Google Pay rolls out support for gold-backed loans in India

Google Pay update: Google hosted the 10th edition of Google for India event in India today wherein it announced support for gold-backed loans on its online payment platform, Google Pay. The company today announced that Google Pay users will be able to loans with gold as a security on Google Pay. The company also said that it has partnered with Moothoot Finance to offer the feature in India.

"Around 11% of the world’s total gold is held by Indian households. Now with gold-backed loans available on Google Pay, this latent asset can be mobilized for economic activity," Google wrote in a post on X (formerly Twitter) announcing the news.

The company also said that the gold-backed loans will be provided at affordable interest rates, and offer flexibility and security to the lenders.

In addition to announcing support for gold-backed loans, Google also announced the expansion of its credit line feature. For the unversed, Google had first announced the availability of credit line in India at the Google for India event in 2023. At the time, the company had announced a partnership with the ICICI Bank and the Axis Bank for offering loans to individual customers and merchants in the country. This year, at its Google for India 2024 event, the company expanded this feature by offering support for the Aditya Birla Finance Limited. “We’re adding Aditya Birla Finance Limited to the portfolio of credit providers on Google Pay, giving users a wider range of credit products to choose from, to meet their individual needs,” the company added.

Lastly, the company announced that it is offering AI-powered guides within Google Pay to users to help them understand various credit products including repayment cycles, eligibility criteria and EMIs, to name a few.