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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.


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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.


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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.


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HOW TO UTILIZE INSTANT CASH FROM GOLD LOAN?

Posted on Thursday April 29th, 2021

If someone wants to address any emergency financial needs, the efficient option one can choose is loan against gold. This loan is used as a ticket that makes easier for individual to cover their monetary commitments without getting panic. A gold loan need not require any lengthy application process and ensure that your financial needs get serviced at the earliest. The Online Gold Loan can be the most convenient option to tide over a period of cash crunch. It can be much beneficial, so take a look how to utilize the cash raised from gold loan.

⇛ Fulfill the business requirements: Some of the businesses like salons, boutiques and small eating joints do not require huge working capital for smooth operations. Thus, these business owners can opt for small loan money which helps to meet their capital requirements and can ensure their business keeps running without any hassle. It is also beneficial for the individuals who want to set up a business that does not need a huge investment.

⇛ Home improvements: If you fall short of money to cover your home improvement expenses, then a loan against gold can be your savior. You can easily secure the required funds to refurnish your home through a cash flow that you availed by pledging your precious metal with the particular lending institution.

⇛ Purchasing personal products: One of the most important reasons to Apply For Gold Loan is to purchase an electronic appliance for your home or office, any needed gadget. The loan quantum is especially handy when it comes to purchase air conditioners, refrigerators etc for your personal or professional space, a tablet or laptop for your children education or furniture to refurbish your home.

⇛ Medical emergencies: Life is full of uncertainties and any of medical emergencies can cause a cash crunch which can be difficult to cover up with your savings and you have to think out a back-up plan. Usually, this instant loan can make a perfect option for you which can support you to regain the financial footing under such circumstances.

These above mentioned requirements can be easily addressed with the help of online gold loan. The loan money availed by pledging your gold can be beneficial when it comes to meeting these funding requirements, owing to multiple benefits they offer and without any end-use limitations. One can borrow the funds based on the value of the gold they pledge as collateral and need not to meet any stringent eligibility criteria to avail the loan.

ShubhBank is a digital lending finance company that has not only made the gold loans easily accessible to potential loan seekers but also made availing instant cash online through its website ShubhBank.com. One just only needs to submit an application through our website owing to easy-to-use interface. The loan can be availed 24X7, as required by the borrower by pledging the gold. You can utilize your pledged asset without depreciating its value when you repay the entire outstanding amount in a given period of 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.