Taking a mortgage at beneficial phrases and circumstances is just not a straightforward job. To get an unsecured mortgage at a decrease fee, a borrower must have a clear document and good credit score rating.
Another option to cut back the mortgage fee is taking mortgage in opposition to collateral. However, assessing the worth of collateral can be a troublesome job.
The ease of securing loans additionally differs from financial institution to NBFCs (non banking monetary corporations) to fintech gamers.
“It’s 2022. Everything from groceries to food, consumer durables to blood tests is home-delivered today. In that sense, isn’t going to a physical branch to get a loan becoming archaic?” asks Nitin Misra, Co-founder, indiagold.
Commenting on the grueling job of getting a mortgage sanctioned, Misra mentioned, “While borrowing from banks/NBFCs, the customer first removes all the gold from their almirah, since they’re unsure of the exact quantity they need for a loan. Typically, most customers don’t borrow against all their gold in one go. Once they locate their nearest bank branch, there is always the risk of carrying unsecured collateral. At times, customers avoid walking into a nearby branch – instead travelling to a distant one to avoid being seen or followed.”
“Once the gold is handed over, branch officials assay and assess the principal and interest rate. If the valuation falls short or if the customer does not accept the offer, they must take their gold and again travel to another bank branch. Due to the inconvenience and privacy issues, they end up accepting the unfair offer in most cases. Subsequently, they share their bank account details and the money is transferred to their account,” he added.
Apart from the troublesome processes, there are additionally some prices concerned within the loan-sanction course of.
“Now, depending on the lender, customers may also have to shell out processing charges. There is no facility to keep their gold in the lender’s locker without taking a loan (useful for businessmen). Hence, each time they need a loan, this cumbersome process is repeated. Needless to say, they have to visit the branch again to close the loan,” mentioned Misra.
“On the other hand, borrowing from a FinTech means doorstep convenience, security and privacy. Customers also get the option to choose from multiple lenders in terms of schemes, i.e. differential rate of interest and loan amount. Additionally, loan documents and loan-related processes can be performed on smartphones without the need of visiting a branch. In a nutshell, FinTechs make products more affordable, convenient, usable, accessible and transparent – thereby thoroughly enhancing the consumer experience,” he added.
Source: www.financialexpress.com”