Many small business owners and families affected due to the pandemic resorted to gold loans as they are an easy form of credit. For example, Punjab & Sind Bank offers gold loans at 7.00-7.50%, Canara Bank at 7.35% and Punjab National Bank at 8.75-9.00%, according to data from Paisabazaar.com. Among NBFCs, IIFL Finance offers gold loans at 9.24- 24.00%, Manappuram Finance at 12.00-29.00% and Muthoot Finance interest rates are up to 29%. In gold loans, interest rates are an essential factor to consider as they vary widely. For example, many lenders, like Punjab & Sind Bank, Canara Bank and Punjab National Bank, offer gold loans for up to one year.

Source: Mint July 10, 2021 12:33 UTC