When gold became expensive, the crowd of loan takers increased, this CRISIL report surprised everyone.

News India Live, Digital Desk: If you have seen the prices of gold in the last few months, you must have been confused. Gold prices are at their peak. But the interesting thing is that as gold is becoming expensive, gold loan giving companies (NBFCs) are buying silver. Recently a CRISIL report has come out, in which it has been estimated that by FY27 (year 2027) the gold loan market will cross the figure of ₹ 4 lakh crore. After all, why are so many loans being taken against gold? To be honest, the biggest reason for this is the rising prices of gold. When gold prices increase, you get a higher loan for the same weight of gold than before. In technical language it is called ‘Higher Loan to Value’, but you should understand it like this that till yesterday you were getting Rs 50,000 on the same channel, today you are getting Rs 70,000 or more. Why are more people running to NBFCs than banks? In India, gold loan companies like Muthoot Fincorp or Manappuram are very famous. The reason for this is that the method of getting a loan here is very easy. The paperwork in banks takes a little longer, but these companies give you cash or bank transfer in half an hour. It has become like a lifeline for the middle class and small businessmen. What else is special in CRISIL’s report? CRISIL believes that in the coming two years, these gold loan giving companies (Gold Loan NBFCs) will grow at the rate of 17 to 18 percent. Earlier people used to think that mortgaging gold was not a good thing, but now it has become a part of ‘smart finance’. People consider it better to take a gold loan instead of taking a personal loan because the interest rates here are often low and there is not much hassle about your CIBIL score. An important advice is that taking a gold loan has now become easier and more attractive than before, but it is equally important to be careful. Since gold is expensive now, even your small loan turns into a huge amount. If you are not able to pay the money on time, then the risk of losing those ‘memorable’ jewelery increases forever. The overall thing is that the gold market is going to get hotter in the coming years. Gold is no longer just a hobby but is on its way to becoming the biggest ‘ATM’ in times of need.