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HOW YOU CAN PROCEED WITH GOLD LOAN?

Posted on Monday March 15th, 2021

In India, purchasing gold on special occasions and preserving it as precious ornament is an old tradition. Due to such huge demand where this yellow metal is used as savior in financial crisis, the prices of gold are also skyrocketing. Sometimes in life, you have to struggle for financial back up required during emergency situations. In such case, pledging this precious metal at lending institution help you to provide liquidity. Most of the borrowers opt Loan against gold which enables the person to generate quick money and utilize for personal or business purpose.

Process to secure Gold Loan
One need to visit the particular financial institution with your gold ornaments or can apply for gold loan online from website.
Upload or provide the basic documents required by the lender to get approved for the lender.
Afterwards, gold valuation is done to check gold purity then the loan will be sanctioned which may range from 75-80% of market value of gold. Moreover, lender may deduct processing fees which varies from lender to lender.
On approval, the loan agreement will be signed between lender and borrower and loan amount get disbursed directly to the bank account of borrower.

Benefits of Loan against Gold
Instant approval: You can secure this loan by pledging any type of gold jewelry either it is a gold ring, necklace or coin. You will get approved for the loan money as per the weight of pledged ornaments.

Security assurance: The borrower will be offered with 100% security assurance by keeping his/her pledged assets at high-security place. Even, you can rest assured of the security of your precious metal if you have taken a loan for longer tenure.

Higher gold loan value: The lender will give you the highest loan to value ratio considering the status of the current market value of the gold. It will help you to get the best value compared to other loan options.

Lower interest rate: You will get the lowest possible interest rates on gold loan as it is a secured type of loan. You can also pay the rate of interest as per your convenience according to preferred payment mode.

Minimum documentation: Whether you Apply For Gold Loan Online or offline, you do not have to submit or upload the piles of papers. You just ask to submit basic proof documents such as passports, voter id’s, driving license, aadhaar card, pan card, passport size photographs etc. to get approved for loan.

No prepayment penalty: In case, you want to end the loan before its repayment period then there will be no deduction on the prepayment. You can easily repay the loan money before the end of gold loan tenure.

Hence, if you are in tough financial times where you do not have enough savings to help you come out of the cash crunch, then securing a loan against gold will be best option for you. Do a proper research, and look for a genuine and authorized lender who has a prior record of offering a gold loan.


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HOW GOLD LOAN CAN HELP YOU IN QUICK NEED?

Posted on Monday February 8th, 2021

There are some uncertain times when unforeseen expenses can deter your monthly income towards various expenditure outlays. In such situations, most of the people turn towards their savings to escape out the period of cash crunch by compromising their financial security in the long run. Nowadays, emergence of cash loans has effectively reduced the financial burden considerably as they are extremely helpful to get short-term funding on an emergency basis. Moreover, the minimum eligibility criteria associated with such loans allow potential loan seekers access the funds without much hassle.

The perspective borrowers can eliminate their emergency requirements easily by opting for popular funding solution like gold loan these days. The gold loan can help borrowers meet their urgent requirements by offering better convenience as compared to other funding options. ShubhBank has streamlined the loan processing of yellow metal to quite an extent. Some of the perks are offered by us to boost the convenience of availing such loan which is listed below:

High LTV ratio: Loan to value ratio is the percentage of the pledged security’s total value that can be secured as a loan at maximum. To exemplify, if the precious metal you pledge is valued at Rs. 20 lakh, and the LTV ratio offered against it is 75%, you can avail Rs. 15 lakh as the loan quantum. In this context, you can avail the highest loan to value ratio against your yellow metal at nominal interest rates.

Minimum documentation requirement: To take a Loan against Gold you will neither need to undertake an elaborative paperwork nor comply with any strict eligibility criteria. In gold loan, the loan quantum disbursed is based solely on the value of gold ornaments you pledge, you can secure it without submitting any documents like your income tax return proof and such. Apart from this, the lender does not take your credit score into account to deem you eligible for the borrowing.

Assured security of the collateral: You can give away the hesitation of pledging your gold to take the loan with lender’s uncompromising measures to secure your precious metal. To illustrate, the yellow metal collected from you as a security is deposited to the lender’s vault where it is stored safely until the time you repay the loan. Sometimes, it receives additional security through an insurance scheme offered at no additional charges.

Flexible repayment term: If you Apply For Gold Loan you are enabling to opt for a repayment tenure ranging between few months to years. In such period, you only have to pay the interest accrued against the quantum availed and the rest as bullet payment after the loan tenure get completed as compared to other secured types of loan.

With such great benefits, gold loan makes for the most convenient option when it comes to meet any type of cash requirement- whether long term or short term. You must have to understand that how gold is valued before you apply for it to ensure that you are aware of the entire loan procedure.


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HOW TO USE THE GOLD ORNAMENTS TO GET A LOAN?

Posted on Saturday December 26th, 2020

A gold ornaments are not just a priced possession or an investment but also a good way to secure funds. Indian people have a sweet spot for yellow metal; therefore, it is one of the largest gold importers of the globe. It also provides you the sense of financial security at the times of emergencies by selling your gold jewellery to meet the obligations. Nowadays, you need not to sell your precious metal as you can take a loan against it. Here in this article, you will come to know how to use your gold ornaments to get gold loan.

As per name, a Gold Loan helps you to borrow money by pledging your priced possession with the lender. One can repay the loan amount within the fixed time period and can get your gold back from the particular lender. The financial institutions usually give loans of only a fixed percentage of the market price of gold but one is not allowed to borrow money of the entire value of the gold you put as collateral. In case, you are facing a financial crunch, a gold loan makes much sense.

A loan against gold unlike other loans has a minimum set of eligibility requirements. You only need to be 21 years old and should be the genuine owner of the jewellery. The financial institutions does not require to consider factors as such your income and credit score as you are keeping your gold as collateral against the loan money. In case, you are unable to repay the loan, the particular lender has the right to auction your jewellery to recover the dues.

Gold loan is a secured type of borrowing as the application process is very quick. Even, when you Apply For Gold Loan the amount will get disbursed on the same day you apply for it. to avail this loan, you can either visit to a nearest branch of the selected lender or you can apply it online through the website. You just have to fill in the application form and upload the documents such as ID proof, residence proof to take the loan. The maximum amount of loan is calculated depending upon the value of your gold. If you get approved the amount will get disbursed in few hours after applying it.

Most of the lenders only accept the yellow metal with the purity ranging between 22 to 24 carats. Few lenders also accept gold bars and coins with a purity of 99.99%. It is a short-term loan with a short period of time. All lenders have their own minimum and maximum borrowing limits for the loan. The interest rate on the gold loan is minimum than other loans depending upon the amount you borrow.

Life is uncertain, so there are several events when you need quick funds that you might not readily have but if you have gold ornaments, a gold loan can be an excellent option. Gold loan is one of the convenient ways to access needed funds to meet your emergencies.


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FEW MISTAKES TO AVOID WHILE APPLYING FOR A GOLD LOAN

Posted on Monday September 7th, 2020

Gold loans are the convenient and straight forward method of raising the funds in emergency situations. Gold is usually secured in the forms of ornaments and jewelry often comes to the rescue whether you need it for wedding expenses, travelling or starting up a new venture. Many of the banks and NBFCs are in competition to give gold loan with great benefits and you can monetize your yellow metal without selling it in the market. However, many a times people get misguided, therefore needed to look after few mistakes to avoid while applying for a gold loan.

MISTAKES TO AVOID WHILE SECURING A GOLD LOAN
– A major setback proved for the borrower is not to check the lender’s credibility. The loan quantum in gold loan is based upon the fraction of gold that you have pledged to the lending institution resulting in the increased risk factor for borrower than the lender. Therefore, you must check the background of the chosen financial entity as you have to place your gold as collateral to the lender till the time you repay the borrowed amount back. Always choose a well-established lending institution that is regulated by RBI for gold loans.

– The other common mistake made by loan seekers is not comparing the lenders in the market. If you want to compare then you can use any of the aggregator websites as many of the lenders would be ready to give the loan amount evaluated on the basis of your gold. When you Apply For Gold Loan never go for the first offer because more you compare, better the offer you may find. Always choose a lender who offers lower interest rate or higher LTV ratio.

– There is another point that needed to be avoided is being negligent of repayment structure. It is always important to understand the structure and zero in on the best that matches your needs. Be sure about the requisite liquidity and how you are going to repay either in the form of EMIs or bullet payments otherwise you could lose your gold ornaments.

– It is important to get into the finer aspects of loan to value calculation while you Apply For Online Gold Loan or apply it offline. Most of the lending institutions rely on the data furnished by their central office to evaluate the gold and to grant you a loan for up to 70% of its market value. Being a smart borrower, you must have a good idea about the market value of your gold. However, quite often these values are flexible.

At the end, you must check upon the fine print of gold loan as yellow metal has more sentimental value and ensures disciplined repayment from the borrower. Do keep in mind the conditions in which your lender can possess the gold and auction it in case of any default or any prepayment charges if you close the loan before the tenure ends. Make sure to discuss all these aspects to have a safer and convenient loan journey.


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GOLD LOAN- PERFECT WAY TO ACCESS FUNDS BY UNEMPLOYED PEOPLE

Posted on Tuesday August 18th, 2020

Nowadays there are various conditions that must be satisfied for getting a loan sanctioned from a lending institution such as creditworthiness, financial status and so on. All these factors are used to evaluate the borrower’s ability to repay the loan. A regular source of income is the major deciding factor for lenders to approve the loan application. However, with such strict guidelines, it is possible for individuals who are unemployed to secure the funds through gold loan. Therefore, gold loan is perfect way to access funds by unemployed people as it just need source of income either you are unemployed and gold ornaments that needed to be pledged as collateral.

A yellow metal can fetch higher amounts of cash during financial emergencies. To get a gold loan sanctioned, all you need to have gold because it is not affected by low credit score, employment as it is secured by collateral. The quantum sanctioned as loan is basically a percentage of the total gold’s market value and repayment is done via monthly installments. These features attract the loan seekers to Apply For Gold Loan as it does not have any restrictions on usage. Many of the lending institutions help to get a gold loan fast. There are lots of features provided by such companies so have a look on them:

-> It is made available at customer’s doorsteps.
-> The processing of gold loan along with disbursal is completed within few minutes.
-> Most of the financial institutions have digital lending platforms.
-> Interest rates on gold loan are much lower as compared to other secured and unsecured loans.


In recent times, loan seekers are cutting down on offline lending stores because online gold loans are cheaper as it lessens the operational costs to a large extent. The online lending platforms offer low interest rates, zero processing fees, doorstep services, personalized customer support, pickup and return of gold assets. One will be surprised to know the ease of availing Online Gold Loan and it’s just a matter of few clicks to apply for it:

-> Click on the site of bank or NBFC from where you want to request a gold loan.
-> Company professionals will complete the KYC process at your doorstep.
-> The loan quantum is transferred as quickly as it gets approved in the borrower’s bank account.


As mentioned earlier in the article that gold loan can be availed by unemployed people so there are some tips to be followed to increase your chances of getting a gold loan approved:

-> Always maintain a good credit history to instill the confidence of lender in borrower.
-> Providing the genuine collateral is another way to increase your chances of approval.
-> In case of gold loan, the alternate sources of income rather than regular job can boost your chances of securing a loan.


A guarantor can also strengthen the position of loan applicant as the lender get a sort of guarantee that money will be repaid in time.


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HOW GOLD LOAN BENEFITS OVER OTHER LOANS

Posted on Wednesday January 29th, 2020

Gold loan from ShubhBank is an easy and quick way to meet instant financial requirements at low rate of interest. You can meet enormous range of needs such as child’s education, wedding expenses, business investment etc. You can meet your urgent needs by making the gold assets work by taking loan against them. The benefits associated with gold loan include hassle free and fast processing, no hidden charges and security of the collateral etc. here are some reasons that how gold loan benefits over other loans.

• It can be availed at lower rate of interest than other loans.
• The tenure ranges from few months to 4 years or more.
• There is no upper limit for loan amount in gold loan.
• Minimal documentation.
• No credit history and no pre-payment penalty.
• Benefit of fast disbursal as loan amount is provided within few minutes.
• Safe custody of asset.


It provides a lot of flexibility, something that is convenient by those who take gold loans. Another for this loan’s popularity is that you do not have to be employed or have to satisfy any income criteria to avail it. If you are 18 years old and own gold then you are eligible to avail a gold loan from ShubhBank. It does not include any exhaustive documentation and can be availed with only KYC documentation. Before applying you have to furnish the following documents:

• Two recent passport size photographs.
• Identity proof such as ID card, Aadhaar card, ration card etc.
• Address proof such as Aadhaar card, domicile certificate, utility bills etc.


Gold loans are always the best option to meet your emergency fund requirements. You also need to understand that you are borrowing against gold ornaments, which you need to repay with the accrued rate of interest. In case you default on repayment, then lender has authority to confiscate your jewelry to make up for the loss. You need to be more cautious while you Apply For a Gold Loan. Here are few tips for choosing a gold loan:

Compare rate of interest: Many banks and NBFCs are offering gold loans with great benefits. So make sure to get best rate of interest by comparing the interest rates provided by different lenders in the market.

Check add-on charges: Like other loans, there are always some add-on charges such as processing fee, documentation charge etc associated with Loan Against Gold. Therefore, you should understand all the add-on charges before applying for a loan.

Security of gold: You provide your gold jewelry as collateral so you must ensure the safety of asset. Always check the security measures at the lender’s end for the security of your gold.

Now you know gold loan better then make sure you take full advantage of it and educate others also to avail gold loan from ShubhBank. Empower all to make the better choice when it comes to taking a secured loan. Gold loans are preferred over other types of loans owing to quick disbursal without tedious paperwork.