Double Gold


Double Gold – Nija World

Current Gold loan model:

Gold loan is the fastest growing major loan segment in India and also one of the leastregulated segment in the lending space in India.

For Customers, the Gold loan means faster access to capital,/ liquidity with least amount of KYC and even remotely. Considering the access to Capital situation in India, this is a far better and quicker alternative than most of the informal money lenders and Pawn brokers across the country.

Considering that the payers are registered NBFC’s and Banks, the customers find this far more secure and safe for their family heirloom, since Gold has for most has been an asset and not necessarily an instrument of investment.
For Lenders, the Gold loan has been an excellent scheme that not only gives access to great returns but in the most secured way as possible. There has been unprecedented growth for NBFC’s into Gold loan and they all are expanding in a fast pace. While, Banks are making the most of it and are clearly enjoying the fastest growth across all lending products.

The sheer opportunity of delivering this product outside the Core Banking has been the best thing to have happened for Banks in the recent times. In most Businesses, a larger category players enter a space previously dominated by the smaller categoryplayers, depicts the end of the play for smaller players. In Gold loan space, while Banksgot in and find significant growth has not meant the end of road for NBFC’s, rather theycontinue to grow on the same pace.

Tokenisation – Double Gold model:

Double Gold model is multi layered. Herein, First layer remains Traditional Gold loan. Both for the Businesses and the consumers.Second layer will be TOKENISATION of the Gold value, capturing the Gold value and thefuture earnings (which will continue to reflect on the Tokens value).What it means to

Borrower: deposits the Gold (Jewel or coins) with the lender and takes upto 80% of its value in Cash (Fiat, in Rupees in India). Borrower also gets a Tokens along with the cash who’s value is ratio of the value of Gold held by the lender.

Lender: lends the borrower 80% of the value of the Gold therein deposited by the lender on that day’s value as captured from a neutral third party. Herein, Lender not only benefits from the interest rate charged on the Gold while in service of the loan but also enjoys the tokens which represents the collective value of their Gold holding. This keeps sustained despite the loan cycle from fulfilment.Bothe the Borrower and Lender can trade it in registered exchanges to cash the value of the token as per the agreed time frame.

Gold Bond:

Gold Bond is another huge opportunity space that on tokenising, gives multiple leverage to both the investor and the Bank and also insulate the downside. Most importantly,


Concept note:

Tokenisation will bring new Investor class to Gold Bond and if any indications, India has highest growth in Crypto investments.
Currently, in India, Crypto Currency is an instrument of Investment and tax is applicable on trading. Herein, the above model will be fully in compliance and also, attaching the tangible asset(Gold), the Token will have better value and also give us a scope to further lobby with the Government to extend more sops to such practitioners.