This Dhanteras, Jio Financial Services is shaking up the gold investment game with the launch of SmartGold through the Jio Finance app! You can now invest in 24K gold starting at just Rs. 10—a revolutionary step that is set to redefine how we view gold purchases.
This exciting new platform promises to make gold investment accessible, secure, and completely hassle-free. Here’s everything you need to know about this groundbreaking opportunity!
Key Features of SmartGold by JIO Finance
- Start Your 24K Gold Investment with Just Rs. 10!
- Secure Storage in Bank-Grade Lockers—Absolutely NO Additional Cost!
- Redeem Anytime—Cash or Physical Gold!
- Enjoy Convenient Doorstep Delivery!
What is the Eligibility Criteria for Investing in JIO Finance Smart Gold?
- Must be a Indian Resident
- Must hold a valid PAN Card/ Form 60/ Aadhar Card
- Must have a bank account in your name
- Must be above 18 years old
Who Stores Digital Gold?
A trusted custodian securely stores your digital gold in a facility designed for maximum safety. The custodian groups your gold with others, ensuring better protection and efficient management.
What Happens When You Sell Your Gold Investment on JIO Finance?
| Step | Details |
|---|---|
| Selling Price Quotation | The website provides a selling price quote for your gold. |
| Choose Sale Amount | Sell any amount starting from Rs. 10. |
| Funds Transfer | Sale amount transferred to your registered bank account within 4 days. |
| Transaction Fees | A small application transaction fee will apply. |
| PAN Card Requirement | Required for sales exceeding Rs. 500. |
| Request Physical Gold | Request physical gold starting from 0.5 gm and its multiples if preferred. |
| Making Charges | Different making charges based on weight and design for each gold coin. |
| Delivery Across India | Delivered to your address by a logistics provider, with dispatch confirmation and tracking details. |
The Rising Appeal of Loan Against Gold
As economic uncertainties loom and traditional financial avenues face challenges, gold loans offer a compelling alternative that aligns with modern financial needs.
The primary allure of gold loans is their rapid accessibility. Borrowers can secure funds quickly—often within hours—through a straightforward application process that requires minimal documentation.
Gold loans are also secured, backed by the value of the gold pledged as collateral. This reduces risk for lenders and results in lower interest rates compared to unsecured loans. Borrowers can access up to 80-90% of the gold’s market value, reflecting their asset’s worth.
Gold’s historical value as a hedge against inflation further enhances its appeal. In uncertain economic times, gold often appreciates, making it a reliable form of collateral.
Additionally, the gold loan market has expanded, offering options from established financial institutions to local jewellers. However, borrowers should prioritize reputable lenders that provide transparency and competitive rates.
A Surge in Demand: Gold Loans on the Rise
Recent data underscores a robust expansion in the gold loan sector. In FY’23, searches for gold loans in India surged by 11.64%, climbing from 9.55 lakh to 10.66 lakh. This uptick is mirrored in the disbursement of gold loans, which saw a year-on-year growth of 16.2% as of January 2023.
Such parallel increases in interest and lending volumes indicate a deepening trust in gold as a secure collateral and a preferred financial instrument among Indian consumers.
(Source of Information: Mint)
Competitive Edge: Banks Outshining NBFCs
A pivotal driver behind this growth is the competitive interest rates offered by banks. Unlike non-banking financial companies (NBFCs), banks have stepped up their game by providing more attractive rates, thereby enticing a larger customer base.
Bajaj Finserv’s valuation of the Indian gold loan market at approximately USD 55.52 billion in 2022, with projections soaring to USD 124.45 billion by 2029 at a CAGR of 12.22%, highlights the sector’s lucrative trajectory.
(Source of Information: Mint)
Conclusion
The Indian gold investment and loan landscape is experiencing significant evolution, highlighted by innovative platforms like Jio Financial Services’ SmartGold. By offering accessible digital gold investment starting at just Rs. 10, SmartGold is democratizing gold ownership and making it more inclusive.
The gold loan sector thrives as consumers place greater trust in these services and banks offer competitive rates. With digital solutions and traditional financial services expanding, the market is set for sustained growth.
JIO Finance in News
The Reserve Bank of India (RBI) has authorized Jio Payments Solutions Limited (JPSL), a wholly owned subsidiary of Jio Financial Services, to operate as an Online Payment Aggregator under Section 7 of the Payment and Settlement Systems Act, 2007, effective October 28, 2024.
Frequently Asked Questions
Jio Financial Services (JFSL) has not announced any bonus shares. However, as part of the demerger, Reliance granted one JFSL share to each shareholder for every Reliance share they held.
JFSL’s share price experienced some volatility, influenced by multiple factors, including initial market positioning and investors adjusting their portfolios after the demerger. Additionally, financial stocks may react to market expectations regarding interest rate fluctuations and regulatory pressures on non-banking financial companies (NBFCs), impacting JFSL’s valuation temporarily.
As of now, specific interest rates for JFSL’s home loan offerings haven’t been publicly detailed. However, according to JIO Finance application, it is 8.5% p.a.
Jio Financial plans to offer various home loan products tailored for diverse segments, including traditional home purchase loans, home construction loans, and balance transfer options. This approach enables JFSL to cater to a broad customer base through its comprehensive loan offerings.
Since its listing, JFSL’s share performance has shown mixed results, undergoing initial fluctuations and adjustments. The stock aligns with market conditions and has settled after this initial period of volatility.
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