Who Offers The Best Digital Gold Loan In India?
Individuals look for the best gold loan companies for easy processing & quick disbursals. If you are planning to take gold loans, know the complete details on digital gold loan here!
Gold loans have been offered in India by local moneylenders for centuries. Even organised lenders such as banks and non-bank finance companies have been offering gold loans for decades. But the Covid-19 pandemic has changed the way a borrower can avail a gold loan.
Gold loans have gone digital where the process of taking a gold loan has been digitised by some lenders.
Some companies were quick to respond to the changing needs of the customer where there was a demand for a loan product but it required a new means of reaching out to the borrower.
Earlier, many borrowers used to opt for personal loans as it was being offered via a swift process but now with digital gold loans, it is the best way to borrow for short-term needs.
How Does Digital Gold Loan Work?
In simple terms, in a digital gold loan the process of availing, managing and repaying the gold loan is managed digitally and that too at the convenience of one’s home.
For borrowers, taking a digital gold loan is a very easy and convenient process that can be completed online within a few minutes. Here are the basic steps:
- One needs to apply online
- The lender processes the application by picking up and safely storing gold jewellery as a security
- Disbursement of the sanctioned loan amount is done digitally into the borrower’s bank account
- The borrower can monitor, manage and repay the loan digitally
- The loan account closure can be initiated online and the borrower gets back the gold jewellery
Who Offers Digital Gold Loan?
Most Indian banks only offer the conventional gold loan product. Many non-bank lenders also expect a customer to come to them rather than making it a smooth and time-saving process by going to the borrower.
However, a few non-banking financing companies have come out with a custom product of digital gold loan by digitising the entire process from application to disbursal to repayment.
Is Gold Loan Truly ‘Digital’?
Some lenders claim to provide a digital gold loan just because they allow the initial application to be made online. But the whole experience is driven in the old-fashioned way, where a customer still has to visit the branch and go through a long-drawn paperwork and process to actually get the money into the account.
For instance, Muthoot Finance says one can apply online. But the access to online gold loan amount will be opened only after completing the registration process at the branch.
In the case of Manappuram Finance, the process starts by ‘safe-locking’ the gold ornaments a borrower has at his or her disposal at a branch. The borrower then can register for online gold loan service.
However, in the case of IIFL Finance, the process is 100% digital. One can apply online and a representative of the company would come down to value and pick the gold jewellery. Against this, the borrower instantly gets a credit to his or her bank account. The loan can then be tracked, repaid and managed digitally, too.
Differentiators For IIFL Finance’s Digital Gold Loan
IIFL Finance’s digital gold loans allow borrowers to get a disbursal right at their doorstep. They don’t need to go to the lender’s branch and can hand over their gold to a company executive, who will come visit them, have it valued, and get the loan disbursed in just about 30 minutes.
The process at IIFL Finance is fairly simple where one just needs to fill in a small online application form and keep identity and address proof documents at hand. An IIFL Finance representative then calls and comes to the address to complete the process of instantly valuing the gold jewellery and taking it to store safely.
The loan amount is credited instantly into the borrower’s bank account. The process is hassle-free and 100% online.
The IIFL Finance representative also ensures that your gold jewellery is kept in secure vaults that are under constant surveillance. IIFL Finance also provides free insurance cover on the gold.
That’s not all. With IIFL Finance, a person availing a gold loan can easily track the loan amount, check and pay dues online, top up the loan, renew it online and benefit from other facilities.
This makes IIFL Finance the best digital gold loan provider in the market currently.
The biggest currency in the life of a busy consumer today is time. Some lenders have responded to the needs of the consumer by offering digital gold loans. But standalone gold loan companies and most banks expect consumers to still visit their branch.
IIFL Finance has taken the service right to the customer’s doorstep with a truly digital loan product. This makes it a hassle-free and fully digital process for the borrower.