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WHY GOLD LOAN IS BEST OPTION FOR LOW CREDIT BORROWERS?

Posted on Monday July 25th, 2022

Nowadays, individuals looking for required funding have a lot of options offered by the lending sector and the best option among all credit solutions are Gold Loan especially for the loan seekers who have low credit score. There are number of people who suffer financial crunch and Apply For Gold Loan as it has speedy disbursement and flexible repayment structure.

A loan against gold is a secured loan that demands you to keep your gold ornaments and jewelry as collateral to the lender to access desired funds. It proves to be viable choice for low credit borrowers with short term cash needs.

The loan money can be used to fund any financial crunch and it is convenient because of its characteristics which are mentioned below:

High loan quantum: As compared to other secured and unsecured loan solutions, gold loan has a higher loan amount cap. The loan money directly based upon the quantity and purity of the gold that you are going to pledge with specific lender. This loan is the good option if someone requires a more considerable borrowing. One will get the 70-80% of the gold value as a loan amount.

No need of credit history: In case of gold loan, one needs not to be concerned about their credit history because lenders never consider your credit report while approving your loan application. The best thing about gold loan is that you are not obliged to disclose any existing loan before applying for loan against gold ornaments.

Low rate of interest: The gold loan has a lower rate of interest as compared to other secured loans such as Home Loan, Loan against Property and Machinery Loan etc.; therefore loan against gold is less expensive than other types of secured loan solutions. It means you will be required to repay the loan money with less money from your monthly budget without burning a hole in your pocket.

Flexible repayment structure: This is the best feature of gold loan because unlike other loans, gold loan can be availed with various loan repayment options. There are basically three types of repayment choices such as regular EMIs, you can pay only interest during the loan tenure and principal amount at the end or you can pay the interest as well as principal amount after the tenure with no repayments made in meantime.

Hence, it is an attractive option and one can Apply For Gold Loan Online or offline by leveraging their possession to receive desired cash in an emergency situation. ShubhBank is one of the leading NBFCs across country that provides gold loan with lowest and effective rate of interest. We provide you the flexible repayment options from which you can choose the best suitable for you.

One needs to submit their basic details and gold ornaments to the lender to get immediate funds which they can use for their personal and professional needs. We are there to support our customers in the direction of growth and to provide all the loan services at their doorstep valuing their time and money.


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HOW TO REPAY GOLD LOAN IN EASIEST WAYS?

Posted on Wednesday June 29th, 2022

Nowadays, gold proves to be a great asset to acquire funds in the times of cash crunch. Most of the lending institutions offer gold loan with flexibility in terms of repayment. One can choose to repay in part payments or EMIs, bullet payments depending upon your needs and budget. Before you Apply For Gold Loan you must need to understand all the repayment schemes.

There are some repayment ways associated with gold loan that would prove to be a key for comfortable loan journey in a fixed tenure. Here, we have listed all those repayment methods in detail:

Equated monthly installments: EMIs or monthly installments are the most common method of paying back any type of loan. The repayment of loan against gold can also be done by opting for EMIs. If you have a regular income source then it is the most suitable method to repay a loan.

One can use an EMI calculator to calculate the exact amount of installment according to their monthly inflow of funds. The principal amount and interest rate payment as EMI would start right after the disbursal of loan money. Calculating your EMI prior to applying will help you in understanding of your loan cost and help you to manage your expenses.

Monthly interest payment: This method is similar to EMI method but with a little difference. In this case, you only have to pay the interest accrued on the loan quantum each month. You have to pay the entire principal amount at the end of the loan tenure. This method is suitable for the borrowers who have low income or do not have regular source of income.

Bullet payments: It is meant to be onetime payment where lender would charge monthly interest on the loan amount but the payment for both would be due at the end of the repayment period.

Bullet repayment would be a best method for short-term gold loans ranging between 6-12 months. However, it is a great option but one has to pay more money in form of interest rate at the end of loan tenure. As it is an expensive way to repay gold loan but suitable for those borrowers who cannot afford monthly installments and have an unstable source of income.

Partial payments: It is another popular way for gold loan repayment. A partial payment meant for making lump-sum payments for loan when you are able to do so. This is the great and easy method for individuals who are unable to pay monthly installments.

One can customize the amount to be repaid depending upon repayment capacity. It can save you a lot of bucks by making larger payments at the initial stage of loan tenure as it will reduce your interest burden.

Foreclosure: It stands for repaying the entire loan amount before the tenure ends. The repayments can also be made by making pre-closure payments. if you pay the full amount during your tenure, you can pay off your gold loan conveniently and take your pledged ornaments to your home instantly.

Therefore, before you Apply For Gold Loan Online or offline, choose the best way of gold loan repayment and enjoy a hassle-free loan journey.