Kotak Mahindra Bank Launches Smart Choice Gold Loan

Kotak Mahindra Bank, one of the leading private sector banks in India, has launched a new gold loan product called Smart Choice Gold Loan, which offers a smarter solution for aspirational customers who want to unlock the value of their gold jewellery to meet their credit needs .

Why choose gold loan?

According to a World Gold Council report, Indian households have 27,000 tonnes of gold. Further, CIBIL data from Dec ‘23 shows gold loan industry advances at Rs 7.15 lakh crore, which has grown at CAGR of 19% for the last 3 years. Soaring gold prices and easier availability of gold loan from banks and NBFCs have led to a growing number of consumers opting for gold loan as a cost-effective option compared to conventional credit products.

What is Kotak Smart Choice Gold Loan?

Kotak Smart Choice Gold Loan was developed based on consumer research conducted by the bank, which highlighted 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 and disbursal process. By utilising gold as a collateral, borrowers can enjoy lower interest rates compared to conventional credit, translating to savings during the course of the loan tenure.

What are the features and benefits of Kotak Smart Choice Gold Loan?

The key features of Kotak Smart Choice Gold Loan include :

• Fixed monthly interest rate as low as 0.88%
• NIL processing fee*
• Same-day disbursal**
• Flexible repayment options
• Minimal documentation
• Loan amount up to INR 25 lacs with no income documents#

What do the experts say about Kotak Smart Choice Gold Loan?

Shripad Jadhav, President – Retail Agriculture and Gold Loans, Kotak Mahindra Bank said, “Gold loans are a versatile financial product and cater to a wide range of consumer needs. Easy accessibility, same day processing, attractive pricing, and the security of gold jewellery contribute to its appeal among aspirational consumers. As a result, 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.”

Rohit Bhasin, President, Head – Retail Liabilities Product and Chief Marketing Officer, Kotak Mahindra Bank, said, “Consumers today are aspirational in their outlook and value-conscious in their approach towards credit. As a smart & safe option, gold loans perfectly match the needs of consumers looking to finance their aspirations. Our advertising campaign aims to communicate these very benefits alongside the value and utility of gold loans to the savvy consumer, highlighting the pricing, convenience and safety of Kotak ‘Smart Choice’ Gold loans across various use cases.”

How to apply for Kotak Smart Choice Gold Loan?

To avail Kotak Smart Choice Gold Loan, customers can visit any of the bank’s branches that offer this service. The offer is valid till 31st May 2024. For more details, visit www.kotak.com.

*0.88% fixed interest rate per month on loan amount of Rs. 4 lakh and above with tenure of 12 months. #Income Documents will be required on loan amount of Rs. 25 lakh and above. Foreclosure charges applicable. Offer is valid till 31 st May 2024. Loan to Value ratio as prescribed by RBI from time to time. Credit at the sole discretion of the Bank and subject to guidelines issued by RBI from time to time. Bank may engage the services of marketing agents for the purpose of sourcing loan assets. Available in select locations only. For location details visit www.kotak.com.

**Subject to submission of required documents.

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