Bursting The Myth About Gold Loans Gold loans from banks and NBFCs may seem like a new concept to many, but in reality, it is not so. In India, getting loans against gold is a time-honored tradition. Since Indians traditionally do not like to part with their gold which they consider auspicious, instead of selling it off, they have always preferred to seek loans in emergencies by giving gold as collateral. Although getting a loan against gold is a convenient option, few people avoid availing it because of certain misconceptions.
Firstly, people are afraid to opt for this loan as they feel that their ornaments will be swapped for fake pieces or may get lost. When the loan is availed from a registered gold finance company, this never happens as the RBI has strict rules regarding the same, and the banks and NBFCs offering the loans are also extra careful about the safety of the products.