With the emergence of new-age fintech platforms supplying immediate and straightforward loan disbursal, securing a loan has in no way been less complicated. From supplying e-KYC at the customer’s doorstep to immediate loan disbursal, borrowers can avail loans against their gold from the comfort of their properties. Typically, the identical procedure would need the borrower to go to moneylenders, even though carrying the collateral to be submitted with them. However, not any longer.
In the previous year, lenders have witnessed a substantial surge in the demand for loans against gold as borrowers faced an quick and short-term money crunch. In most scenarios of an quick economic crunch, the foremost step one requires is either liquidating or taking a loan against their precious assets to retain the money flow in motion.
In the wake of the worldwide pandemic, not only people but various firms have also been impacted. With social distancing and security protocols in spot, securing gold could have been difficult if gold-tech startups did not step up. Let’s dive into some insights to fully grasp digitally secured gold loans:
Digitalizing Transactions
One of the most prominent benefits of availing gold loans on-line is the unparalleled comfort that comes with it. People who earlier had to commute to jewellers or bank branches even though carrying their precious ornaments with them can now use their smartphones and request for a consumer relationship executive to go to their premises and clarify the several gold loan schemes.
With the branchless digital models of new-age fintech players, shoppers can apply for loans on-line or by means of apps. A loan manager visits the properties of borrowers, conducts due diligence on the borrower and their ornaments, and transfers the loan quantity to the borrower’s account, all inside a span of 30 minutes to an hour.
Security checks
The relationship manager going to the borrower requires to guarantee that the complete transaction is completed by way of digitally secured and trustworthy implies. The identity verification of the manager, E-KYC, E-signing of the loan agreement and the digital disbursement of loan requires spot by means of the implies of a verified and secured network. Customer’s information is normally stored in a safe database to guarantee information safety.
Additionally, the most vital element of the transaction is making sure the security of the customer’s assets. Gold ornaments are packed in sealed packets that can’t be tampered with by the loan manager. The packets are also serial numbered and recorded in the transaction. They can only be opened by the banking partners for second audits and when shoppers release the gold.
Therefore, gold-tech players guarantee that these assets are securely managed by means of technologically driven checks and assessments to safeguard customers’ trust.
Easy Payments and Top Ups
Further to the loan disbursement procedure, shoppers also have the alternative of creating on-line transactions even though re-paying the loan or even though paying interest prices. Reliable, digitally-enabled processes are driving the reputation of these tech-enabled gold loan service providers.
Additionally, taking a leading-up on any loan normally needs a couple of documentation processes exactly where borrowers will need to go to the bank to close the deal. Gold-tech startups simplify the procedure by means of technologically driven implies, exactly where the borrower does not have to go anyplace, and the complete procedure can be completed from home.
Low-Interest Rates and a Customer-First Approach
Most fintech players in the gold loan market give low-interest prices owing to the much less operational expenses involved in managing branchless digital models. Additionally, gold-tech lenders in the market give versatile, customizable pre-payment and repayment schemes. This enables the borrower to be at an benefit with new-age fintech players and NBFCs in comparison to conventional lenders.
More importantly, these lenders allow economic inclusion for tiny ticket borrowers who are frequently made to stand in lengthy queues and go from desk to desk by creating loans accessible and hassle-cost-free. The procedure to avail of the loan digitally is rapidly, straightforward and handy for the consumer.
Driving the way forward
The use of technologies has led to more rapidly loan processing, precise gold valuation, safekeeping, and expense-cutting. A robust consumer service assistance is also a way in which these firms guarantee smooth gold loan delivery.
Customers who face any concerns can get in touch with the consumer care division who will resolve their situation inside the stipulated time. Fintech startups are, as a result, playing a pivotal part in paving the way forward to make the market more inclusive and handy for the consumer.
by, Ankur Gupta, Founder and CEO, Ruptok Fintech