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WHY GOLD LOAN DEMAND INCREASED POST LOCKDOWN?

Posted on Thursday November 5th, 2020

The income of most of the middle class families had squeezed due to job loss, pay cuts and undefined income resources with the closing of business amid Coronavirus pandemic lockdown, more and more individuals are opting for gold loan. Some people need cash to run their monthly expenses while others have to pay the bill. People are not applying or moratorium as it will end up in loan burden with the accumulated interest. Those who needed money for their survival are mortgaging their gold to arrange funds in shortest possible time. Now the lockdown has uplifted, people are searching for the lenders for gold loan to get cash in hand. There are some factors which have increased the demand of Loan Against Gold.

Lower rate of interest: It is much cheaper to secure a gold loan than borrowing a personal loan and credit cards which costs huge and results in debt trap if not managed properly because the interest rate on personal loan and credit card ranges from 12 to 16% and from 15 to 30% per annum respectively. If the borrower is not able to repay the loan, it will end up in huge accumulated interest, stress and lastly, it can end up borrowing again to pay back the existing loan.

Surging of the gold price: Gold loans are easily available and comparatively cheaper and you can secure the funds in short time. Apart from such benefits, the huge surge in gold prices which make it more attractive and affordable. The domesticated gold prices have kept on rising sharply in last couple of months. The soaring prices in lockdown have unlocked huge value for gold mortgages for potential loan seekers who are looking for funds and since prices of gold at are at peak mortgaging their yellow metal which can get them the best of the price.

Increased LTV ratio: The gold loan lenders surged after RBI decided to ascend the permissible loan to value ratio (LTV) for loans against gold to 85% from 75%. This aspect of gold loan has made it favorable for individuals who are financially hit by COVID-19 pandemic and are looking for liquid funds to meet their requirements.

Instant processing: When you Apply For Gold Loan lenders evaluate it and credit the loan amount into your account and hold your metal until you repay it back. Nowadays lenders disburse the loan in few hours after you get approved for it and some of them have eliminated processing fees too.

Now when lockdown has been lifted, the gold loan sector is expecting an increase in demand for loans against gold as majority of middle class families are looking for liquid funds and working capital to push their businesses to normal which are hit by the corona virus pandemic crisis lockdown. Therefore, get in touch with ShubhBank for quick and hassle-free ways of getting a gold loan. Your gold will remain at secure place with lender throughout the tenure and you get it back, once you repay it back to the lender.


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COMMON MISTAKE TO AVOID WHILE APPLYING FOR GOLD LOAN

Posted on Monday September 28th, 2020

Gold loans are the straight forward method of raising money in case of an emergency. If you need urgent money for marriage or festivals or travel, you can formally go fall for the power of gold. You can mortgage your gold ornaments to the bank and financial institutions. You do not need to sell the gold ornaments in the market; you can simply mortgage it to the moneylender. However very often people make some fundamentals mistakes while Apply For Gold Loan.

1. Lenders Credibility: – A major blunder that people commit is taking a loan without checking lenders credibility. In a gold loan, you have cash in hand but for that, you have pledged your gold ornaments. Therefore the risk is more on the borrower as compared to the lender. You must check the background of lenders. A gold loan can be risky as a gold ornament will be kept by the lender till you pay the whole amount. So you must take a gold loan from reputed banks or financial institutions as they abided by RBI regulations.

2. Less Research: – You would be doing less research while applying for the loan. When you search online you will get many websites showing you interest rates or processing fees but take your time. Do not run for choosing the first offer. The more you will search, you will get better options.

3. Negligence of repayment structure: – Another common mistake is the negligence of the repayment structure. It is extremely important to study these structures and select the best one for yourself. Check your liquidity of cash flow so that you can pay the EMI amount other you will end up losing your gold jewelry. There are many options for paying the loan amount like Regular EMI, Only Interest EMI, and Partial repayment, Bullet repayment. You can select the best suitable method by yourself.

4. Read all conditions: – Before applying for a gold loan always remember the devil lies in the detail. So get the clear aspect of loan to value calculation. Borrowers must understand how the bank or financial institutions in calculating the value of your gold and based on that you will get the amount of loan. As a borrower, you need to have a good idea about the market value of gold. Mostly Bank offers loans at 22 carats of gold or above. If the gold ornaments are less or impure then the loan can be rejected. Gold coins are also accepted if they are above they can be accepted as collateral.

5. Not Checking prepayment charges: – While lenders do charge any prepayment fee for a Gold Loan but some charge some 2.5% from the outstanding amount if you pay before the tenure period. The prime objective of making prepayments is to save on the interest cost; incurring prepayment penalties would reduce the benefit from making prepayments. Hence, opt for a lender that charges minimal or no prepayment/ foreclosure fee.

To conclude you must remember all the above-mentioned points while applying for a gold loan.


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WHICH IS THE BEST OPTION- SELLING YOUR GOLD OR GOLD LOAN?

Posted on Thursday August 27th, 2020

It is always a mind boggling to decide over, whether to sell the gold or to take a loan against gold when someone needs money and he/she doesn’t know what needs to be done. Many thoughts start juggling throughout minds and questions surround us that should I sell my gold, will I get the right value of my yellow metal or should I apply for a gold loan? Here in this article, we will guide you about that which is the best option- selling your gold or gold loan?

Gold is not just a shiny ornament but it also carries feelings, legacy and emotions than just being an asset. Therefore, most of the people are hesitant about giving away their asset when there is a need of funds. It is always a better option to take a gold loan if someone wants to use it. The main disadvantage of selling gold is that you are only paid for jewelry and you lose the value of make in charges which adds up as significant part while purchasing the same jewelry. The emotional sentiments also counts up as one thinks to start when he/she will be able to buy the gold back while the gold prices are increasing.

Benefits of choosing a gold loan
Gold loan is the secured type of loan, where the lender only look for quality and quantity of your gold rather than your creditworthiness when you Apply For Gold Loan and sanction the amount in your bank account as per your requirement. Once you clear the repayment, you can get your gold ornaments back. This loan will save your time and unnecessary stress of selling your asset which you are not being able to buy soon. Some of the benefits associated with this loan are given below:

Higher Loan Amount: You can get higher loan amount in case of gold loan as it is a secured loan. The maximum limit of gold depends upon the quantity, you pledge against it.

No Need of Credit History: This is the major benefit of availing a gold loan as one need not to have a credit history. Even if you have a low or zero credit score, you shall be granted with loan. If you default on repayments, then lender can recover the outstanding money by selling your gold.

Nominal documentation: One only needs to provide the KYC documents either you Apply For Online Gold Loan or offline. With nominal paperwork, loan amount is sanctioned quickly within a short period of time. Gold is an over the counter product, just pledge your gold ornaments with lender and walk out with cash.

You can take a gold loan by paying very less interest rates and your precious metal will also be in safe custody. Therefore, if one needs to fulfill their requirements or to fund any emergencies, then taking a gold loan is better option than selling your gold. The loan processing is very easy and will be completed in less time.


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GOLD LOAN: ALL YOU NEED TO KNOW

Posted on Thursday August 6th, 2020

Gold loan, also known to as Loan Against Gold. It is a type of secured loan. Gold loan is always availed by pledging gold ornaments with the lender in exchange for money. You can pledge your Gold ornaments, jewellery, coins, and bars to avail of the gold loan. Your gold loan would be as safe to the lender until you repay the loan amount.

Gold loan is similar to a personal loan, there is no restriction in using the money. You can use the gold loan funds for paying medical bills, Tuition fees, purchasing a car, renovation of home and emergency needs.

Features of Gold Loan:

1. Secured loan: – Gold loan is one of the type of secured loan. Your CIBIL score does not matter in this. It does not matter if your poor score. All you need to have physical gold to lend. A secured loan is offered at a lower rate of interest.

2. Flexible Repayment: – You can repay the loan either by EMI or pay regularly the interest and principal amount lump sum at the end of the loan tenure. Gold loans are popular for this flexible repayment.

3. Quick Processing: – Gold loan lenders do not bother about the Credit score as it is a secured loan. Paperwork and other formalities involved in gold loan processing is very minimal. This is because the lender gets your gold in exchange for money.

4. Quick Disbursal of loan: – Gold loan can be disbursed within 10 minutes as the documentation work is very less.

5. No restriction on funds utilization: – Funds received as gold loan can be used for any purpose. You can use funds for purchasing a car, renovation of home, medical expenses, and education expenses.

The loan amount and interest rates
The loan amount varies from organization to organization. It depends on where you Apply For Gold Loan. The loan amount will vary if you get it from a lender or a bank/financial institution. Both private and national banks offer gold loan. The amount sanctioned will be decided after verifying the purity and weight of the gold bars or ornaments. Then the current market rate for gold will be considered based on which you will get a loan. The majority of the lender and banks/financial institutions offer 75% of the value of the gold, which is pretty good!

Again the interest rate will also differ. Private lenders tend to charge higher interest rates than banks. It is a better option to get a gold loan from a bank than from a private lender. Banks levy less interest rate due to the nature of the loan. A gold loan is a secured loan. Hence the interest rate is pretty low compared to other types of loans.

Repayment of loan amount
There are different ways you can pay off the loan. You can either pay the whole amount along with interest at the end of the tenure or may choose EMI. Banks give you more options when it comes to repayment of loans than private lenders.


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HOW TO GET QUICK FUNDS THROUGH GOLD LOAN BY SHUBHBANK?

Posted on Monday July 27th, 2020

Nowadays, irrespective of what is happening with economy due to this pandemic, gold purchase continues among Indian households and prices are hiking gradually. One of major reason for this demand is, gold not only serve as precious metal or important part of culture and customs but the benefits associated with it after pledging it to lenders to get quick funds to fulfill the requirements in emergencies. With skyrocketing prices, a gold loan can fetch you a higher quantum during financial crisis. All you must have to acquire gold for getting a gold loan. It is a secured loan and does not get affected by Credit Score.

ShubhBank will make a gold loan easy for you as we are seller of many financial products. When you Apply for Gold Loan the funds which get sanctioned are a percentage of the total gold’s market value. One can make the repayments via monthly installments, after repayment, gold is returned back to the borrower. There is no restriction on usage but the interest rate varies from lender to lender. Our digital platform helps you to get a fast gold loan as the hassles involved in processing are eliminated. Let’s have a quick look at few points that how to get quick funds through gold loan by ShubhBank:

• Gold loan can be availed at your doorstep.
• The processing of loan along with disbursal gets completed in few hours.
• We have a completely digital lending platform.
• The rate of interest is very competitive which will be easy on your pockets.


When you apply a gold loan, you are able to lessen costs like operational costs to a great extent which will help you to avail lower interest rates and making your loan cheaper as most of the borrowers face the problem of not having enough funds to meet loan processing terms.

An Online Gold Loan from our digital platform offers you a low rate of interest, customized loan scheme, doorstep services as well as pickup and return of gold valuables. You will be surprised to know the ease with which gold loan can be availed in just a matter of few clicks.

BENEFITS OF ONLINE GOLD LOAN
• Doorstep service
• Highest loan quantum
• Customized tenure
• Competitive interest rates
• Insurance cover offered


Availing a gold loan from ShubhBank is as easy as shopping from online websites. You just have to visit a website ShubhBank.com. Search for the gold loan and apply it. Our executives complete the KYC process at your home and loan money is transferred instantly to your bank account after approval. There is always a threat of cyber theft or fraud but our lending platform is extremely safe and secure. We ensure customer’s personal data should be encrypted and protected against any fraud; therefore, security audits and customized strategies are implemented to safeguard the information. This yellow metal is an investment tool which always offer you good returns and liquidity in the times of financial crunch by opting a gold loan.


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COMMON MISTAKES TO AVOID WHILE APPLYING FOR GOLD LOAN

Posted on Friday July 10th, 2020

Gold loan from ShubhBank is emerging as one of the popular ways to get quick funding for your needs and requirements. In India, most of the people hold the gold as a saving instrument but it is also increasingly being used as a credit tool these days. If you are looking for gold loan, there are some common mistakes to avoid while applying for a gold loan that are listed below to have a smooth loan journey.

High interest rate to get high LTV: The loan quantum depends upon the market price of gold per gram. Every lender allows for LTV of a maximum 75% and most of the lending institutes provide highest LTV offers at significantly higher rates of interest. Beware, always chose the deal which provide you higher LTV ratio at lower interest rate. To exemplify, ShubhBank offers Online Gold Loan at Competitive Interest Rates with highest LTV.

Interest rate calculation: Some of the lending companies often market their loans to show optically lower rate of interest and subjected to terms and conditions, you might end up paying a higher interest rate. There is also a term called jumping interest rate, where the interest jumps with the passage of time or on missing your EMIs. It is advisable to choose fixed interest rate and do check how your interest rate will be calculated.

Hidden charges: Multiple lenders hide a lot of charges in their loan agreement that commonly includes processing fee, foreclosure charges, penalty charges and auction related charges. Always counter in on additional charges to know the actual financial cost of your loan and these charges can be burdensome. You may Apply For Gold Loan at ShubhBank which offer transparent loan schemes with no hidden charges.

Wrong tenure: It means for the loan duration and may vary from 3 months to 3 years, so always chose a tenure that suits you the best. The longer tenure is not better always and ultra-shot tenure can lead to auction very soon. On the other hand, choose an optimal tenure from 6 months to 1 year. The interest calculation is always linked with your tenure; therefore, choose wisely depending upon your cash flow visibility and repayment capability.

Auction terms: If you ever default on the loan repayment then your gold will end up in auction. Your lender will be entitled to auction the pledged gold into the market to recover their loan money along with interest rate. You should be entitled to a prior legal notice before auction. In case, if you are short of cash flow to repay the loan, choose either to renew your loan or apply for a takeover with some other lender. Hence, it will save you from the auction of your gold.

As a borrower, you have to be aware and always take an informed decision. Don’t fell as a prey to marketing gimmicks and always research for best lenders and deals before taking a loan. ShubhBank has very handy deals of Gold Loan In India and you can go through them on our website.