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.

India is a country where everyone is fond of Gold or Gold ornaments. Gold jewellery mostly comes in guest appearances and later most people keep it Bank locker. They invest a big amount of money in gold ornaments and later they can use it in case of urgent cash flow. Many people around us still have doubt taking a credit against gold ornament in an emergency. In case of any doubt, you must be aware of this fact that this loan is the best way to meet the unwanted situation.

It is seen that in this method you can meet all types of financial crises without having much trouble. When it comes to credit factor or finance issues, it is seen that there many banks and NBFCs who have started giving mortgage or finance against jewellery. But when you are going to “Apply For Gold Loan“ then always consider these following things


1. Compare the options: – It is a normal and straightforward way that when it comes to getting some financial help, a person will start searching for the right option in loan. There are no fixed guidelines as the availability of quantity depends on the borrower requirements. So to get the best option you need to search the best in the right way.

2. Check the credibility of the lender: – It is considered as the best and secure way of lending process. The ornaments will be kept by collateral; the jewellery will be kept with the creditor till the time borrower repay the amount. If the whole amount is not repaid; the creditor can sell the ornaments to get the amount recovered.

3. Check the repayment structure: – This part is very important. This is because the repayment of loan plays a vital role. But you need to be sure that you have selected the best method to pay the loan amount.

4. Know the quality: – When you are going to get the financial credit through the gold ornaments of your own, you must know the value of ornaments. The creditor will give the amount as per the quality of ornaments. So you have to be the jewellery you are pledging the must have the value that is required by you in case of financial help. The weight as well as the quality of it will decide the value of lending.

5. Types of Gold Accepts: – When you are going for this type of loan, you must be aware the Banks and NBFC institutions will not accept the gold bar. You will get loan only by Gold coins and gold ornaments.

6. Faster processing of loan: – The disbursal of this type of loan is quick and easy. The government has fixed the proper timeframe for this.


Overview
So when you want to apply for finance, then you want to check these factors so that you will get the best rate and best sum for your ornaments. You can also go for a “Gold Loan Online“ and get the best result from them for your need as well.

A gold loan is a quick way to get a loan and meet your financial needs at low-interest rates. You can opt for this loan to cater to many financial needs like child education, marriage etc. or expanding or investing in your business. Instead of keeping the gold jewelry at home or in a bank locker, you can use it as an asset by taking a loan against gold to meet the financial needs.

What is a gold loan?
Gold loan is a secured loan that is offered by banks against collateral (Gold jewelry and gold coins and any other gold item). The gold is returned to the borrower after the repayment of the loan. Generally, is gold loan is taken for short and medium tenure. Gold loan is preferred over other types of loans as it is easy and the disbursal of loan is very quick.

Eligibility Criteria for Gold loans
Gold loan is famous because the eligibility criteria is very minimal. You do not have to be employed or earning regular income or satisfy any income criteria to avail of this gold loan. The loan amount which will be sanctioned depends on the value of gold. If you are an adult and own gold, then you can get a “Loan Against Gold“.

The two simple ways to get eligible for loan is as follow: –
1. Your age must be above 22 years.
2. You must own the gold ornaments.


Why to choose the gold loan?
Gold loans are the best choice to get “Instant Gold Loan Online“. In case if you are unable to repay the gold loan then the bank has the authority to keep the gold with themselves. Here are some tips to get a loan quickly.

• Compare the interest rates: – There are many banks and financial institution which are offering gold loan. So, before choosing the best interest rate you need to search with providers.

• Check the add-on charges: – Like other loans, in gold loan also there is processing fees, documentation charges, notice charge and so on. Therefore, you need to understand this amount.

• Check the quality of ornaments: – Before applying for the loan, you have to check the quality of ornaments also. The gold should be of 22 or 24 carat. Apart from this, the Bank cannot accept other metals which are present in gold jewelry.

• Security of Gold: – You must ensure the safety of gold before providing them as collateral for the loan.

• Don’t Do LTV Calculation: – LTV is said to be advance to Value Ratio, and the creditors use it to express the ratio of the loan to a net worth of the asset. The lender uses this to check the risk involved in this. The lender will calculate the amount on this basis.


Conclusion: –
If you are planning to go for a gold loan, then you need to check all points carefully. To get the best loan rate & guide you can go for Gold loan with Shubhbank