The world economy is in a state of turmoil due to COVID-19 pandemic, leaving most of the population insecure about their jobs and finances. The financial anxiety is increasing at an alarming level during these tough times; it’s hard to make rational choices about the better ways to manage finances. However, making smart financial decisions by avoiding money mistakes are must to ensure your financial security in future. In this article, we are listing few tips to overcome financial crisis at a personal level.

→ Fuel up your emergency fund: Anyone can face an actual emergency such as a job loss or less income to pay regular bills. It is the right to beef up your emergency funds as financial experts’ advice to have three to six months worth of living expenses in your savings. Nowadays, when you are working from home, you can save so many bucks spent on the commuting, meals, and laundry towards your emergency funds. Moreover, you are unable to access any leisure activities like movies, restaurants, concerts etc., you can also put that money towards your fund.

→ Look on your spending habits: If you are insecure about your finances during this ongoing pandemic, have a closer look on your expenses. Try to spend on crucial expenses and cut down your unnecessary expenses to a minimum level. Your monthly bills have to be your priority, else can wait. Priorities essential utility bills like electricity, water, insurance premiums and loan EMIs. Look for a way to buy products in bulk for minimum price.

→ Get a loan to avoid immediate cash crunch: If you are a business person then you may have a disrupted cash flow as well as income disruptions to pay your employees and regular bills. Therefore, you can “Apply For Loan“ either personal or business depending upon your repayment capability to overcome this immediate cash crunch. However, taking a loan can be easier option these days, but consider it as a last resort. If you find that you will be unable to repay it easily then do not take on debt to worsen your current situation.

→ Opt for second income: Try to come up with some innovative ideas to earn extra income. You can take up freelancing projects, online part-time jobs or make your past time activity to earn for you like handcrafts, baking, chocolate making, culinary skills etc. The earnings from these projects can be small but this small proportion can add up to something very significant in future.

→ Do not sell your stocks: As the trending stock market crashes, it will tempting you to sell your stocks but history imparts that stock markets have always recovered over time, so do not react to it without having a word with any financial expert. Now, if you decided to sell your stocks, you will automatically lose the opportunity to participate in the market recovery. A panic stricken decision of selling your stocks may lead to significant money loss and you may fail to achieve your financial goals.

Have you ever thought what protects the rights of borrower and lender when a loan is sanctioned or what kind of issues they might face after lending or borrowing money without a contract? The loan agreement is a contract that binds people into some kind of restrictions and regulations to formalize a loan process. It is necessary before lending as well as borrowing money. There are so many types of loan agreements depending upon the type of loan by following the state and federal laws. In this article, ShubhBank gives you a complete guide to loan agreement and its working.

The agreement contains all the details regarding how much quantum has been loaned and the time by which the borrower have to pay back the secured money. Once the papers are signed, the borrower is obliged to pay the borrowed amount to the lender. It also prevents illegal or excessive repayment of interest rate, thus safeguarding the borrower’s right when they “Apply For Loan“. It mutually benefits both the lender and borrower as it assures the lender with guaranteed payback as well as assures the borrower with no hidden charges levied on the loan money. The agreement allows people to take legal action and save you in case of any discrepancy. It is always advisable to draft an agreement to stay at safe side while lending or borrowing the money. There are various sections penned in agreement and enlist as following:

BASIC INFORMATION: Each loan agreement has a section that enlists the details of borrower and lender. The details are listed about the person’s full address, salaried or self-employed, its designation and the numbers of lenders and borrowers with a specified guarantor details in a separate section. At last, a section is included that specifies date and location of signing the loan agreement documents.

LOAN DETAILS: After listing the details of people involved in loan process, one must outline the specific details about transaction and payment information, the interest rate levied on the loan amount etc. In payment section, the details about EMI frequency are listed and also include the acceptable payment mode such as cash, net banking, credit card payment etc. In interest section, information regarding the type of interest rate is listed whether it’s fixed or variable and the date from which the interest will accrue.

DEALING WITH A VIOLATION: If a lender has sanctioned the loan by taking collateral as a security against any “Loans In India“ then make sure to mention the terms related to collateral in the loan agreement. Generally, secured loans have such section in the loan agreements mentioning details of the security agreement where for unsecured loans; one can omit this section from their documents. There is an additional provision in agreement which prevents the violation of the agreed norms. It can help the lender to recover the borrowed amount through legal action or by taking possession of assets in case the borrower defaults on loan payments.

Gold is a precious commodity held by most of the Indians as a valuable asset in the form of jewelry and bars as it can be utilized to avail funds to support emergency cash requirements. Among many financial institutions, ShubhBank has identified the emerging financial needs of clients and to support their livelihood in view of the current turmoil of COVID-19 outbreak. We have set up a gold loan at ShubhBank, a product backed by gold jewelry as collateral in order to address the needs of people and to provide them hassle free credit. In recent times, traders and businessmen will seek a gold loan to resume business operations amid lockdown as the loan money is mostly used by small enterprises as short-term working capital.

The gold loan provides required funds for most of the small scale industries as they have not received any payments during the lockdown. Hence, they will need money and most likely to pledge gold for loans. Due to some relaxation in lockdown guidelines, ShubhBank being located outside COVID-19 hotspots have started functioning and witnessing the demand of “Online Gold Loan“ at higher level in Northern India. However some customers are choosing to sell the metal to take advantage of unprecedented prices but demand for gold loans may rise in the lockdown as the risk profile of borrowers deteriorate. A gold loan from ShubhBank is uniquely positioned to capitalize on COVID lockdown demand especially for small business clients as many families have seen either a slowdown in cash flow or loss in business. This loan is most feasible and least risky choice to raise funds to keep the production unit and household ticking.

Our bank can provide quick finance to customers against pledged gold and quantum of loan can be sanctioned depending upon the factors such as purity of gold, tenure etc. The loan quantum also depends upon the form of gold either bars or jewelry and the repayment capacity of applicant. Coins and bars generally offer higher LTV ratio as compared to gold ornaments. When you “Apply For Gold Loan“ your metal is evaluated and after valuation, 70-80% of the value of gold is offered to you along with applicable rate of interest. You can apply the loan online or by visiting our branch. You have to provide PAN, recent passport sized photographs, identity proof and address proof with loan application. A loan processing fee will be charged on it. In case, you default on loan, the lender has right to sell your gold to recover the dues as per the terms of loan agreement. Some useful points to be noted while you avail a gold loan are given below:

• Loan against gold at ShubhBank can be disbursed as quickly within 1-2 working days.
• This loan typically has tenure of 12-18 months depending upon loan money.
• Gold deposited by the borrower is kept in the safety vault in locker room of bank.
• When the loan is repaid, your valuable asset is returned to you in the same state as it was received.

COVID-19 is creating a unique problem of funding availability. Banks or Financial institutions may be flush with liquidity but are unwilling to lending except to blue-chip borrowers. The old unsecured loans like personal loans are getting harder to come by and lenders are looking beyond mere credit scores. This has created a unique problem for individuals and small businesses struggling to raise money. One option that has emerged is gold loans.

As in this situation, we can say that life does not always move according to the plans. There are high and low in everybody’s life and financial requirements may come up at any time. It may be emergency medical expenses, educational expenses, or investing the funds in existing business and many more. One should have funds in hand to meet them. The suddenness of fund requirements needs to be fulfilled, and the relatives or the friends may be unable to help, and one needs to take loans from banks and other financial institutions. It is a great option to consider “Gold Loan with ShubhBank“ at a moderate interest rate.

Process of applying the loan
Getting a loan against keeping gold as collateral security is quite a simple process. One needs to pledge the ornaments biscuits, coins, bars, and any other material made of gold to the lending bank or the financial institution. This type of organization after scrutinizing the necessary documents and evaluating the ornaments by the experts decide on the amount of loan and approve it. The amount can be disbursed immediately through demand draft, cash or online transfer directly to the account.

Availing the loan
One can “Apply For Gold Loan Online“ by visiting any of their desired bank or financial institutions website. The website of these banks and institutions provides all the details of taking a loan. One can get the hassle-free loan against pledging gold at a very moderate interest rate and an extended period of prepayments through monthly instalments. The process of taking a credit against them is entirely transparent and is quick and efficient.

However, one needs to visit the bank or the financial institute with the gold that is intended to be pledged so that the experts do a proper evaluation of the material and the amount settled. It needs to be done after the application is made online and the financial institute shows interest and reverts on the subject. The document for the title to be pledged for the loan should also be taken to the bank or the financial institution at the time for scrutiny and evaluation. Many of the financial institutions provide credit as high as 85% of the value that has been pledged. The gold pledged is entirely safe from any tamper or damage and one can get them back in the same form as at the time of pledging after clearing the amount and all other dues.

Overview
It is always better to take the loans to meet emergency needs and not selling them. Many institutions have opened their doors to provide loans keeping the gold as collateral security, and one can avail the can easily without wasting time.