Gold Loans; Ensuring Economic Recovery after the Pandemic

The Coronavirus Epidemic has not only been an aspect of health concern where millions of people all across the globe have lost their lives but the epidemic has also had a tremendous impact on the economic environment of the country causing harm to the economic set up of the country. The Coronavirus Epidemic has been a menace on human society being the prime reason behind inflicting mental, physical and economic suffering for people all across the globe. The economic shutdowns of banks and other financial institutions, the closure of business exchange activities all across the globe, and the complete stoppage of transportation of goods and services from one place to another have brought about misery on the fate of the middle-income people who have suffered the most during this period. 

However, when the finances have been at an all-time low it has been the gold loan facilities that people have resorted to when initiating business decisions and engaging the financial elements so that better resource utilization can lead to better economic environment growth leading to economic change and diversity. The proper application of the loan facilities, especially the two primary forms of loans- personal loans and gold loans have played a very crucial role in the implementation of the credit mechanism in the country thereby bringing about stability in operation. Following are how gold loans have ensured economic growth in the country post the Pandemic situation-

• Increase in Disbursal Rate of Gold Loans by Banking Institutions- The banking institutions in the country have played a major role in the increase in the disbursal of funds and resources so that consumer demand criteria can be fulfilled. This has helped during times of recession in the economy. When the economic indicators have hit an all-time low, the consumption power of the borrowers has reduced significantly. They have been unable to finance credit operations which have further led to the creation of an environment of instability in the economy. During such situations, the disbursal rate of gold loans from the banking institutions has mattered the most. 
  
  
  During such phases of depression, the banks have increased the rate of disbursing their gold loan facilities. Faster transactions of the loan amount have accelerated the process of lending and have helped the borrowers cope up with the economic downswing prevalent. For faster communication, you can also contact on 1800-425-0018 which is Canara Bank gold loan contact number. 

• Reduction in the Interest Rate- Another important step that the banking institutions have taken to wriggle the economy out of the pandemic is to address the criteria of interest rate that is prevalent for gold loans in the country. Interest rate refers to the fixed percentage of the gold loan amount that is payable by the borrower to the banking institution to secure the loan and the collateral security deposit along with it. The interest rate reduction has decreased the amount of interest in monetary value that the borrower pays to the banking institutions. This has left more money in the hands of the borrowers which can further be used for consumption and simultaneous investment in the economy. Therefore reducing the existing rates of interest has been considered to be a great move to inject liquidity into the economy during such times of depression. 
  
  
• Granting Loan Moratorium- Finally, the banks have emphasized the move to grant loan moratorium to the borrowers who have taken gold loans from the banking institutions. Moratorium refers to a relief period offered to the borrowers for 6 months or 3 months, allowing them the opportunity to save money during that tenure and use the saved money judiciously for a consumption purpose. 
  
  
  Although the times have been difficult to post the Pandemic situation, the gold loan facilities have been instrumental in developing the economic environment of the country. Loan facilities in the country have come as a savior at this point helping the economy recover from the depths of depression that we have witnessed over the last year and a half.                                                                                                                                       Also Read:- Secrets of Gold loans even in this down economy