Consumer activists favour nomination facility in loan against gold product
The Hindu
In case of death of a gold loan borrower, it is difficult to get back the jewellery, they say
Amid uncertainty caused by the COVID-19 pandemic, consumer activists have called for an introduction of nomination facility in the loan against gold scheme offered by banks and non-banking financial companies.
“The easiest way for people to raise money to tide over the hardship caused by the pandemic was availing loan by pledging their gold. When the borrower who has availed the gold loan dies, there is a problem in settling the outstanding amount and claiming back the pledged ornaments,” consumer activist T. Sadagopan said. The Reserve Bank of India should direct the providers of gold loan to offer a nomination facility at the time of availing the loan, he added.