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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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WHICH FACTORS DECIDE LOAN VALUE OF GOLD LOAN?

Posted on Friday May 27th, 2022

A gold loan is secured credit solution that borrowers can get by pledging gold jewelry as collateral. The disbursed amount against gold is a percentage of pledged ornament’s current market value. Nowadays, financial institutions can lend up to 75-80% of the value of gold as per RBI’s guidelines and a demand for gold loan has increased over decades so this trend doesn’t seem to finish soon.

There are several factors that are taken into consideration while deciding loan money in lieu of gold jewelry. When you Apply For Gold Loan the granted LTV ratio depends upon the form of gold, its weight and purity, borrower’s repayment capability as well as loan tenure. The above listed factors must have helped establish an idea of the things that lender consider while deciding loan value. Let’s discuss all these parameters:

Loan-to-value ratio: This value is an assessment of lending risk conducted by any lending institution before approving any loan. It is a percentage of pledged asset’s value that a lender can lend to a potential borrower. Besides that, loan seekers can use online gold loan calculator to evaluate the loan quantum beforehand. Hence, it is good to know about various loan options and choose the most suitable one.

Purity of ornaments: The purity of provided gold assets as collateral crucially impacts the granted loan money. As all knows, quality of gold jewelry is measured in carats ranging from 18 to 24 in numbers. More will be the purity of pledged jewelry, more you will receive the funds against it.

Weight of gold assets: It is one of the major factors that every lender considers while approving a gold loan. However, your gold ornaments are studded with diamonds or any other precious stone, only the weight of gold will be a determining factor. An individual who pledge higher gold weight age can secure more funds. Basically, one has to pledge minimum of 10-15 grams of gold as security against gold loan.

Eligibility: Apart from these significant factors, the other parameter that determines your loan value is meeting the eligibility criteria specified by particular lender to get an affordable rate of interest. There is a basic criteria check for gold loan which is easy to meet such as borrower should be above 18 years of age and have a sufficient amount of gold. Therefore, gold loan is an ideal credit solution for borrowers as it has no stringent eligibility criteria.

Rate of interest: The interest rate is measured based upon the creditor’s risk assessment and may differ from one lender to other. Moreover, the loan quantum and loan tenure plays a significant role in determining applicable gold loan rate. When you Apply For Gold Loan Online or offline, always go with prominent lending institutions such as ShubhBank. A loan seeker must do a proper lending market research before choosing a lender for you.

Sounds simple enough! So, if you have idle gold assets and you are dire need of cash, then just opt for gold loan to fulfill your financial requirements easily.


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HOW TO MAKE A CHOICE BETWEEN PERSONAL AND GOLD LOAN?

Posted on Friday April 29th, 2022

Nowadays, it is becoming tough to sustain and maintain the cost of livings because of ongoing pandemic along with a trail of economic downfall as well as devastation. However, financial crunches and emergencies can knock your door anytime but it’s up to you that how to cope up such situations? One can either Apply For Gold Loan or a Personal Loan.

These two loans are most popular among borrowers due to faster processing and they never restrict the end user to use their loan money to fulfill the purpose. Now the question arises- which one is better option among both loans? To know this, we have mentioned few factors which help you to compare both the loans. It will give you better understanding of both the loans to decide which loan suits best to your financial situation.

Loan Size: As Personal Loan is an unsecured loan so the loan money ranges between 50 thousands to 15 lakhs. Some of the lenders can even offer a higher amount depending upon your creditworthiness and repayment capacity.

Gold Loan is secured type of loan and the loan quantum purely depends upon the gold amount that you will pledge as security. A lender can provide maximum of 75% of your gold’s value. Therefore, if your gold value is more, you can secure higher loan amount.

Tenure: The loan tenure given for Personal Loan is 1-5 years but few lending institutions will provide the longest tenure of 8 years. If you have low income then opting a longer tenure with smaller EMIs is a better solution.

Gold loans can be offered for tenure of few months to 5 years but it can be best option if one can afford a higher EMI payment for a shorter tenure.

Repayment: Personal Loan can be repaid in monthly installments which will be a mix of payable interest and principal amount. This is the only option which you must follow whereas Gold Loan can be repaid in different modes such as bullet repayment, monthly installments and upfront interest method, so you can any of one that suits your pocket.

Processing Fees: The charges for processing a Personal Loan can be 2-3% of the entire loan amount which is standard and mandatory but when you Apply For Gold Loan Online or offline, the lender may charge processing fees up to 1-2% of the total loan amount. These charges are much lower than the charges on Personal Loan.

To reiterate, one can make choice between Gold Loan and Personal Loan depending upon their need, credit score as well as repayment capability. Personal Loans can be ideal choice for the borrowers who are looking for a higher loan quantum where as Gold Loan can be best for the customers who wish to opt flexible repayment options and also have a bad credit score.

If you are also planning to apply for Best Gold Loan, then you can visit ShubhBank or apply online at our website to enjoy stress free loan journey at lowest possible interest rate.


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WHAT TO LOOK BEFORE GETTING ONLINE GOLD LOAN?

Posted on Tuesday March 15th, 2022

However, digital payments were once a convenience but have become integral part of life these days. The restrictions have risen during the Coronavirus Outbreak which has further pushed this necessity. It’s not just the case as digitalization has also changed the way people borrow funds. Any potential loan seeker can now access the funds with a single click of fingertip sitting in their personal space.

As online loans are gaining momentum, especially gold loans are turned out to be savior in these tough times as they are offered on lowest possible interest rates and have easy repayment structure. It is easy to Apply For Gold Loan but there are certain things which you must check on while taking an online loan.

Lender’s Credibility: It is good to do a thorough research about the online lender and his/her credibility before you avail a gold loan. Get through various factors to verify the digital presence of the lending institution which involves authentic website, ethical loan terms and conditions as well as customer reviews. One can also check whether the lender is registered with RBI or a partner associate with verified financial institution.

Online Payment Mechanism: Prior making any digital payments for your gold loan, it is significant to track the verified accounts. Never make any payment under a DSA or loan executive name. To your convenience, digital lenders offer multiple repayment structures where you can repay your loan money using various EMI methods such as bullet repayment, regular monthly installments or overdraft facility.

Customer Relationship Management: Make sure yourself that the specific lending platform provides you with an efficient customer service mechanism because a legit online lender always provides you with reminders on repayments via SMS and mails on availing a gold loan. A real-time digital lender will ensure communication from the initial stage of taking a loan to the time until you repay your entire loan amount.

Rates of interest: It is the topmost advantages of digital loan against gold that you can easily compare the different lenders offering gold loan with different deals without asking your credit score. One can also compare the different rates of interest and other processing charges before you Apply For Gold Loan Online to choose a best lender for you. Other benefit associated with online gold loan that operation costs will be less, hence lowering borrowing costs.

Know the loan terms: The authentic lender always let you understand all the loan terms and conditions as well as all the processing fees details by their loan executive. However, it is borrower’s duty to read each and every loan clause carefully mentioned in the loan agreement before signing it. One can also compare the multiple gold loan schemes and its terms and conditions before finalizing any digital lender.

To get a best gold loan deals and customized assistance for your loan online then one stop solution, ShubhBank can be a great choice as they provide digital gold loans at competitive interest rates being a frontrunner in the gold loan market.


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HOW GOLD LOAN CAN KICK AN ECONOMIC DISTRESS?

Posted on Friday January 28th, 2022

In the times of Coronavirus Pandemic, the lives of common people have once hit hard as this outbreak deepens. Some of the small scale industries are either on the verge of shutting down or have been shut down whereas a huge portion of working individuals lost their source of earnings. In this time period, the demand for loans has risen. In our nation, every household has some quantity of precious metal which gives them the power to avail a gold loan to revive their source of income.

Gold loan is one of the most convenient options to get funds in pandemic. One can Apply For Gold Loan by choosing a suitable lender with their gold assets, get them evaluated and can access the needed funds. A borrower can secure up to 75% of gold market value as loan money. There are number of gold loan lenders who provide online or in-house evaluation of the gold.

Meanwhile, if you can’t afford any unsecured type of loan such as Personal Loan that demands strict eligibility criteria as well as good credit score, you can easily opt out the option of Gold loan as it doesn’t require any income proof or any credit history. Therefore, in this article, we have mentioned some of the parameters for which the gold loan demand has been risen up in today’s scenario:

Multi-purpose use: It is one of the good parts of this loan as there is no restriction on the usage of loan money. One can use these funds for personal or professional requirement and can get rid of any financial crunch.

Low rates of interest: As gold loan can be accessed easily because it is also offered at low rates of interest in lending market. The usual rate of interest for a gold loan stands at an average of 7.30% to 9% per annum.

Flexible loan quantum: It is one of the great benefits of this loan either you visit any specific lender physically or Apply For Gold Loan Online it always offers flexibility in principal amount offered by the lending institutes. One can secure a loan against gold for needful loan money depending upon your requirement and availability of the gold that you have to pledge he lender.

Less paperwork: One doesn’t require any salary proof or credit report to apply a gold loan, thus saving your time and making your loan experience more relaxed, you can get a loan with basic documents such as domicile certificate and identity proof. Every lending institution just verifies the purity of your precious metal that you are going to pledge for the loan.

Flexible repayment: In gold loan, you are free to choose a flexible repayment mode. One can choose a bullet repayment scheme or regular EMI option to repay the loan during the tenure.

Hence, knowing these attractive features and advantages of gold loan, it would not be wrong to say that demand for gold loan will elevate in coming days as it is most convenient and easy option to let down any financial burden.


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HOW TO AVAIL A GOLD LOAN FROM DIGITAL LENDER?

Posted on Wednesday December 29th, 2021

Nowadays, digital payments are convenient and ought to be a necessity of every market. The restriction in the Corona virus Pandemic further pushes the necessity. Likewise, digitalization has also impacted the lending market as well as the way borrowers borrow money. Anyone can secure the funds and get credited with just a click of button sitting at their personal space.

As digital borrowing is on fast pace, therefore, one can easily Apply For Gold Loan digitally as it is most convenient and instant loan offered by the lender but there are certain things which one should remember before taking a loan from digital lender.

Check the lender’s credibility: It is most important to go through the credibility of particular lender before you decide to take a gold loan. Firstly, check the digital presence of the lending platform based on number of factors which include authentic lending app or website, application form, existing customer reviews etc. secondly, check whether the lender is verified and registered with RBI.

Payment Mechanism: One must make digital payments for your loan on your verified account as you can track it easily. Never accept the payments under a loan executive’s title. Nowadays, digital lending institutions offer flexible repayment options for online gold loans which you can repay by EMIs using various methods i.e. bullet repayments, over draft facility and regular EMI option.

Customer relationship management: Always make sure that the verified lender provides you with real time and efficient customer services. One will receive reminders regarding interest payments as in text messages or through e-mails, when they secure gold loan through a legit online lender. An efficient digital lender will ensure communication from the very first day of your application until the full repayment of your loan.

Rate of interest: It is the most significant thing when you Apply For Gold Loan Online as it will give you easy access to compare the various lenders and rate of interest charged by them without affecting your CIBIL score. Moreover, when you avail any loan digitally, various loan processing charges associated with gold loan get waived off, hence lowering the borrowing costs.

Understanding the loan agreement: The digital lending institution will make you understand all the terms and conditions and the other hidden charges associated with the gold loan. It would be wise decision to go through every clause mentioned in the loan agreement before signing it. One must check the gold loan terms before signing the blue print of the agreement.

The online lenders in the market are primarily governed by NBFCs (non-banking finance companies) which means that they are the front runners in the gold market. Therefore, if you are planning to avail the best gold loan scheme and personalized assistance for the loan digitally then ShubhBank would be better choice as we offer online gold loans at attractive rate of interests and our efficient team will assist you through each and every step of the gold loan processing making your loan journey easy.