Kotak Mahindra Bank has announced the launch of Smart Choice Gold Loan meant for aspirational customers. The private lender — in a statement — said the loan offers five key features and would turn out to be a compelling alternative to conventional credit options.
These key features are: 1) fixed monthly interest rate as low as 0.88 percent, i.e., 10.56 percent per annum 2) zero processing fee, 3) same day disbursement, 4) flexible repayment options and 5) minimal documentation.
Shripad Jadhav, President, Retail Agriculture and Gold Loans, Kotak Mahindra Bank, asserted that gold loans are a versatile financial product and cater to a wide range of consumer needs.
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Jadhav said easy accessibility, same day processing, attractive pricing, and the security of gold jewellery contribute to its appeal among aspirational consumers.
“An increasing number of individuals are considering gold loans as a cost-effective option comparable to other credit products, indicating a shifting trend in consumer financial behaviour. Kotak ‘Smart Choice’ Gold loans can serve as an easy and reliable financial tool to bridge the gap between aspirations and reality,” he said.
Why gold loan?
The bank rolled out Smart Choice Gold Loan on the basis of consumer research. Besides, the bank noted that Indian households have 27,000 tonnes of gold, according to World Gold Council report.
Further, gold loan industry has grown at an annualised rate of 19 percent for the last three years.
Soaring gold prices and easier availability of gold loan from banks and NBFCs have led to a growing number of consumers unlocking the value of their gold jewellery to meet their credit needs.
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The bank’s research also showed the need for a product that offers consumers the maximum value and flexibility to meet their credit needs. Unlike other credit products which have stringent eligibility criteria, gold loan has a simpler application & disbursal process.
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Published: 01 Mar 2024, 08:02 PM IST