A vast number of Indian households purchase gold for religious and auspicious events and deposit it in bank lockers. Individuals who are aware of the value of gold in the domestic market, on the other hand, use the gold held in bank lockers to obtain a gold loan and sufficient finances from lenders such as banks and NBFCs. A loan against gold provides instant cash that is authorized in 5 minutes and paid into the borrower's bank account in 30 minutes. Lenders make loans based on the entire worth of the gold jewelry, with no requirement for external security. The borrower is completely free to spend the loan amount without having to justify the nature of each spending. Gold loans give quick money based on an otherwise inert asset.
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