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HOW TO MANAGE YOUR FINANCES DURING CORONAVIRUS PANDEMIC IN 2021?

Posted on Monday April 26th, 2021

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.


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HOW TO UTILIZE A BUSINESS MACHINERY LOAN?

Posted on Monday February 15th, 2021

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.


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HOW DIGITAL PLATFORMS HAVE CHANGED THE FACE OF LENDING?

Posted on Monday December 21st, 2020

Nowadays, each and every sector is transforming and doing business through digitalization, whether it is a private firm or public, a great change is being seen from the past decade. Due to COVID outbreak, the last six months have been extremely crucial to survive in any business. Most of the businesses have leveraged the use of digital platforms to provide services to their clients at the comfort of their personal space. Everyone is competing these days, to serve the customers best through their online sites. Therefore, the financial sector is no exception here, almost every financial institution is providing online services to Apply For Loan or to make online payments, everything is getting quicker.

The lending sector is one of the few sectors which are running all the time. The financial institutions with digital lending platforms are making a difference in potential loan borrower’s lives by providing loans in just a click of the button. The digitalization in lending has been growing and has become footfall for any customer before branch interaction. The automation process has made the digital adaption easy and there are many digital strategies that financial institutions are adopting which are listed below:

√ Online loan applications: Now, it becomes easier for loan seekers to fill online application forms, upload KYC documents and compare the loan schemes anytime and anywhere in a couple of minutes. It is unlike the conventional process where a personal was required to visit the banking or non-banking branch to Apply For Loan Online. Once you get approved for the loan application, the loan disbursal would take few business days to get credited. With digital lending services, most of the things can be done online which reduces time and require less paperwork.

√ Privacy: Security is of severe importance for any financial institution to ensure customer data is safe by using significant technologies. Cyber crime is a greatest threat especially to lending sector where customers trust them for their money matters. Some of the key steps such as user authentication and secure infrastructure are taken to tackle privacy concerns.

√ Automated process: The manual intervention is eliminated by using significant softwares designed to handle documentation, KYC and other work making the process easier for both borrower and lender. Most of the banking and non-banking companies are automating their services which provide high accuracy.

√ Marketing: Companies are adopting the idea of email marketing, social media marketing and telecalling to reach out the potential customers. They are engaged in investing in online channels to create their brand image, to build a fan base and attract customers by online marketing strategies.

ShubhBank is one of the leading digital lending platforms that is making a difference in its customer’s lives by offering online loans in the comfort of their homes. Serving the customers is the core value of ShubhBank and we always keen to bring trust among our borrowers to be a preferred choice for them. All the process related work can be done online by lessening the manual process.


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SEEK A GOLD LOAN TO RESUME BUSINESS OPERATIONS AMID LOCKDOWN

Posted on Friday June 12th, 2020

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.


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FEW TIPS TO AVOID THE FINANCIAL DISTRESS FROM COVID-19 OUTBREAK

Posted on Monday June 8th, 2020

The coronavirus is spreading fast and has brought up a discomforting slowdown in everyone’s life by some or other ways. It is essential to understand the magnitude of financial distress as the virus has pushed the financial markets into a tailspin. It is not just to stay healthy and safe medically but it would be prudent for every individual to look after their current savings, expenditures and emergency funds. Here, ShubhBank is proposing few tips to avoid the financial distress from COVID-19 Outbreak and to stay financially strong to ride out of the current turmoil. Let’s have a look on them:

Build secondary sources of income: The surplus funds can be savior in this pandemic outbreak. Look out for part time work, preferably that could help you to overcome the financial crisis. One of the possible avenues could be register as a DSA at ShubhBank and utilize the quarantine time to generate the leads, getting the loans disbursed and earning high payouts to improve your finances.

Follow digitalization: Avoiding the crowd is the mantra to prevent yourself from getting infected by coronavirus. It is wise decision to use internet banking and apps to make payments. Also maintain some cash bundles at home safety vault to able to meet any emergency expenses.

Get an Insurance Policy: As we go with the recent studies of scientists, COVID-19 is here to stay for more than a year so it may be a wise decision to take a health insurance policy. Before purchasing any Insurance Policy ShubhBank aware you to keep a check on exclusions from medical cover and ensure the coronavirus related expenditure gets covered in policy or not.

Do not panic: If you have already made any investment for long-term goals then there is no need to worry to sell that asset as continuing such investments would not harm your financial health. Also, not rush to hoard basic commodities and contribute to society as a civilized citizen by taking required precautions.

Don’t miss the credit bills: Avoid the miss management of your credit card bills and EMI payments as it could hit your credit score badly. As upon lockdown gets open and you might need any gold loan or personal loan from ShubhBank to avoid debt trap then there will be greater chances of your loan application to get rejected within a short time.

Invest the funds wisely: If you are planning to invest your money somewhere, it is advisable to check the share markets which are hit by the virus turmoil because investing in such sectors that are falling badly will let you face significant losses. Various sectors such as travel and hospitality may take long time to recover from the losses of this economic situation. At the end, it is always safe to prepare contingency plan for your office work as well as home to ensure the work continuity and take care of your loved ones in case you are out of action for few days.