Understanding how Millennials are using loans against their gold assets to their benefit

New Delhi [India], February 22 (ANI/NewsReach): An Old-World Charm of Gold in the New-Age World: The charm of gold never fades and this is reflected in the popularity that it sees in India. The fact that gold loans have been ubiquitous in the country for centuries comes as no surprise either. It is one of the oldest and safest forms of secured lending preferred by most borrowers and lenders. One of the major reasons for the success of gold loans in India is the high liquidity it offers along with easy documentation, quick disbursals, and convenient repayment options.
Generations of the yesteryears have always viewed gold as an investment that could save the day when they needed immediate funds, and to that end, gold always walks the talk. The value of gold has appreciated over the years which, in turn, has increased its market value. And today, people use their gold assets to get short-term loans to fulfill their immediate fund requirements.
Where Does Gold Loan Fit in Millennial Loan Culture? With approximately 34 per cent of the population being millennials, India is one of the largest millennial markets. The 'always online' generation is the most powerful consumer in today's era and their choices are closely monitored by businesses, including the lending market, to position their product offerings. Their drive towards achieving financial goals and aspirations has had a significant impact on the country's lending landscape- millennials are not holding back to fulfil their dreams and responsibility by taking available financial support. Being the generation that holds gold passed down from a previous generation, they see it as an asset that can meet their immediate financial needs.
Gold loan fits perfectly into the millennial loan culture, as this generation is educated and smart, and they understand how to benefit from such secured loans.
How are Millennials Benefitting from Gold Loans? Thorough understanding of how gold loans work has been a big factor that has sparked the demand for gold loans in the market. Millennials are making a smarter move by opting for gold loans which, by definition, are secured loans that can be obtained against gold as collateral.
Millennials are using the gold lying idle in their lockers to take gold loans and use it for diverse personal needs and not just exigencies. Here are the top reasons why millennials are taking out gold loans: -
Cost-Effective: The interest rate of a gold loan is usually lower than that of a personal loan, and the borrower also gets a host of benefits. By keeping gold as a mortgage, the borrower can save on locker rent, insurance costs, and so on. Many lending companies do not charge any penalty for pre-closing a gold loan. In certain cases, gold insurance is also provided by gold loan companies at no additional cost. Generation Y is smart enough to do their research and take a gold loan from a lending company that offers a wide variety of benefits on gold loans.
Convenient: The ease of loan disbursement is one of the primary reasons for the surge in demand for gold loans among millennials. Furthermore, doorstep gold loans are also available nowadays. For instance, Muthoot Finance offers a Gold Loan@ Home facility for availing gold loans from the comfort of your home. This involves a 3-step process that includes a request for a gold loan from the loan@home app, gold evaluation at home, and loan disbursal in the bank account.
Additional Benefits: Millennials are not only focusing on the loan amount but also on the additional benefits offered by the lender. A very low minimum loan amount with no maximum limit, simple documentation, 24*7 access to the loan account, and pre-and part-payment options are some of the benefits that increase the attractiveness of the gold loan
- Wide range of gold schemes
- Same-day release of gold
- 24*7 access to loan accounts
- Part release facility
- Free insurance for your gold
- Maximum valuation of gold
- 30-minute doorstep service
- Gold loan in a single visit
- Attractive Rate of Interest
- Online Repayment Facility
- Trusted Partner
- Pre & Part Payment Facility
- 5750+ Branches pan India.
When a person takes a gold loan, there is no limit to its end use. The amount disbursed can be used to cover any financial liability, such as paying for education, marriage, closing another loan, or paying medical bills. With great responsibility comes great challenges, and with Muthoot Finance gold loans, those challenges can be conquered.
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