Following this announcement, the partnership will allow Google to give its customers and clients across the region of India the possibility to access secured loans. The deal also aims to broaden credit accessibility in a market where traditional lending often falls short.
Despite the process made by financial inclusion initiatives, access to credit still remains a challenge for multiple Indian users who lack profiles with local credit bureaus. In addition, both financial institutions will continue to focus on meeting the needs, preferences, and demands of clients and users, while prioritising the process of remaining compliant with the regulatory requirements and laws of the local industry as well.
As gold holds a big significance in India, a sizeable portion of this demand comes from lower-income households, as many Indians already own gold and can secure credit at lower interest rates. Throughout this partnership, Muthoot Finance will be undertaking the task of handling, storing, and securing the gold from clients, as well as extending the credit, while Google will connect the prospect users to the lender.
In addition, a gold-backed solution will represent a crucial step in the process of expanding credit accessibility in the region of India. Google’s initiative will tap into the cultural and economic importance of gold, which will potentially open new avenues for multiple individuals in the country to access formal credit.
At the same time, customers will still have the option to take collateralised loans, as the company has seen that some users chose collateralised loans because of the lower interest rates and their familiarity with it, even if they have already started to build a credit history.
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