The RBI has not changed the key policy rates on Friday and also repeated the intention of maintaining the accommodative stance.
This whole event circulates towards the conclusion that the interest rates are likely to continue as they were prevailing before.
Further, as lower interest rates are not good for depositors especially senior citizens but it means lighter interest burden would continue for the borrowers.
Public sector banks come on the top of the list when it comes for offering cheapest loans across all categories.
However, mortgaging idle assets such as gold, has become a more prudent way of fund-raising during crisis.
Gold has been always considered to be a crucial asset in all forms, hence it is better to utilize it rather than taking personal loans.
There are two banks which are offering the lowest interest rates on gold loans. These banks are Punjab and Sindh Bank and the Bank of India.
Currently, Punjab and Sindh Bank is only charging 7 percent annually for gold loans with a tenure of three years.
These charges apply for the gold loans estimating around Rs 5 lakh.
On the other hand, NFBCs which are solely active in this business charge much higher interest rates on cheapest loans. These loans range in between 9.24 – 12 percent on annual basis.
However, the IIFL Finance offers the lowest rate amongst all NFBCs at a rate of 9.24 percent.
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