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​Future of Gold Loan with Digitalisation

by Business Highers
Gold Loan

This is a novel era of digitalization, wherein achieving most of things has become very convenient. Digital vertical with its online system has provided an exceptional experience to you as a user looking to take benefit of the products offered by the lenders. One of the important products that you can avail of conveniently is a gold loan. There are many lenders of gold loans offering the lowest gold loan interest rate after evaluating your eligibility and the quality of gold loan offered as pledge. Don’t be surprised to know even the bank that you address as the best gold loan bank as per your preference may now be providing gold loans. ​After all, now is the era of digitalization.​​ 

The future of the gold loan is linked to additional digital integration of technology as well as new innovation. In our country, the usage of online payment options such as UPI and digital wallets has increased drastically. In the upcoming times, products like gold-secured cards and gold wallets too are likely to make their entry into the market.

In fact, many of the players that had previously announced the card facility and now are working at relaunching the same option in upcoming times. Lately, many of the Fintech players, mobile e-wallet companies, as well as brokers, have launched gold wallet options for customers allowing them to buy certified as well as pure 24-karat of gold. Today, buyers too may be able to make quick and simple money transfers as well as acquire a hassle-free micro loan service in no time. 

Industry players have even come up with a groundbreaking amazing solution, and there’s a continuous need to keep up the pace with advancing technology. These involve digital innovations such as online disbursement, online transaction access via the web link, and online, and mobile apps. Digital space has quickly transformed in the times and going near to the advanced techniques, which are basically customer-centric with apt controls over processes and operations. It will not be incorrect to mention that the cutting-edge banking systems and loan systems have endowed a much-required exposure to the finance companies and reached deeper areas and sections where the physical reach wasn’t possible with the limited presence. The digital journey is nothing short of the revolution in the banking arena and this will go on by including various new offerings and products to make life simpler and more pleasant. 

Also Check: Best Gold Loan Bank

Note that lending in an era, which is technologically driven, has simplified the complicated and tedious process that initially took many days into just a few minutes. Though the transition to the digital method was adopted by lenders right when the sector was on the cusp, credit even goes to the new-age fintech startups, who have been revolutionizing the space of lending for borrowers.

Digital lending has extremely streamlined almost all types of loans involving a gold loan, which is thoroughly dependent on the rate of interest and secured collaterals that you provide. Gold assets stay a preferable option of savings for many individuals as they can be redeemed simply at your convenience. Despite being the basic option, securing a gold loan traditionally was tough. The emergence of gold tech companies or startups has made the borrowing space considering gold a quick and easy means with the thorough financial security of assets. 

Apart from providing instant gold loan disbursals, the popularity of such fintech players are fuelled by prompt turnaround time, wider accessibility for the loan borrowers, and a customer-first approach due to the digital models. 

A few of the important key highlights of digital lending of gold are

Gold and NBFCs

For many years, the borrowers had heavily been dependent on local vendors or the traditional financial institution to get the loan. Today, the gold tech podiums are fostering the whole procedure to ease applicants with requirements for loans. Such players require you to submit minimal documentation and come with faster processing time, lower rates of interest, doorstep services, and gold asset security. Such digital methods help you as a borrower to secure loans in just minutes.  

The new age players and NBFCs have proved to be a way needed relief for the borrowers who heavily relied on unorganized lenders to get the gold loan. But the lack of consumer flexibility and convenience kept many borrowers away from the sectors, which were organized. Overcoming such challenges, organized lenders today account for 35 percent dominance in the market of a gold loan.

Technology plays a very crucial role

The fintech players concentrate and invest a high amount in technology to smoother the process and experience for the loan seekers, providing them with the finest level of tech-driven seamless, and overwhelming borrowing experience. The usage of data-driven facilities too allows the lender to analyze as well as comprehend the repayment potential of the borrower. 

Gold loan availability at the doorstep 

Thanks to the tech-driven financial players in the market, lenders now can take gold loans to the doorstep of the customer. This option is provided to wholesale and retail banking customers. Via branchless, and virtual models, the fintech players offer completely automated authentication, valuation as well as disbursal at the doorstep of the consumer. For those borrowers who want to avoid visiting the branch, this doorstep process is the best option for them.

Assured security

A guarantee of gold asset safety is of paramount importance for any loan customer. To make sure of this, the tech enables gold startups to have strict security processes via reliable, and privacy-sensitive networks wherein the assets are sealed cautiously in a packet that is numbered to avoid discrepancy and may just be opened for audits. This process is not just safe, which protects your security but even assists in inculcating the trust of the customer. Also, the customer can conduct due diligence, which involves extensive checks of their submitted collateral or security, avail real-time updates, etc. till the gold is handed over to the customer by the bank. 

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