Choosing a lender that has an efficient loan management system should be one of the top priorities when availing of a gold loan. After all, the experience of a borrower depends directly upon its robustness and efficiency.
To ensure a hassle-free experience in relation to the application procedure and the repayment process, you must check whether a loan management system offers certain features.
How do I Choose a Gold Loan Management System?
The top loan management features you should look out for when choosing a lender to ensure hassle-free loan transfer and disbursal are as follow:
- Accurate Information
- Fast Loan Disbursal
- Mobile-friendly Ecosystem and Transparency
- Loan Rescheduling Functionality
- Personalized Experience
- Protection Against Fraud
Read on to know about these features in detail.
- Accurate Information
When money and personal information are involved, proper organization is crucial. That’s why Individuals must ensure that the lender’s loan management system has a centralized customer database. This facilitates a 360-degree view of a borrower’s profile for the entire loan department.
By adopting a centralized approach to database management, any loan official can extract customer details like contact information, repayment history, CIBIL score, KYC information, among others, as and when required.
So, customers need not worry about any discrepancy in financial records or personal information. They only need to sign in to their online accounts to make repayments on time.
- Fast Loan Disbursal
When availing gold loan, it is imperative for borrowers to choose a loan provider that ensures minimal turnaround time. This will ensure that they get access to funds quickly to meet any urgent financial requirement that may arise. But to ensure fast disbursal of a gold-backed loan, a lender’s loan management system has to automate the entire loan life cycle.
This would maximize operational and managerial efficiency in the following ways:
- Streamlines workflow at the loan provider’s end by easing time-consuming and repetitive tasks like profile analysis, gold evaluation, etc.
- Reduces turnaround time.
- Eliminates human errors.
As a customer, you can get access to an online gold loan calculator owing to the benefits of automation. This tool lets you estimate the amount of loan available against your jewelry. Accordingly, you can plan and align your financial requirements.
- Mobile-friendly Ecosystem and Transparency
The back end of an efficient gold loan management software comprises advanced integrations. However, it should provide an intuitive, lucid user experience so that the lending and repayment processes are convenient for all users.
Individuals must make sure that a lender’s loan management system includes a mobile-based application to simplify the lending process. Also, the app must provide details in relation to the loan to ensure maximum transparency. This feature enables borrowers to log in to their profiles via their apps and check the progress of the loan.
- Loan Rescheduling Functionality
A gold loan management system with an integrated accounting management feature makes loan rescheduling hassle-free for individuals. It updates the calculation related to the loan amount after a customer puts in a rescheduling request. This also applies to part-payment and pre-payment of a loan against gold.
Thus, Borrowers must make sure that the gold loan management system ensures that loan rescheduling options, including these two, are error-free:
- Loan extension: It lets borrowers request their lenders to extend the repayment tenure. For instance, let’s assume you have taken a loan against gold for 6 months but need some more time to repay the amount. In this case, you can approach your lender to extend the tenure by a few months.
- Loan renewal: A loan renewal, on the other hand, lets individuals avail a fresh gold-backed loan by re-pledging the same gold items against which they have just completed a recent loan.
- Personalized Experience
When it comes to availing of financial services, there’s no readymade solution as borrowers may have specific requirements. A gold loan management system should be able to adjust itself to meet those needs.
As a borrower, one would want to be a beneficiary of certain features that would provide them with maximum convenience. For example, a customer may want to get important reminders regarding payment dates.
- Protection Against Fraud
With digitization accelerating in India, online frauds are on the rise. As per data published by TransUnion, suspected digital fraud against financial services companies has increased by 89%. Thus, borrowers must opt for a gold loan provider that relies on automation and smart intelligence.
An automated process secures the entire lending cycle by eliminating inaccuracies and frauds. Moreover, an analysis that is backed by artificial intelligence enables the loan provider to identify and eradicate threats that may materialize.
How Does an Effective Gold Loan Management System Minimize Discrepancies?
In case a gold-backed loan provider is not able to eliminate discrepancies concerning the regulations and changes in the market price, it directly impacts borrowers.
Thus, it is essential that a lender installs a robust goal loan system that can minimize the following discrepancies:
- Meeting Administrative and Regulatory Controls
There have been various changes in RBI mandates regarding gold loan valuation over the years. A sudden reduction in LTV rates demands efficient cost management from the lender’s side. Therefore, a robust loan operating system becomes a priority for financial institutions under such circumstances.
- Keeping Track of Fluctuating Gold Prices
Just like the LTV ratio, gold prices also keep changing frequently worldwide. Therefore, the quantity of gold loans under management leads to more profitability than the volume per loan. At the same time, a greater number of loans demand more documentation and processing, resulting in high operating costs. This can only be sustained with efficient centralized database management to cut unnecessary costs.
- Varying Requirements
Leading gold financing institutions offer a number of schemes for customer convenience. While some make one-time repayment, others opt for monthly installments. At the same time, there are different interest rates and part-payment facilities.
Loan providers need to chalk out the repayment amount separately for each case. An efficient software facilitating auto-calculation can streamline this tedious process and curb discrepancies.
Rupeek's customized gold loan management system helps solve these challenges by streamlining the entire loan cycle. The RBI-certified NBFC allows customers to be a beneficiary of efficient features via its best offers.
How Do Rupeek Assure Customers of the Best Gold Loan Management System?
Here are some of the most beneficial offerings of India’s leading gold loan-lending platform that ensure an effective loan management system.
- Online application:
Rupeek facilitates a hassle-free online application procedure. Interested individuals can simply place a loan request via the Rupeek app or website. Thereafter, a loan representative will visit them at their provided address to complete loan verification and gold appraisal.
Upon approval, customers can get the loan amount transferred to their bank account instantly under the loan manager’s surveillance.
Rupeek maintains a comprehensive database comprising customer information collected during a loan application.
- Automated planning:
Potential borrowers can use Rupeek’s online gold loan calculator to get an estimate of the available loan amount against their collaterals. Here, they can adjust the inputs for their required loan amount, suitable tenure, and interest rate to meet the gold requirement. This calculator also gives an accurate estimate of the monthly and total interest payable to help individuals plan their repayments accordingly. Thus, this online tool facilitates better financial management.
- Tracking the pledged gold:
With Rupeek’s high-security collateral maintenance, customers need not worry about the safety of their gold jewelry.
Pledged gold items are transported to and from the customer’s residence in GPS-secured bags. They are then stored in partner banks’ vaults within a 5 km radius of the customer’s residence, where they undergo surveillance 24x7.
We also offer 100% coverage against any damage or theft of collaterals.
- Highest per gram rate:
According to the latest RBI directive, the loan-to-value (LTV) ratio for gold-backed loans for non-agricultural purposes can range from 75% to 90%.
Rupeek adheres to this guideline and offers up to 90% of the collaterals’ value as a gold-backed loan.
- Gold loan extension and renewal:
Borrowers can generally avail repayment tenure of 6 months against a gold-backed loan. However, Rupeek also allows customers to extend the tenure by 6 months to a maximum of 12 months.
Customers can also opt for loan renewal by re-pledging gold items. Contrary to loan extension, a renewal will let you avail of a completely new loan against separate terms and conditions, like gold loan rate and repayment schedule.
- Various loan schemes: Customers can choose from different interest rates, starting from 0.49% per month. Rupeek also offers flexible repayment options, including traditional EMIs and paying as per a borrower’s convenience.
- Gold loan overdraft: Existing customers can opt for the Rupeek Quick facility to avail of an extended line of credit by pledging additional gold jewelry. Individuals can get access to funds instantly as and when required.
Also, they have to pay interest only on the borrowed amount. An additional advantage of this overdraft facility is that borrowers need not submit any additional documents since they are availing this credit on top of an existing gold-backed loan.
Since Rupeek conducts all its operations online, customers can be assured of a highly efficient management system. With organized gold loan providing services, we have made affordable borrowing solutions easily available to various individuals across India.
If you are looking for similar financial solutions, avail of a loan against gold from us at the earliest!
