A K Rao
Active member
Previously people used to get their loan by mortgaging their gold to the money lenders. The rates of interest used to be too high and it would entirely depend on the money lender to ascertain about the purity of the Gold. The Gold thus mortgaged was supposed to be returned without fail within the stipulated period of contracted which otherwise could have subjected to confiscation.
But now this business has been taken over by big financiers by opening corporate companies which are public sector. Public limited companies, since they run under license by the government there is an open contract between the financier and the party taking the loan.
With this arrangement things become easier for the financier and the party interested in availing the loan. These companies they get the morgaraged gold from the market if the owner is interested and they purchase the Gold.
We in India have many such Gold Financiers and people are availing advantage of these companies apart from the Banks!
But now this business has been taken over by big financiers by opening corporate companies which are public sector. Public limited companies, since they run under license by the government there is an open contract between the financier and the party taking the loan.
With this arrangement things become easier for the financier and the party interested in availing the loan. These companies they get the morgaraged gold from the market if the owner is interested and they purchase the Gold.
We in India have many such Gold Financiers and people are availing advantage of these companies apart from the Banks!