Date:29/11/2023

Gold loans have been a popular way to raise money in India for centuries. They are secured loans, meaning that the borrower pledges their gold as collateral. This makes them a relatively safe option for lenders, and they can be obtained quickly and easily.

Gen Z, the generation born between 1997 and 2012, is now coming of age. They are the most educated and tech-savvy generation yet, and they have a different perspective on gold loans than previous generations.

Here are the top 5 myths about gold loans that Gen Z is debunking:

Myth 1: Gold loans are only for old people.

Gen Z is challenging the stereotype that gold loans are only for old people. They see gold loans as a viable option for anyone who needs to raise money quickly and easily.

Myth 2: Gold loans are expensive.

Gen Z is aware that gold loans can be expensive, but they also know that there are ways to get a good deal. They are more likely to compare rates from different lenders and negotiate for better terms.

Myth 3: Gold loans are risky.

Gen Z understands that gold loans are secured loans, meaning that the lender can take their gold if they default on the loan. However, they also know that gold loans are a relatively safe option, as the value of gold is unlikely to drop significantly.

Myth 4: Gold loans are only for people who don’t have access to other forms of credit.

Gen Z is more likely to see gold loans as a financial tool that can be used for a variety of purposes. They may use a gold loan to start a business, invest in education, or consolidate debt.

Myth 5: Gold loans are a sign of financial hardship.

Gen Z is not ashamed to take out a gold loan. They see it as a smart financial decision that can help them achieve their financial goals.

Gen Z borrowers are using gold loans to:

Fund their education: Gold loans can be used to pay for tuition fees, living expenses, and other education-related costs.

Start a business: Gold loans can be used to finance the startup costs of a new business, such as equipment, inventory, and marketing.

Cover unexpected expenses: Gold loans can be used to cover unexpected expenses, such as medical bills, home repairs, or car repairs.

Invest in themselves: Gold loans can be used to invest in skills training, career development, or other personal growth initiatives.

Tips for Gen Z borrowers who are considering a gold loan:

Compare rates and terms from different lenders before you choose a loan.

Read the loan agreement carefully before signing it.

Make sure you can afford the monthly repayments.

Keep your gold safe and insured.

Conclusion

Gold loans are a versatile and affordable financial tool that can be used for a variety of purposes. Gen Z borrowers are increasingly using gold loans to finance their goals and ambitions. If you are considering a gold loan, be sure to compare rates and terms from different lenders and read the loan agreement carefully before signing it.