Nowadays, the gold loan is becoming a trap with gullible household  people. They falls prey with the strict and unavoidable terms and conditions and agreements.owadays, the gold loan is becoming a trap with gullible household  people. They falls prey with the strict and unavoidable terms and conditions and agreements.

Once seen as source of financial security, families are finding it tough to release pawned jewellery from gold loan companies, which resort to auctioning. Muthoot Finance recently brought a public notice in national newspapers for auction of 33,000 gold articles. Policy watchers point out that the rush to encash domestic gold articles is symptomatic of an economy under duress.

The year 2021 was the worst for Rajeev Roy (name changed on request). The private sector employee lost his job in Pune towards the end of 2020 after his company laid off employees to combat the economic cost of the pandemic.

He returned to his home state West Bengal and started looking for a job, but the deadly second wave of Covid-19 in 2021 ravaged his family. After both his parents tested positive, the medical expenses towards saving them brought the family to its knees. “Before falling sick, she (mother) made me swear that if she fell sick, her gold jewellery would be put to use,” recalls Roy. <<< Read MoreRead More >>>