Indians Pawning the Family Gold Amid Credit Crunch
By Rajendra Jadhav and Nupur Anand
Thursday, August 22, 2019
Refused a loan by a state-run lender and desperate for funds to buy cotton seeds before the summer sowing season window closed, Indian farmer Babasaheb Mandlik ran out of choices -- he pawned his wife's gold jewelry.
Mandlik, who owns an 8-acre cotton farm in western India, pledged 70 grams of gold, almost all his wife's precious trinkets, in June in return for 150,000 rupees ($2,105).
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"Pawning the jewelry was a difficult decision as my wife likes to wear it at festivals and weddings," 50-year-old Mandlik told Reuters. "I convinced her that we didn't have any other option." Mandlik is not alone. While pawning gold has long been an option for quick funds in a country that is the world's second-biggest consumer of the yellow metal, several lenders told Reuters of unprecedented demand as people struggle to secure loans from banks grappling with bad debt and a shadow lending industry stung by a liquidity crunch. The trend, which has prompted some lenders to impose restrictions as risks and borrowing costs rise, has been accelerated by record gold prices. ... ... For the remainder of the report: https://www.reuters.com/article/us-india-gold-loans/indians-pawning-the-...
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