Indian families have been collecting gold for many years to keep as a backup during tough situations. However, gold has become more valuable and can now be used for more than just emergencies. People are now using their gold to fund things like dream weddings, vacations, or higher education.
Gold holds great significance in Indian households, often bought or given as gifts during special occasions like festivals and weddings. However, owning physical gold does not generate any interest income when kept at home or in a bank locker. Now, individuals and families have the opportunity to utilise their gold to meet their immediate needs or fulfil their long-awaited dreams.
With gold markets becoming easily accessible, gold loans have become an appealing option for young millennials to obtain funds for their short-term needs. Millennials are now emerging as a vibrant group of borrowers who are keen to leverage their untapped gold assets.
What makes gold loans an attractive option for millennials?
Gold loans are a type of secured loan where borrowers pledge their gold as collateral to a bank or NBFC. The financial institution temporarily holds the gold jewellery and grants a loan to the owner. Once the borrowed funds are repaid, the jewellery is returned to the borrower.
Unlike previous generations who preferred to keep their gold at home or in a bank locker as a safe savings approach, millennials are more interested in utilising their dormant assets to benefit from them.
More affordable than unsecured loans
Gold loans have advantages over other types of loans, such as credit card debt and personal loans, especially for millennials. They can make use of their idle gold assets by opting for a gold loan. In some cases, a gold loan may be more beneficial than a small business loan, serving as valuable seed capital for young entrepreneurs.
Easy approval
For millennials with limited or no credit history, gold loans offer an easier pathway to obtain credit. Being a secured form of borrowing, all they need is proper identification documents like a PAN card or an Aadhaar card. This makes the approval process hassle-free and accessible for them.
Online application
Given the tech-savvy nature of millennials, who prefer online banking, gold loans have adapted to their preferences. Banks and NBFCs can now quickly complete the e-KYC process and approve a gold loan, provided all necessary requirements are met. The loan amount can be disbursed and credited directly to the borrower's bank account, with the added convenience of online repayments.
Gold loans are becoming the fastest-growing loan option, especially for millennials. They are popular because they provide easy access to short-term loans with attractive terms. With minimal documentation requirements, low gold loan interest rates and quick processing times, gold loans are the most attractive choice for young borrowers in need of personal credit.
If you are looking for quick funds, consider the online gold loan offered by Bajaj Finserv. You can visit the Bajaj Finserv website to fill out an online loan application and receive quick approval for your gold loan.
