Ongole: Falling gold prices worry bankers

Ongole: Falling prices of gold are worrying bankers and private finance companies, which sanctioned loans against gold. Earlier, bankers used to give Rs1,900 to Rs1,800 loan per gram against gold. Now, they are sanctioning Rs 1.600 to Rs1,700 per gram.

Gold biscuit which was previously sold at Rs 2,85,000 is now being sold at Rs 2.5 lakh due to drop in price. Market experts expect that the gold prices will fall further due to fall of prices in the international market.

Sources in the banks informed that various banks and private finance companies in the district had given Rs 3,000 crore loans against gold. Due to falling prices of gold, they are worrying about gold loans.

Private finance companies are sending messages and notices to clear their gold loans immediately. They are warning that if they fail to clear their gold loans, they would auction their gold ornaments. Those who have taken gold loans are worrying about falling prices of gold.

Some persons are paying some amount to bankers or private finance companies to avoid auction of their gold ornaments. The public sector banks are concentrating on commercial gold loans to recover their amount.

The banks are asking to clear the gold loans, those who have taken loans for commercial purpose. The bankers are not forcing those who have taken loans for agriculture purpose.
Lead Bank manager C.B.L. Narasimha Rao said, "At present banks are giving Rs1.600 to Rs1,700 loan per gram against gold. The bank will give less amount when compared to private finance companies. If prices fall, we ask to pay the gold loans. If they fail to repay, we will follow our procedure.”