Utilizing Instant Personal Loans to Purchase Digital Gold in India: A Guide

From financial advisors to our elders, almost everyone seems to be of the opinion that you should invest a certain part of your money into gold. Over the last couple of years, buying digital gold has gained significant prominence. Digital gold has made it possible to buy and sell yellow metal online and has freed us from the hassle of handling physical gold and ensuring its safety.

In this blog, we will discuss everything you should know about digital gold investments and how you can borrow money via an instant personal loan to buy it.

Growth and Popularity of Digital Gold Investments

The sales of digital gold products have been consistently growing year after year. The digital revolution has transformed the gold market. Digital payments and financial services company Paytm said that they facilitated sales of approximately $18.4 million in the first six months of offering digital gold from their platform. In India, more than 15 companies are offering digital gold products.

A lot of people have shifted from investing in physical gold to digital gold for many reasons. If they buy digital gold from a reputable place online, they don’t have to worry about risks like theft and impurities. The exponential increase in smartphone penetration and internet consumption has helped boost the growth of digital gold investments. There are also many types of digital gold products which give you more convenience and flexibility with regards to gold investments. Let’s explore them –

Also Read: Different Types of Personal Loans in India

Different Forms of Digital Gold

Before taking a personal loan to buy gold, you should decide the type of digital gold based on factors like your goals, amount and risk tolerance. Here are four ways you could buy digital gold in India –

Gold ETFs –

If you want to buy or sell gold like a stock, you can invest in gold via ETF. The full form of the ETF is Exchange-traded funds. It is less costly and more convenient than buying physical gold. You need a Demat account to buy gold ETFs.

Gold Mutual Funds –

Buying a gold mutual fund is a safe and convenient way to add gold to your portfolio. These funds invest the money in physical gold, gold mining companies, gold futures and options, gold ETFs and gold-related securities. You can buy a gold mutual fund in a lump sum or in systematic investment plans (SIPs).

Digital Gold –

Investing in digital gold is like buying physical gold minus all the hassles. The gold you buy will be stored by the company in a secure vault. It saves your locker charges and you don’t have to worry about securing it. Certain companies allow you to buy gold for as low as one rupee. You can even use this digital gold as collateral to get a loan from a bank or an NBFC.

Gold-Backed Tokens –

Gold-backed tokens are a type of digital asset or cryptocurrency which is backed by physical gold. The price of these tokens is the same as the price of physical gold. Unlike most of the cryptocurrencies, these tokens’ value is backed by a tangible asset. This makes it a safer investment and saves the token from dramatic fluctuations.

Features and Benefits of Digital Gold Investments

Loan Against Digital Gold

There are many lenders who accept digital gold as collateral. Pledging an asset reduces the chances of loan rejection. Even individuals with low credit scores can get a loan against gold. You can even avail gold loans online without any physical paperwork.

Safe And Secure

One of the biggest advantages of buying digital gold is that you don’t have to worry about keeping it safe. The company offering this service stores your gold in secure vaults.

Transparent

The entire process of buying and storing digital gold is transparent and easily accessible. You can know all the aspects of gold like current market value and purity from the dashboard, check the charges levied by the platform and track real-time changes in the price of gold.

Quality Assurance

If you check the feedback of existing customers and buy digital gold from reputed lenders, you would most likely get the gold that meets international standards in terms of purity of gold.

Storage

Buying digital gold eliminates the need for physical storage. The responsibility of keeping the physical metal safe lies with the company selling digital gold.

Buy Loan Online

Unlike physical gold, you don’t have to visit a store to buy digital gold. It saves you from the stress of ensuring the quality of gold and carrying it safely back home.

How Zype Instant Personal Loans Can Help You to Buy Digital Gold Online

If you need a fast and easy personal loan to buy gold in India, download the Zype app now and enjoy these benefits –

Get Instant Loan Approval and Fast Disbursal

Enter your basic details on the Zype app and get loan approval under 60 seconds. Also, the money will be credited to your account in less than 24 hours once you apply for the loan.

Affordable Interest Rates

The interest rate at Zype starts at 1.5% per month. This ensures that buying gold does not become an expensive affair.

Payback in Convenient EMIs

Choose from 3, 6, 9 and 12 months of repayment tenures on Zype as per your budget and pay with ease.

Get Loans Up to INR 5,00,000

You can borrow from ₹1000 to ₹500000 from your Zype credit line. This ensures you don’t fall short on funds while buying digital gold.

How to Avail a Personal Loan to Buy Digital Gold From the Zype App

1. Once you have checked the eligibility criteria, download the Zype app from the Play Store or App Store.

Read More: Personal Loan Eligibility

2. Enter Your Basic Details – name, PAN, employment details and mobile number. This will generate your loan offer.

3. Accept your loan offer and complete the KYC process by entering your Aadhaar number and taking an online selfie.

4. Select the loan amount you need to buy digital gold and a repayment tenure that fits your budget. The money will be transferred to your account.

Benefits of Investing in Gold

Liquid Asset

Gold is one of the most liquid assets you can have in your portfolio. You can turn it into cash in no time. If you want digital gold, you can buy it online without stepping out of your home.

Gold Makes Your Investment Inflation-Proof

Investing in gold serves as a good hedge against inflation. Unlike currencies, the value of gold doesn’t decrease as the cost of goods and services goes up.

Gold Appreciates in the Long Term

Due to limited supply and intrinsic value, the value of gold tends to rise upward in the long run. In fact, even in times of economic turmoil, the demand for gold usually rises as it is considered safer than other investments.

Accepted Worldwide

Due to its historical and cultural significance, gold is considered as a valuable asset all around the globe. One can easily buy and sell it in international markets.

Start with as Little as You Want

You don’t need to have a lot of money to start investing in gold. You can also invest small amounts regularly by starting a SIP (Systematic Investment Plan) of a gold mutual fund.

Conclusion:

Thanks to all the products of digital gold, it has never been easier and transparent to invest in yellow metal. You can not only buy gold from anywhere & anytime but also without the stress of keeping it secure.

If you need money instantly to buy digital gold, download the Zype app and get personal loans up to ₹5,00,000 in no time. You can complete the loan application process in less than 5 minutes and get the desired sum in your account in less than a day. Use the money to buy digital gold and build a strong financial future.

Frequently Asked Question

Is Digital Gold A Good Investment?

Yes, there are many benefits of investing in digital gold. It is fast and convenient to buy digital gold. Also, it is considered safer than other investments like buying stocks or real estate.

Is Digital Gold Better Than Gold?

Digital gold is a better option if you are buying gold for investment purposes. It’s safer and more transparent than buying physical gold. You also save many costs by buying digital gold like storage and travel expenses.

Can I Take Out A Loan Against Digital Gold?

Yes, many Banks and NBFCs offer loans against digital gold. You can read the eligibility criteria and loan terms of reputed lenders on their website and choose the one that benefits you the most.

Is Selling Digital Gold Taxable In India?

Yes, selling digital gold is taxable in India. The amount of tax depends on many factors like tax slab, duration of holding, indexation benefit, etc.

How Much Quantity Of Personal Gold Is Allowed In India?

As long as you can show the source of income used to buy the gold, you are allowed to hold the gold of any amount.

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