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.

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.

Nowadays, there are several types of loans available for everyone who’s in need. The most popular ones are home loan, personal loan, business loan, loan against property, gold loan etc. the traditional lenders and NBFCs are eager to provide the loan against a precious metal because most of the countrymen posses gold in form of jewelry and ornaments as they see a good amount of capital appreciation over the time. A gold loan provides you instant cash for most of your immediate expenses such as medical emergency, debt consolidation etc. Here is the list of some benefits of taking a “Gold Loan“ to fulfill your requirement.

♦ Quick processing: Once you submit the yellow metal to the lender, it evaluates it according to the market price and credits the loan money to your bank account. The gold is kept as collateral with the lender until the loan gets repaid. The evaluation of gold is conducted on the spot, hence cutting down the processing and disbursal time.

♦ Fulfill your financial goals: The repayment period of the loan can be extended from 6 months to 2 years that means you can close this loan sooner as compared to other loans. Therefore, it can fulfill your short-term financial goals and needs. For long-term goals, you can opt other kind of loan that can suit you the best.

♦ You can borrow as per need: Generally, other kinds of loan like personal loan and business loan are not offered if the amount needed is lower than a lakh but in case of gold loan, you can borrow anywhere between thousands to few lakhs. Thus, this asset can provide both small and huge financial needs.

♦ Loan money for any purpose: Many of the individuals “Apply For Gold Loan“ to fund medical emergencies, business needs, wedding expenses etc. Therefore, there is no obligation on the end purpose of the borrowed money. You can use the loan amount for an essential purchase, home improvements or just about anything as long as the usage is legit and not illegal.

♦ Minimal documentation only: All other loans mandate the lender to check on your income, tax returns and CIBIL score but in case of gold loan, you just have to provide your identity proof, address proof, passport sized photographs along with your gold ornaments.

♦ Lower interest rate: Most of the lenders charge a very low interest rate as they keep you gold jewelry as collateral in hand, as a result, lenders do not have to worry about recovering the loan repayment in case of default. Some of the lenders can offer interest rate as low as 10.5% as compared to other unsecured loans.

A gold loan is one of the most reasonable credit facilities that you can use for immediate financial requirements. Since gold jewelry and ornaments always appreciate in value and also helps lenders to trust the borrower and provide them a loan against gold. You can apply for the loan against gold at our website ShubhBank.com and get your disbursal the same day.

Gold loans are the straight forward method of raising money in case of an emergency. If you need urgent money for marriage or festivals or travel, you can formally go fall for the power of gold. You can mortgage your gold ornaments to the bank and financial institutions. You do not need to sell the gold ornaments in the market; you can simply mortgage it to the moneylender. However very often people make some fundamentals mistakes while “Apply For Gold Loan“.

1. Lenders Credibility: – A major blunder that people commit is taking a loan without checking lenders credibility. In a gold loan, you have cash in hand but for that, you have pledged your gold ornaments. Therefore the risk is more on the borrower as compared to the lender. You must check the background of lenders. A gold loan can be risky as a gold ornament will be kept by the lender till you pay the whole amount. So you must take a gold loan from reputed banks or financial institutions as they abided by RBI regulations.

2. Less Research: – You would be doing less research while applying for the loan. When you search online you will get many websites showing you interest rates or processing fees but take your time. Do not run for choosing the first offer. The more you will search, you will get better options.

3. Negligence of repayment structure: – Another common mistake is the negligence of the repayment structure. It is extremely important to study these structures and select the best one for yourself. Check your liquidity of cash flow so that you can pay the EMI amount other you will end up losing your gold jewelry. There are many options for paying the loan amount like Regular EMI, Only Interest EMI, and Partial repayment, Bullet repayment. You can select the best suitable method by yourself.

4. Read all conditions: – Before applying for a gold loan always remember the devil lies in the detail. So get the clear aspect of loan to value calculation. Borrowers must understand how the bank or financial institutions in calculating the value of your gold and based on that you will get the amount of loan. As a borrower, you need to have a good idea about the market value of gold. Mostly Bank offers loans at 22 carats of gold or above. If the gold ornaments are less or impure then the loan can be rejected. Gold coins are also accepted if they are above they can be accepted as collateral.

5. Not Checking prepayment charges: – While lenders do charge any prepayment fee for a “Gold Loan“ but some charge some 2.5% from the outstanding amount if you pay before the tenure period. The prime objective of making prepayments is to save on the interest cost; incurring prepayment penalties would reduce the benefit from making prepayments. Hence, opt for a lender that charges minimal or no prepayment/ foreclosure fee.

To conclude you must remember all the above-mentioned points while applying for a gold loan.

Gold loan, also known to as “Loan Against Gold“. It is a type of secured loan. Gold loan is always availed by pledging gold ornaments with the lender in exchange for money. You can pledge your Gold ornaments, jewellery, coins, and bars to avail of the gold loan. Your gold loan would be as safe to the lender until you repay the loan amount.

Gold loan is similar to a personal loan, there is no restriction in using the money. You can use the gold loan funds for paying medical bills, Tuition fees, purchasing a car, renovation of home and emergency needs.

Features of Gold Loan:

1. Secured loan: – Gold loan is one of the type of secured loan. Your CIBIL score does not matter in this. It does not matter if your poor score. All you need to have physical gold to lend. A secured loan is offered at a lower rate of interest.

2. Flexible Repayment: – You can repay the loan either by EMI or pay regularly the interest and principal amount lump sum at the end of the loan tenure. Gold loans are popular for this flexible repayment.

3. Quick Processing: – Gold loan lenders do not bother about the Credit score as it is a secured loan. Paperwork and other formalities involved in gold loan processing is very minimal. This is because the lender gets your gold in exchange for money.

4. Quick Disbursal of loan: – Gold loan can be disbursed within 10 minutes as the documentation work is very less.

5. No restriction on funds utilization: – Funds received as gold loan can be used for any purpose. You can use funds for purchasing a car, renovation of home, medical expenses, and education expenses.

The loan amount and interest rates
The loan amount varies from organization to organization. It depends on where you “Apply For Gold Loan“. The loan amount will vary if you get it from a lender or a bank/financial institution. Both private and national banks offer gold loan. The amount sanctioned will be decided after verifying the purity and weight of the gold bars or ornaments. Then the current market rate for gold will be considered based on which you will get a loan. The majority of the lender and banks/financial institutions offer 75% of the value of the gold, which is pretty good!

Again the interest rate will also differ. Private lenders tend to charge higher interest rates than banks. It is a better option to get a gold loan from a bank than from a private lender. Banks levy less interest rate due to the nature of the loan. A gold loan is a secured loan. Hence the interest rate is pretty low compared to other types of loans.

Repayment of loan amount
There are different ways you can pay off the loan. You can either pay the whole amount along with interest at the end of the tenure or may choose EMI. Banks give you more options when it comes to repayment of loans than private lenders.