but also our finances. The draining of financial resources has taken away a large chunk of our income. Loan facilities have come as a harbinger to save us from absolute ignominy. India being the global cosmopolitan hub has been the home for the most prehistoric religious practices and festivities for well over thousands of years now. Attaining the title of being one of the most culturally diverse countries in the world.
India has earned the distinction of being a true poster body for the celebration of festivities and festive season all across the globe. However, we as a country find ourselves in precarious situations owing to the impending circumstances due to the economic cloud of Coronavirus which has engulfed all our sentiments and happiness.
We have been deprived of our practices of organizing festive programs with our near and dear ones thus closing the lid on the happiness that we might have attained in the process. Disruption in the economic situation has been the prime reason behind the stoppage of festivities all around the country as well as the world. Thus the time and opportunity have come forward when the banking institutions in the country have started several financial schemes to induce consumers to take personal and gold loans during this period.
Following are the facilities that are found associated with the gold and personal loans to be availed:-
- Offering Attractive Rates of Interest
The biggest advantage that has been offered by the banking financial institutions of the country is the administering of personal and gold loans at attractive rates of interest. Rate of Interest can be defined as the rate or amount of money which is a fixed monthly charge compounded on the amount of money that is taken as the loan. The interest amount is payable every month or every quarter. The City Union Bank Personal Loan have decided to encourage more loan bearing by the consumers by offering significantly lower rates of interest thereby inviting customers to take more loans from the banks. The availing of more loans would increase the liquidity of the credit condition in the economy. - Supporting consumers with funds in times of crisis
The festivity schemes have brought about an all-inclusion policy whereby the people belonging to all the economic strata of the society would have an equal share in the country's fortunes and losses. In times of festivities, consumers like to spend money to buy electronic items, go shopping, or spend money or order expensive food. The banks have induced small scale loans so that the consumers availing these small scale loans can undertake their necessary regular expenditure with this amount of money. - Improving the productivity of companies
The banks are not only entrusted with the responsibility of seeing to or attending to the needs of the consumers but it is also their responsibility to see that the companies engaged in the production of goods and services consumed mostly during festivities are generating operating profit to run their regular business procedures. Thus the banks have provided companies with loan facilities of the requisite amount so that they can use this money to pay off fixed and operational expenses.
Thus the banks must play a critical role in the development of the financial condition of the economy through the leveraging of personal and gold loans as they bring about operational facilities. Gold Loans provided by Muthoot Finance Corporation during such tenure has offered attractive interest rates and has also reduced the criteria of collateral security so that the consumers interested in availing this facility can keep a small amount of collateral and avail of the loan. In the case of a personal loan, since no collateral is required all that is required is perfect documentation on part of the interested borrower. Complications in submission procedures of documents have been reduced considerably thereby encouraging people to take more loans.
Also Read This-Everything you've ever wanted to know about gold loans
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