To obtain a gold loan one has to pledge the gold either with a gold loan company like Muthoot Finance and Manappuram Finance or banks as the case maybe.
What precautions gold loan companies take to protect the pledged gold?
Once the gold loan is disbursed and the gold taken in possession of the gold loan company it is is their responsibility to ensure safety of the gold. And remember these companies deal in large of amounts of gold quantities everyday.
Gold ornaments that are this accepted are stored at the branches of the respective gold loan company. It is stored in strong cash safes and inside a strong room built to the standards and specifications applicable to commercial banks.
What is most important is that the jewellery, gold biscuits etc., are all insured for the full amount. So, in case of theft it is up to the gold loan company to chase the insurance company and get back the money.
There are security personnel that are employed and electronic surveillance technology are also undertaken for constant monitoring.
One has so far not heard of any untoward incident of gold being tampered or stolen from the premises of a gold loan company. What happens in the future is difficult to predict, but thus far there has been no cases of theft or tampering.