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.

If you are running a small business, then it is necessary to have high quality machinery to ensure operations run smoothly. With the hiking prices amidst COVID-19 outbreak, most of the business cannot survive without an equipment financing. Whether somebody owns a restaurant and in need of new food processors or a transportation business that requires more automobiles, so pursuing a “Machinery Loan“ is a worthwhile decision. In this article, we have described some reasons to pursue a machinery loan.

♦ Invest in machinery amidst COVID-19 outbreak: As your business suffered the Corona virus pandemic, you may find that now it is a perfect time to invest in a new equipment or machinery. Prices on machinery may be discounted or you may be enabling to purchase pre-owned machinery from the businesses that have to stop their operational units due to COVID-19 outbreak. Taking the benefits of machinery loan, you can focus on growing your business and profits during these challenging times.

♦ Fix the machines: Sometimes, you probably already own necessary equipment in business. However, at certain times these tools can break when you least expect it. Securing a machinery loan can help you to get necessary machines fixed so that your business operations can run smoothly. Broken equipment can slow down your production or even halt the sales, which would be risky for your business amidst COVID-19 conditions. Thus, getting a machinery loan as early as possible can ensure that your business get back on track.

♦ Lease the equipment: Many of the business persons do not realize that they don’t have to buy every piece of equipment that is necessary because they have option to lease equipment when they do not have enough money to purchase an item. Always keep in mind that some leasing contracts allow you to update your machinery after certain amount of time which means you might not worry about repairs and other inconveniences.

♦ Increase profits: Having more equipment will allow you to serve even more clients. Even if all your equipment are functional but buying an additional machines could ascend up your income. To illustrate, if you own a restaurant, buying another oven could help you prepare more meals which would enable you to serve more persons at a time. As now restaurants are navigating with COVID-19 conditions, it would allow you to fulfill more takeout orders ultimately increasing your profits.

♦ Replace old machinery: When you “Apply For Machinery Loan“ it can boost your business with the newer and high quality equipment. For instance, if you are in transportation business then buying a new vehicle may help you in business branding to attract more clients in a single time.

To conclude, your small business equipment greatly affects your business operations and production, so it is important to evaluate the state of your machinery periodically and keep it updated for better functioning of your operational unit. Hence, applying for a machinery loan or equipment lease, you can grow or expand your business to the newer heights of success.

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.