What Is The Process Of Gold Loan Auction?

Gold loan schemes are financial products that allow individuals to avail of a loan amount by pledging their gold as collateral to the lender. Almost all Indian households hold some amount of gold as security for the future. There’s an age-old tradition of buying and gifting gold to celebrate special occasions. Gold, either in the form of jewellery or in digital form such as Gold ETFs, has been a popular investment and hedging mechanism. It is also true that Indians are averse to selling off their gold ornaments to generate cash. This has made gold loans so popular. Like in any other loan, you should avail of one only when you are confident of repaying it on time. If you are unable to do so, your pledged gold could be auctioned off to recover the loan amount.