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How Gold Loans are taking the Digital route to make way for New Age lending
Smartphones and apps have taken over most aspects of our lives. Be it for entertainment, education, earning, or the smooth running of our daily lives, we cannot do without technology. Technology is bringing groceries, medicines, school and college curriculum, office work, business and so much more right to our homes. With the click of a button, we can get most things done almost instantly. Gone are the days when you had to physically go out to get mundane tasks done. Although technology has always been present, the last few years have seen an exponential growth. The emergence of fintech players has made us digitally savvy. Book a cab, order food, plan a trip, enroll in a class or just about anything- all you need is a smartphone or a computer. The same goes for loans against gold too.
Lenders today offer digital gold loans right at your doorstep. You can find out your gold loan eligibility, gold loan per gram offered by the lender, the various schemes, gold rate, etc on the lender’s website or mobile application. What’s more- you can also calculate your estimated EMI via the online Gold EMI Calculator. The digitization of the entire process ensures that your financial needs are met swiftly and reliably.
What is a Digital Gold Loan?
Imagine you require some immediate business capital funding for your startup. And you want to take out a loan against gold jewellery. What would you like to do next? Would you rather make multiple visits to a gold loan company enquiring about the schemes, fill up countless application and KYC forms, physically carry your gold to get it appraised, and wait for your loan to get approved and disbursed? Or, you apply for a loan against gold online; complete all formalities seamlessly at home, and in no time the loan amount is credited to your bank account. If your answer is the second option- that is precisely what digital gold loan is. A digital gold loan is nothing but completing all formalities involved in a gold loan, from start to finish, without having to physically visit a gold loan branch.
Steps in a Digital Gold Loan
Think of digital gold loans as the ultimate customer delight experience that involves minimum human intervention and the least degree of inaccuracy.
Step 1: Go to the lender’s website or mobile application. Browse through the different schemes, find out your gold loan eligibility by inputting a few simple details, and then calculate your estimated EMI via the online gold EMI calculator. Based on the gold loan that suits you the best, submit your application online and schedule an appointment with a gold loan executive.
Step 2: A well-trained and knowledgeable executive visits your home to complete the remaining formalities. He/she then appraises the gold articles you wish to submit as collateral for the digital gold loan.
Step 3: After the appraisal is done, the executive helps you with the documentation process. Based on various parameters such as your gold loan eligibility, gold rate, weight and purity of gold, etc, gold loan per gram is calculated. Once the loan amount is approved after completing necessary checks and due diligence, the executive requests the office to release the sanctioned loan amount into your bank account.
Step 4: The pledged gold is then carefully labeled, documented, and sealed. It is then securely transported to the gold loan branch to be stored away in a high-security vault.
Benefits of a Digital Gold Loan
How does a digital gold loan score over a traditional one? Let’s take a look.
Convenience: There’s no need for you to physically visit a branch, fill up cumbersome paperwork and go through a lengthy process to avail of a loan against gold.
Safety: The lender’s representative visits you at home to get the gold valued. It eliminates the possibility of theft or robbery if you had to physically carry the gold valuables to the branch for appraisal.
Minimal Documentation: You are required to provide only basic KYC documents such as an ID and address proof. There’s no need for bank statements, credit reports, income proofs, ITRs, etc.
Quick Approvals and Disbursals: Since the entire process is automated and all customer data is available on the Gold Loan Management System, loan against gold approvals are super fast. The loan disbursal can take as little as 30 minutes post-approval.
Easy Repayment Options: The online gold calculators give you a fair idea about the gold loan per gram, gold rate and also estimated EMIs. The repayments can be easily done online or by setting up a Standing Instruction with your bank for monthly deductions of EMIs.
Safe Storage: Your precious gold articles that are given as collateral for the gold loan are mandated by RBI to be stored in vaults with a stipulated level of physical infrastructure and security measures.
Besides ease of doing business, digital gold loans assure you of complete peace of mind, and isn’t that all we want?
About Muthoot Finance
Muthoot Finance has emerged as one of the most trusted financial services brands in India. The array of products and services offered by them, especially digital gold loans, is unparalleled. Muthoot Finance offers the best rates of interest for gold loans Applying for a gold loan has never been easier. You can easily calculate your eligibility online via the very efficient Muthoot Finance Gold Calculator.
Think Gold Loans, Think Muthoot!
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