I came across a client during my short stay at a bank. He was a very good customer for the bank and was having a long term association with it. He was planning to buy a house and I tried pitching him for a house loan. But he was pretty clear that he would take a loan against security and that too, security like gold. And he knew that Muthoot finance was a better deal for that. Though that deal was already gone, I was very curious to know the reason he chose a gold loan.
His answer was pretty simple. He was a small businessman running his business in a small part of the city. He wanted to invest in property because of the assured high return nature. Moreover, he always wanted to own a house on the better side of the city. He had not planned yet if he wanted to move into the new house or sell it off after possession. But he knew that investing there is risk-free. Also, he had his family gold lying in the bank lockers for ages. He didn’t want to get rid of it but wanted to use it better, so a gold loan was a perfect fit.
Moreover, he had already used the same gold some five years back to avail the overdraft facility for his business. His experience was hassle-free because the gold loan was the quickest than the other loans available. The documentation process – which included identification proof majorly- was fast and the loan disbursement happened within a day. Also, the rate of interest was lower for a loan against some security. And he wanted to avail that.
My banking career of two months made me learn a lot. I learned a lot from the customers than from the bank. The investment strategies, the various aspects of loans and the simple banking services – the three things that I learned and plan to implement in my personal life. And the most important lesson that I learned was that gold is the best investment – higher returns assured as well as it is the friend in need!