Gold has been one of the most preferred metals in Indian households for many years. Durability, non-corrosiveness, and limited supply are some of the physical properties of gold that make it a significant store of value. The gold asset has proven its might in crises and earned positive returns even when other asset classes have weakened.

Millennials, also known as Generation Y, are reshaping how banks and NBFCs offer gold loans. This mobile-native and tech-savvy demographic is driving enormous change in financial institutions, ranging from consumer behavior to technology adoption. When it comes to loans against gold, it is one of the oldest and safest forms of secured loans preferred by most borrowers and lenders, and millennials are no different.

For millennials, money management during a crisis can be made easy by realizing the benefits of a gold loan. This cohort constitutes a sizable chunk of India’s workforce, nearly 34% of India’s population. The current mix of millennials and Generation Z are putting gold loans to good use by leveraging and utilizing their worth in the best possible way. From establishing a startup and traveling to dream destinations to buying a new gadget, a gold loan can serve all the purposes millennials look for.

With easy documentation, quick disbursals, convenient repayment options, zero credit history, and hassle-free documentation, millennials are now more than ever opting for gold loans for urgent financial exigencies. Here are some of the top factors gold loan companies in India have made millennials realize their value:

A Smarter Move

Nowadays, millennials seek gold loans from NBFCs and banks, as it is one of the smartest ways to fulfill short-term financial needs. Instead of keeping their gold assets in lockers, they wish to put them to work and make an extremely convenient choice. A loan against gold saves them from paying heavy interest charges while also helping them maintain a good credit score. As most banks and NBFC consumers belong to the “always online” group, the rapid digitization of their services has made gold loans more accessible and enticing for millennials. The younger generation is now more ready than ever to utilize their gold assets and put them to good use by funding their personal, medical, and business needs.

Cost-Efficient

Millennials belong to a group that wants low barriers to entry, meaning they want the product to be easy to sign up for and, where possible, cost-effective. The interest rate for getting a loan against a gold asset is comparatively much lower than other types of loans. In addition to this, the borrower also gets a host of other benefits, such as zero locker room charges, insurance costs, etc. Many lending NBFCs accept repayment options in the form of repayment at regular intervals, upfront interest payments, and bullet repayments.

Convenience

Having been the first generation to grow up with the internet, millennials, through their innovative minds, have boosted the startup culture. This is where the price of gold assets through gold loans proves more than accessible to the millennial generation. The gold loan’s online presence and its quick loan disbursement are some of the features that may explain the surge in its demand among millennials. Furthermore, some NBFCs accept gold loan repayments with just a click.

Capri Loans is one of the NBFC gold loan companies in India that offers schemes according to the consumer’s requirements and affordability. The NBFC has high-tech instruments and trained staff that ensure proper valuation of the pledged loan. The borrower can get up to 75% of the total collateral amount of the pledged gold. The pledged gold is kept in safety vaults placed in specialized rooms under CCTV surveillance around the clock to ensure safety.

Conclusion

To conclude, the endless benefits of loans against gold fit perfectly into the millennial loan culture, as this generation is always on the lookout for smarter ways of borrowing sums. Whether needing immediate funds or wanting to start a new venture, gold loans always walk the talk.

How Millennials Look at Using Gold

How Millennials Look at Using Gold