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Almost all the families of the Indian middle class has gold jewelry, which is essential for weddings and rituals, and few have always been willing to part with it to obtain loans. But with the high gold prices, banks have begun to push customers to loans of gold. Transactions have become more popular than small personal loans dried up due to increased risk of default on the loans.

"India is one of the largest consumer of gold in the world, and about 90 of gold in India lies with people, not banks, "said Biju Pillai, executive vice president of HDFC Bank, which has large lending between banks of gold in India. "But the paradox is that gold product of the least leveraged loans. We want the gold out of the closet. The bank title = "loans or"> Gold Sales rose 55 per cent of loans last year, he said.

The market is huge, but it is also the cultural wall.

Over the years, many Bollywood movies have reinforced stigma impressive portrait of the sale of gold as a sign of the inability of a man to make a living. Taboo is so deep that the Indians were surprised to shame in 1991 when the government promised gold abroad to borrow money during a crisis.

Thanks a television channel, radio and newspapers in recent months, banks and finance companies aggressively pushing the Indians to abandon inhibitions. Many ads show women initiate the decision.

As gold prices have increased over the global economic slowdown, the Indian middle class have returned their preference for gold as a safe investment secular After briefly flirting with the stock market and mutual funds.

Bankers say that the default is much lower for gold loans, because the Indians did not want to risk losing their family jewels. And unlike the title = "Personal Loan"> personal loan no credit check for loans of gold.

"Get a loan of gold is approximately 6.4 percent less expensive to obtain loans Standard Bank. We take five minutes, but a loan usually takes several weeks of paperwork, "said KR Bijimon, Director General Muthoot Finance Chief.

Banks now want to convince young Indians than gold as security is a smart and not as a last resort.

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