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Rajesh Prajapati
Neeraj Prajapati
Ankit Vishwakarma
Keywords:
Gold loans, equal payments every month, loans, electronic gold, gold based finance products, systematic investment plans, block chain, artificial intelligence, risk assessment, credit assessment, strategic partners, ethical sourcing, sustainability, financial inclusiveness and market innovation.
Abstract:
The goal of this research paper is to explore the feasibility, potential impact and challenges of introducing EMI and loan options for gold purchases in the Indian market. The prominent place that gold occupies in the culture of India makes it an important symbol of wealth and safety. However, the high up-front price of buying gold often prevents most people from being able to afford it despite its cultural or intrinsic value.
In this study, we investigate how offering phased payment options such as EMIs and loans could democratize ownership of gold by making it more affordable financially. By allowing consumers pay monthly installments over a set period instead of making an upfront payment which can be costly; high initial costs barrier could be greatly lowered thereby encouraging more spending on gold thereby leading to economic growth while positively contributing to general market trends.
Nevertheless, the introduction of gold-backed financing options also poses numerous challenges. Price volatility in gold is a key concern, as fluctuations in gold prices could impact the values of loans as well as the overall financial stability of lending institutions. Furthermore, if consumers fail to meet their installment obligations there is a possibility of credit default which could lead to reduced profitability and poor financial health for lenders.
This paper further investigates on the regulatory environment surrounding such financial products. It looks into existing regulations and possible modifications necessary to facilitate the introduction of gold-backed loans and EMIs. A thorough analysis on how to create a sustainable such as financial insecurity brought about by variations on prices of gold or not being able to pay back loans (defaults). It is essential that a good financing model incorporates these risks. Therefore, an updated regulatory framework shall be required so that this objective may be achieved.
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International Journal of Recent Research and Review
ISSN: 2277-8322
Vol. XVII, Issue 2
June 2024
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PUBLISHED
June 2024
ISSUE
Vol. XVII, Issue 2
SECTION
Articles
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