Feature Image

HOW GOLD LOAN BENEFITS YOUR FINANCIAL NEEDS?

Posted on Monday July 26th, 2021

Nowadays it’s common for people to take out loans for number of reasons such as for personal expenses, to buy a home or funding a business etc. There are number of loans offered to borrowers to fulfill their different requirements. Loans against gold have become increasingly popular these days as they can be availed without fixed purpose, thus serving multiple needs. The advantages included in gold loan are affordability, convenience and fast approval. Apply For Gold Loan as it is a right fit for your financial emergencies.

Knowing the numerous benefits of gold loans can help you what you should look for while choosing a lender. Analyzing each and every benefit offered by different lenders can help you to get most value for your gold in every way. Some of the benefits of gold loan are listed below:

Secured Loan: A loan against gold is secured loan which borrower can secure by pledging any collateral to the lender. By providing an asset to lender ensures him no risk of loss beforehand. It will assure the lender to offer the loan to borrower without any hesitation and your loan application get immediately approved which is a tough task in unsecured types of loans.

High LTV ratio: It is important to know that the LTV of unsecured loans is based upon the credit history of borrower where as Gold Loan have fixed value and proves to be better option in term of LTV as gold itself is a highly valued commodity in the market. It is the significant reason why the LTV ratio of gold loan is huge which ensures the borrower to get the best value of their asset.

Quick loan transfer: Getting a gold loan gives you the power if accessing the funds faster. It is one of the key advantages of gold loan that it’s handy in times of emergency like medical or business needs. In case of urgency, a lot can be at stake for a person who can’t wait for the loan disbursal. However, a gold loan can be disbursed in a matter of few minutes after loan approval.

Convenient option: India is the country where the consumption of gold is much higher than any other country which makes gold an accessible asset in homes. People here use to store the gold at home or in lockers at banks. Taking all such things into consideration, a loan against gold becomes more convenient option as compare to other secured types of loans.

Enhance the credit: There is always a simple set of eligibility criteria over gold loan but it acts as a credit enhancer in innumerable ways. Since the repayment is flexible and this works to build up your score to secure other loans in the future either you Apply For Gold Loan Online or offline.

ShubhBank offers all these great benefits along with flexible repayment, lowest interest rates, simpler documentation and many more. To know more, click at our website ShubhBank.com to make your gold loan experience the best.


Feature Image

WHY GOLD LOAN IS BEST OPTION DURING FINANCIAL SHORTAGE?

Posted on Thursday June 24th, 2021

Nowadays inflation is high, so gold is considered as an outstanding hedge in the volatile market conditions because it not only provides you golden returns but also helps in getting good mortgage value. In these tough times of this pandemic outbreak, where banks are offering loans at high interest rates, interest charges for gold loan continues to be cheaper. One can Apply For Gold Loan to fulfill his/her duties during shortage of finances in COVID-19 economy crash.

A loan against gold can be availed from any bank or NBFC by pledging your yellow metal as collateral. This secured loan can solve your money crisis to a large extent. You can secure loan money depending upon the amount of gold you have and use that quantum to look after your financial requirements. It is truly evident that interest rates offered on gold loan are far cheaper than any other loan. In this article, we have mentioned various reasons why gold loan is the best option to raise cash in financial crunch.

Cheaper Loan: An unsecured loan does not require any asset to pledge as collateral, therefore the interest rates charged by the lender is often high than gold loan. If you reply for any unsecured loan, lender may charge a processing fee for that loan. In case of gold loan, lender may not charge any processing fee. As gold loan is a secured loan, so it is cheaper as compared to other loans making it better option to raise funds.

Secured Loan: The LTV ratio for loan against gold can be up to 70-80% depending upon the market value of your gold ornaments. For example, you may avail up to Rs. 75 for every Rs. 100 worth of a pledged gold assets. It is one of the most secured loans as you will have enough cash to look after your needs.

No Credit Score: While applying for any loan, your CIBIL plays a great role in approving your loan application. If your score is low, you may either get your loan application rejected or lender may charge you a high interest rate. However, in case of loan against gold, your credit score does not matter as long as you have gold jewelry to pledge.

Flexible Repayment: One can choose the repayment period as per your convenience, which you feel will be suitable for you to pay back your loan quantum to the lending institution. The interest rate will be charged on the basis of your loan tenure and amount.

Well, before you Apply For Gold Loan Online or offline, make sure to research for best gold loan solutions and compare the various lenders in terms of processing fee, interest rate and loan tenure to zero in on a scheme which you feel will be best for you. Once you finalize the lender and loan scheme you want to avail, you can apply for easiest and quickest gold loan either on the bank or NBFCs website or by visiting the nearest lender’s branch.


Feature Image

WHAT CONSEQUENCES ONE MUST FACE WHILE NOT REPAYING GOLD LOAN?

Posted on Monday May 31st, 2021

A gold loan is sanctioned by various lending institutes against gold to meet urgent financial needs. One needs to pledge gold articles as security against loan and have to pay the applicable interest rates on the borrowed amount at the end of the given repayment time. The major benefits of this loan is that interest rates are much lower than other types of loans and you can Apply For Gold Loan with a poor credit history as your gold assets serve as collateral. However with all these benefits comes an important query that what if you fail to repay the gold loan? Several times, you may suffer tough times; it’s difficult to repay the loan on time. Let’s see what happens if you fail to repay the loan.

CIBIL turns bad: The credit score indicates your timely loan repayments and gives the lender an idea about if you are prompt with loan repayments. The lending institutes send your repayment data to various credit bureaus and prepare your credit report to assign a CIBIL score. If you default on any kind of loan you will surely get a bad credit score. The financial institution won’t sanction you any new loan is you have a bad credit history. If anyhow you manage to secure a loan, the rates of interest could be really high.

Penal interest: A lender may charge you the penal interest for time overdue. This is literally over and above the applied interest rate that you repay for your gold loan and this may vary for different lenders. The penal interest rate is about 1-7% for a year.

Legal action: Usually lenders don’t have problem if there are two or three slip-ups in loan repayments. If a default on EMIs happens for three consecutive months then you may get in problem. Moreover, if you ignore the warning alerts from lenders, you may get a legal notice at your provided residence. You are informed on when to repay your loan EMIs.

Auction of gold: As you have pledged your gold to serve as collateral, so you could lose your precious metal and ornaments to the lender if you default on gold loan. In case, you don’t pay back the gold loan by the final repayment date, you lose your assets as the lending institution will auction your gold items to recover the outstanding dues. In such situation, you are not allowed to stop this auction as lender lawfully recovers the dues by selling your yellow metal.

If you Apply For Gold Loan Online or offline, you may get tenure of minimum twelve months to maximum thirty six months. One may have an option to repay the loan against gold through monthly EMI or interest only. It’s all up to you. Which method you choose, you would have to renew the loan by paying processing fee. Therefore, if you are unable to repay the principal, renew your gold loan by paying levied processing fee or any difference in the market price of gold.


Feature Image

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.


Feature Image

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.


Feature Image

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.