How are Millennials availing benefits of loans on their gold assets?

As a secured loan, the rate of interest on gold loans is not only lower than most of other loans, but a borrower may also save on locker rent, insurance premium etc, when the gold is mortgaged.

Apart from saving on interest and holding costs, getting a gold loan is also easy.

“Taking loans on gold assets has conventionally been associated with rural and lower-income groups. However, the rapid digitisation of gold markets propelled by innovative players has certainly made gold loans enticing for young millennials, who are taking a keen interest in utilising their gold assets to fund their personal needs,” said Rajesh Shet, CEO and CoFounder of SahiBandhu.

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Shet lists the following benefits of taking a gold loan:

A Smart Move

Primarily, millennial consumers are seeking gold loans as they realise this is a smart move. They prefer to take loans against the gold which is sitting idle in their lockers or at home. The whole process is quick, and they get a loan sitting at home in just 30 minutes. Since the interest on gold loans is paid only for the days the money is borrowed, this makes it an extremely convenient choice for young professionals irrespective of their pay grade.

Cheaper

Instantly disbursal gold loans are also great backups for personal exigencies, saving the consumers from the exorbitant penalty charges levied by the card companies, while also helping to maintain a good credit score which can later come in handy for a car or home loan.

Convenient

While millennials might not possess a big store of gold jewellery, digitisation of gold markets has provided them access to online gold loans, which can be accessed at any time, from anywhere with just a mobile device. A minimum credit score is required to avail of a gold loan.

Additional Benefits

Online gold loans also offer an overdraft facility as and when needed, which adds to the convenience offered by them. During any financial emergency or even day-to-day operations, a customer can seek a loan against gold, right from where they are. The cash can be withdrawn directly to the customer’s bank account as soon as the online gold loan account is opened, which can also be closed as conveniently once it is repaid.