Bhaskar News Service
New Delhi, Sumit Sharma Founder – Radian Finserv explains how digital technology is reshaping the gold loan industry Indians have a special affinity for gold. Gold has been an integral part of our culture and traditions and has often been passed down from one generation to another as a legacy. It is also a popular investment option, with Indian households holding 25,000 tonnes of gold, worth over $1.5 trillion. The gold loan market in India has grown rapidly in recent years, meanwhile providing gold loans at the doorstep of consumers has become a challenge in the industry.
Traditionally, gold loans are offered by banks or non-banking financial companies (NBFCs) through physical branches. The consumer has to visit the branch of the bank or NBFC to avail the loan. The process is cumbersome and often time consuming and the consumer has to walk to the branch with the gold, process the documents and wait for the loan to be disbursed. But due to the recent reforms in this process, the process of taking the loan has started taking less time.
Consumers can avail the convenience of home loans today, with the entire process being done in a very easy and convenient manner. Such gold loans are secured loans, the bank gives this loan by pledging gold, but the process of taking the loan is completely digital. Some consumers feel embarrassed to visit the bank branch for gold loan, in such a situation, home loan facility solves this problem. The entire loan process is completed with ease.
Consumers can apply for Gold Loan through their mobile device, desktop or computer. Very few documents are required in the application process, they have to upload their identity proof, address proof and gold valuation certificate. After this the platform verifies the documents and gold valuation. And the loan is approved within a few minutes.
This facility of home loan is very easy and convenient as compared to the traditional process. In this, the entire process is done easily from the comfort of the consumer’s home, the loan amount is also available quickly, as well as the repayment options are also easy. Consumers can track their loan status, make online payments.
Companies are using digital technologies to provide cutting edge financial products and services to their customers. These include mobile apps, online loan calculators and loan management tools. All these products enhance the consumer experience.
Digital gold loans are especially preferred by young and tech-savvy consumers, who want to avail financial products and services through digital channels. Financial inclusion is also getting a boost due to the growing popularity of digital gold loans. Today even people from rural and remote areas can easily take advantage of these services, which were earlier deprived of these services.
Traditional financial products such as personal loans and credit cards are often the first choice of consumers. They take such loans at high rates, which are neither practical nor affordable for them. On the other hand, Gold Loan is easily available at low interest rates, easy to repay, requires less documentation, thus making it a good option for customers to meet their credit needs. Since this loan is available against the pledge of gold, the consumer repays it responsibly. This also improves the credit profile of the consumer.
Overall, the convenience of digital gold loan at home is not only easy and effective, but is also promoting financial inclusion by benefiting a large number of consumers.
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